Korea's Place in The Global Music Industry
Korea's Place in The Global Music Industry
Korea's Place in The Global Music Industry
Abstract
2
of which have already hybridized their pop culture with the mix
of WC since the 19th century (Iwabuchi, 2004, Forthcoming;
Park, 2006; Hirata, 2008; Ryoo, 2009; Shim, 2011).
3
SM Entertainment‘s core business competence was bifurcated
within the organization into: (1) creativity management; and (2)
export management. In one of the extant studies, Oh and Park
(2012) focused on export management, characterized by SM‘s
business focus shifting from B (business) to C (customers) to B
(SM) to B (YouTube). This transformation of SM‘s international
strategy necessitated competent international managers like
Youngmin Kim, SM‘s CEO, who was pivotal in successfully
introducing BoA and TVXQ in Japan. Hailing from Japan
himself, Kim spent his primary, middle, and high school years in
Japan before coming to Korea University for undergraduate
studies. While Soo Man Lee, SM founder and Chairman, has
managed just the creativity management side, Kim has had full
freedom and power to blandish his sword in export matters. The
connection between YouTube and SM, something that Japanese
and Chinese entertainment managers have not sought to utilize,
was first mapped out by Kim, who accidentally discovered the
YouTube icon as it was permanently pre-installed on a Japanese
iPhone first released in 2008.
4
different goods and services to music consumers. For example,
the classical music industry, a representative case of ―high
culture‖ in Bourdieu‘s (1984) term, has a widely different system
from that of the K-pop industry, an exemplary case of ―low
culture.‖ While the classical music industry has prestigious
national and international schools that officially train musical
geniuses, the K-pop industry has no such privilege except for
private training camps often labeled as ―slave camps‖ by
antagonistic journalists. Whereas opera is delivered in luxurious
nationally or imperially founded opera houses, K-pop concerts
are performed in sports stadiums or open air stages constructed
overnight.
5
they were easily pirated all over the world for cheap
dissemination. Unless countries enforced strict copyright rules,
singers and recording companies found it very difficult to garner
any substantial profit out of their music. Free music also existed
through the broadcasting model of music dissemination (Fox and
Wrenn, 2001). Music was aired on radios or television music
channels without fees to the audiences, as long as they listened to
or watched program sponsors‘ commercials. In many countries
where piracy was rampant, appearance on TV programs was one
of the important income sources for artists who had no other
option but to appear on nigh club shows or take a national
concert tour with less secure income guarantees than that of TV
programs.
6
from all over the world is easily searchable and watchable
through streaming technology on YouTube. It is therefore not
uncommon now to find K-pop and other popular music artists
form the developing countries who have previously pursued
classical music careers, because their chance of making fortune
in the popular music industry has tripled and quadrupled due to
the internet.
7
The question, then, is what makes these producers qua
venture capitalists legitimate in the whole value chain, where
8
Furthermore, Figure 1 shows that these global music suppliers
occupy the middle point between multinational enterprises
(MNEs), which provide funds to K-pop production by buying
advertising time, and Korean producers who buy some of the K-
pop music originally coming from Sweden (melody), England
(melody, lyrics, percussions), and the U.S. (beats, lyrics).
Performers (mostly Koreans with some Chinese, Japanese,
Southeast Asian, and other talents) occupy the lowest value
bracket on the value chain, whereas MNEs, producers, and
distributors (YouTube) take the largest cut in the global music
industry. As exemplified from this value chain, Korean music
producers have adopted a new globalization strategy that can be
referred to as a ―G-L-G‘‖ strategy, to which this paper now turns.
9
G-L-G‟: K-pop‟s Globalization Strategy
10
etc.); (3) active participation in global cultural industries by the
Korean and overseas Korean population; and (4) most
importantly, participation in the global division of labor in music
manufacturing and distribution.
11
European, North American, Central and South American, and
Japanese music producers and distributors. Equally challenging
is sustaining popularity in the global music market. This is why
the entire process of Global (G) → Local (L) → Global‘ (G‘) is
untenable if the ―L‖ component of the global division of labor is
not creative or unique (i.e., product differentiation) enough to
attract producers and distributors, not to mention global fan
groups.
12
some Americans have argued that K-pop, epitomized by male
musicians dancing and singing simultaneously in groups, came
from Michael Jackson‘s own singing and choreographic styles
(Kim, 2010). All these arguments are also circular because their
logic is based on the absurdity of: (1) Koreans are born horse
dancers and (2) if anyone emulates cowboy dance or Michael
Jackson, he/she will be a global idol. If Koreans are born horse
dancers, why didn‘t American cowboys create the horse dance,
too? If Michael Jackson was the key to K-pop‘s global stardom,
why didn‘t Taiwanese singers mimic Jackson‘s music/dance and
become world stars, too?
13
The ―number‖ factor alone, however, is not sufficient. Japan‘s
top girl bands, AKB48, SKE48, and HKT48, feature 48 singers
and dancers at the same time, making them constantly visible on
the Oricon chart. However, they have not had any global success
much akin to that of K-pop girl bands, such as Girls‘ Generation,
which features only nine members. K-pop‘s ―physique‖ factor
therefore must be taken into consideration in its differentiation
strategy. In other words, Girls‘ Generation and Wonder Girls are
at least 10 inches taller than AKB48 or HKT48 members, let
alone the fact that the Korean singers show off much sexier and
sophisticated looks and bodies than their Japanese counterparts.
