Exports Driven by Hallyu Increasing South Korea’s Economic Growth – Cultural Diplomacy Approach (Published)
Globalization is characterized by the increasing opening of a country to international trade and foreign direct investment. Many countries worldwide are competing in increasing the flow of funds and their share of exports in international trade. The Korean Wave (Hallyu) is a tool used by the South Korean government to approach the country’s bilateral relations. Supported by Cultural Diplomacy, an act of soft power to realize national interests in cultural relations between two countries with different national contexts. This desire to equalize the pace of economic development and image improvement makes South Korea earnest in carrying out Cultural Diplomacy by developing Hallyu. Furthermore, the South Korean Government relies on tourism for a significant percentage of their revenue to invest a lot in the country’s infrastructure. Hallyu is used as a soft power instrument for South Korean cultural Diplomacy, which plays a significant role in Korea’s economic growth. In fact, according to research results, Hallyu’s products can increase South Korea’s GPD by 0.2% in 2004 or by $ 1.87 billion and increase to $12.3 billion boosts on the Korean economy (Guo et al., n.d). This study uses four variables of Hallyu’s products that drive Korean economics according to Korea Customs Service (2021) and KOSIS to determine their correlation to GDP per capita. The Hallyu’s products used are Cosmetics (K-beauty), Fashions, Inbound Tourism and Educations (International student’s and Training). By comparing the other four highest variables according to Korea Customs Service (2021), namely Electrical, Nuclear, Vehicles and Plastics. By using correlations analysis method with python. The mathematical model of finding the correlation between all parameters shows that the correlation of Hallyu products to South Korea’s GDP per capita is robust, even reaching a positive number of 0.89 compared to non-Hallyu products with a positive value of 0.44. This circumstance indicates that the Hallyu product has a very high correlation, where there is a positive increase of a fixed proportion in the other. Therefore, cultural Diplomacy carried out by South Korea is an example of soft power that has succeeded in controlling the economy.
Citation: Titing Reza Fahrisa (2022) Exports Driven by Hallyu Increasing South Korea’s Economic Growth – Cultural Diplomacy Approach, International Journal of Developing and Emerging Economies, Vol.10, No.3, pp.23-37
Keywords: Korean Wave (Hallyu); Soft Power; Cultural Diplomacy; GDP per capita.