Donald Trump has won his second term in the White House as the 47th President of the United States of America, so how will this affect the Korean Entertainment industry? We explain!
Against all odds, Donald Trump will serve as the 47th President of the United States of America in the coming months. This recent result, will have a global impact on many other countries outside of the US, including South Korea.
As we have seen many Hollywood Movies have been made in South Korea, due to the production costs being lower, an array of filming locations and the rise of K-culture. Many people are now worried that when Trump takes office, it may have a negative impact on the Korean Entertainment industry. This is because Trump has mentioned a number of times in his campaign that he intends to use economic leverage to enhance US influence on Korean firms, and enhance jobs for the American people rather than outsourcing to overseas clients.
South Korea has also for some time now been seeking to become a world-leading exporter and importer of entertainment and media for a global audience. This has been seen with the K-Wave (Hallyu) which has gained international popularity, and this has also expanded to include Korean TV shows, pop videos and games, many of these are funded internally in Korea, though a vast number are targeted to US audiences.
The Korean government considers the entertainment and media industry as a key driver for the Korean economy. Thanks to abundant ICT infrastructure such as high-speed mobile connectivity and diverse purchasing power in entertainment, South Korea has become a lucrative and ideal test bed for new entertainment media and content. So can this increased revenue stay in Korea with the Trump administration?
Over the past decade, South Korea’s status evolved from being a consumer to that of a content powerhouse with popularity of “K-Wave” dramas, film, and music. Parasite, one of the notable examples of the globalization of K-film won the 2020 Oscar for best picture and was the first-ever foreign language film to win the Oscar for best picture. In 2021, Squid Game drew fans from all over the world and became Netflix’s most-watched TV series.
The film industry in Korea has grown into one of the world’s most active markets through the development of multiplexes and the popularity of movie-going culture.
Hollywood Walk Outs
Last year, we witnessed Hollywood walk outs on the entertainment industry, which was an historic event and the first walk out in over 63 years, due to pay and the use of AI in movies. The Korean entertainment industry will also be likely to face similar threats in the next couple of years, with the potential of foreign funds being cut and spent at home.
The differences between entertainment companies in the U.S. and those in Korea can be attributed to several factors, including cultural nuances, industry structure, business practices, and audience preferences. Here’s a breakdown of some key differences:
1. Cultural Influences:
Content Themes: U.S. entertainment often focuses on individualism, diverse narratives, and complex character arcs, while Korean entertainment (K-dramas, K-pop) tends to emphasize collective values, family ties, and romance.
Storytelling Styles: Korean dramas typically feature tighter story arcs, often concluding in a single season, whereas American shows may span multiple seasons with more extended character development.
2. Industry Structure:
Training and Development: In Korea, entertainment companies like SM Entertainment and YG Entertainment invest heavily in training idols through rigorous programs that include singing, dancing, and public relations. In contrast, U.S. talent often emerges through auditions and talent shows without such extensive pre-debut training.
Management Style: Korean companies often have a more hands-on approach, managing not just the careers but also the personal lives of their artists. In the U.S., artists typically have more autonomy, although management can still be quite involved.
3. Business Models:
Revenue Streams: U.S. companies often rely on diverse revenue streams, including box office sales, streaming rights, and merchandise. Korean companies also focus on merchandise and concert tours, but K-pop idol groups generate significant income through fan engagement activities, such as fan meetings and exclusive content.
Global Strategy: K-pop has become a global phenomenon, with specific strategies aimed at international markets. U.S. entertainment companies have historically been more focused on domestic audiences but have increasingly sought global reach in recent years.
4. Audience Engagement:
Fan Culture: Korean entertainment emphasizes a close relationship between idols and fans, often involving direct fan interactions through social media, fan clubs, and events. U.S. artists also engage with fans, but the relationship tends to be more distanced.
Media Consumption: Streaming platforms have transformed how audiences consume content in both regions, but the popularity of platforms like V Live and Weverse in Korea highlights a unique approach to fan engagement that differs from typical U.S. practices.
We have see similar effects in other countries such as with the advancements of technology taking away jobs, inflation means that people spend less, and work on cheaper alternatives, however the Trump administration are dedicated to creating jobs for the American people, so only time will tell if his second term in office will affect the Korean entertainment industry, as much as it has been anticipated that it will.
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