Japan‘s top male idol group, Arashi, which features five
members, also pale in comparison with the physique of their
male K-pop counterparts. TVXQ, originally featuring five
members, and Shinee, also featuring five members, are at least
10 inches taller than Arashi members. As a result, K-pop music
videos and concerts are much more visually appealing than those
of other Asian (especially, Japanese or Chinese) counterparts.
The emphasis on the physique side of performers simultaneously
implies that K-pop idol groups have different sources of global
attraction from those of African or African-American music
artists. Targeting Asian and Western female fans mostly, K-pop
emphasizes thin, tall, and feminine looks with adolescent or
sometimes very cute facial expressions, regardless of whether
they‘re male or female singers. On the contrary, Caribbean and
African American singers highlight their colonial-style male
attractions with body looks that are not manicured, cosmeticized,
or thoroughly shaved.
Even though Western Caucasian and other ethnic boy and girl
bands may want to choose to rely on the physique factor for their
immediate rise to stardom, they often fall short of fans‘
expectation in terms of dance-singing coordination in large
groups. This is the third feature predominant in globally popular
K-pop idols. The ―L‖ process within the K-pop industry involves
a high level of specific in-house investments provided by
entertainment companies themselves that act like venture capital
firms. The learning process of mastering how to sing and dance
is crucial in the Korean ―L‖ process of the entire global division of
14
labor, as similar learning processes in the training of Korean
archery and golf players are also pivotal. Particularly, the length
of learning period is noticeably long often ranging from five to
ten years. The three major K-pop managing firms, or K-pop
venture capitalist firms, select potential idols through internal
auditions and/ or their K-pop cram schools. Trainees go through
vocal, dancing, language, and theatrical acting lessons for at least
five hours a day in the evening after school. They have to carry
out regular physical fitness trainings as well as take skin and
other beauty therapies. The entire program resembles that of a
total institution, as trainees are sometimes banned from using
cell phones during training (Ho, 2012).
This is why some critics call the learning process very abusive
of the trainees, although K-pop managers defend their programs
by arguing that the K-pop cram school is no different from
college prep schools, exam cram schools, golf school, and other
similar institutions. K-pop managers emphasize the fact that
they pay for all the K-pop education and training, unlike other
cram schools in Korea.2 After the entire period of training, K-pop
idols possess very different skills of singing, dancing, speaking
foreign languages, and acting from their competing singers from
China or Japan. They also look much sexier and trimmed than
their competitors from other countries.
15
With finished products in the form of global concert tours,
CDs, DVDs, and music videos downloaded or streamlined on the
internet, K-pop companies go abroad to market finished goods
through global distributors. Since CDs and DVDs must be
protected by copyright, all K-pop companies rely on Japanese
distributors for Japanese and other Asian markets. For concert
tours, K-pop companies rely on local concert organizers who are
also label sellers in the specific market. However, income from
these finished goods is not big compared to royalty income from
YouTube and other social media sites (SMS). YouTube is a
revolutionary SMS that has provided unexpected opportunities
to K-pop producers, while J-pop Asia and vevo are latecomer
competitors to YouTube in the global music industry.
16
time Korea did for Japanese cultural content. Third,
technological advancement in the 21st century has allowed for a
primitive form of cosmopolitanism at least in the virtual world,
where fans from all over the world can enjoy global content from
various different countries, including Korea. Without this new
digital technology (or real time streaming and the new social
media), the rise of K-pop as it is recognized today would not have
been possible. Fourth, the advancement of the global capitalist
economy that has successfully opened up Chinese, Indian, Latin
American, and the vast Southeast Asian markets, has allowed for
less biased investments and inputs in the Asian music industry
than before from Western music producers and distributors.
Conclusion
17
subcultures in the global cultural market). In this paper,
however, I argued that the globalization of K-pop involves a
much more complicated process of globalizing-localizing-
globalizing musical content that originated from Europe
compared to what the hybridity or Pop Asianism arguments
suggest. Korea‘s place in the global music industry represents a
new technique of locating already common and popular musical
content in Europe or elsewhere, modifying it into Korean
content, and then redistributing it to the global music market. K-
pop is an effort to network global talent pools and social capital
in the formerly disconnected music industry, rather than an
effort to emulate and slightly modify Japanese pop culture. As
such, in the global music industry, Korea occupies a structural
hole between Western and East Asian music industries.
Notes
2. Based on the interviews with the CEO Youngmin Kim and the
A&R Manger Chris Lee at SM Entertainment on Nov. 13, 2012
and Dec. 20, 2012, respectively.
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Ingyu Oh is Professor of Hallyu Studies at the Research Institute
of Korean Studies, Korea University, Korea. He received his
Ph.D. from the University of Oregon. His recent publications
include ―From B2C to B2B: Selling Korean Pop Music in the Age
of New Social Media‖ (2012) and ―From Nationalistic Diaspora
to Transnational Diaspora: The Evolution of Identity Crisis
among the Korean Japanese‖ (2012). This work was supported
by the National Research Foundation Grant funded by the
Korean Government (MEST) (NRF-2007-361-AL0013).
23