Hallyu and FDI: the growth of South Korea’s investment in Indonesia’s cultural content industry

Abstract

The popularity of Korean dramas and pop music, known as Hallyu or the Korean Wave, has positively impacted South Korea’s tourism and cultural exports. Nevertheless, studies about Korean foreign direct investment (FDI) associated with the Hallyu phenomenon are still scarce. Thus, this study attempts to investigate Korean FDI that flows to Indonesia under such a phenomenon. Data was collected through documents and relevant video reviews which was then followed by a key informant interview. The findings showed that the rising trend of Korean pop music in Indonesia has gradually stimulated Korean investors to invest in industries promoting the transmitted Hallyu culture, such as broadcasting, TV and video production, sound recording and music publishing. Despite the amount of investment remaining lower than in the heavy and manufacturing industries, the study indicates an increase in Korean FDI in Indonesia’s content industries due to the high demand for Korean cultural content and the country’s ongoing bilateral commitment to South Korea. This study adds to our understanding of how global familiarity with a cultural phenomenon may affect FDI inflows to the country from which that phenomenon originates.