PIO Reports on 'New Standard for the Era of Hallyu 4.0'
PIO Company
5 min read
The Innovative Fusion of K-Culture and K-Business, 'CAST,' Is Creating a New Standard for the Era of Hallyu 4.0
SEOUL, KOREA, Jan. 10, 2024 (GLOBE NEWSWIRE) -- Recently, PIO Company, has released a report on 'New Standard for the Era of Hallyu 4.0'. In the early 2000s, the Korean Wave (Hallyu) began to emerge, primarily centered around several Asian countries adjacent to Korea. Now, more than two decades later, the Hallyu phenomenon has solidified its position as a dominant influence, not confined to peculiar peripheral cultures, but rather as a central and influential player shaping the global cultural content industry.
(From top left in a clockwise direction) Actor Jung Il-woo, the K-pop group YOUNITE, and model Jung Hyuk, visit the CAST X MIXOP popup store; K-pop group AB6IX's Jeon Woong and Park Woo-jin visit the popup Asia CAST booth in Taiwan
Recently, the YouTube views for the mega-hit song "Gangnam Style" by singer PSY surpassed an astonishing 5 billion. Additionally, V, a member of BTS, a group with a massive global fanbase called A.R.M.Y, collaborated with American singer-songwriter UMI on "Wherever u r," reaching the top spot on iTunes' 'Top Songs Chart' in 89 countries worldwide, maintaining an unwavering influence.
While these are a few notable examples, numerous Korean stars, including those in K-pop, movies, dramas, and variety shows, continue to receive immense love. This trend is constantly evolving as it spreads across K-culture.
The analysis that we have entered the era of Hallyu 4.0 is gaining traction among experts, and a new keyword, "fusion," is gaining traction, shifting from the previous trend of focusing only on supply. This is partly due to the expectation of a new Hallyu paradigm through the convergence of various industries such as food, beauty, and lifestyle centered on Korean culture.
In response to the global spread of Hallyu fandom, the government is also focusing on developing new business models related to Hallyu 4.0. One of the most representative cases is the 'CAST (Connect, Accompany to make Synergy and Transformation)' program, organized and operated by the Ministry of Culture, Sports and Tourism and the Korea Foundation for International Culture Exchange (KOFICE).
Launched in 2020, 'CAST' is a multifaceted project that links Hallyu content with Korean small and medium-sized enterprises to promote their overseas export activities and simultaneously pursue the expansion of Hallyu's outreach. KOFICE supports the entire process, including planning, development, promotion, and distribution of products from small and medium-sized enterprises combined with various genres of Hallyu intellectual property (IP). Taking into account the limitations on utilizing top stars due to the conditions of small and medium-sized enterprises, KOFICE successfully built a new innovative business model by matching artists participating as creative directors with small and medium-sized enterprise brands on a one-on-one basis.
Many Hallyu artists are actively participating in this trend as well. They leverage new business models like 'CAST' to enhance their value as artists or collaborate with competitive products, providing the audience with more innovative content. This process not only serves as a foundation for Korean small and medium-sized enterprises to enter the global market but also proves to be a significant factor in the growth and development of the nation and businesses, highlighting the substantial role of Hallyu.
In the early part of last year, the renowned U.S. economic magazine Forbes positively evaluated Korea's 'CAST' project, stating it as a "promising business model leveraging the synergy between K-pop stars and Korean companies." The international interest in the sustainable growth of 'CAST' has been steadily increasing.
As '2023 CAST' enters its fourth year, the focus goes beyond simple promotion of small and medium-sized enterprise products. Consulting services throughout the planning, production, and marketing processes aim to enhance the quality of products. The emphasis is on achieving substantial distribution and sales results through expanded promotion and marketing efforts.
Above all, various promotions have been conducted across the globe, from Asia, including the '2023 Thailand K-Expo' and '2023 Taiwan Popup Asia,' and 'Design Korea 2023,' to Europe, with events like the 'Paris Maison&Objet Expo 2023' and operating '2023 CAST Popup Stores' in shopping hubs like '75 REDCHURCH' and 'MK2UK' in London's Shoreditch High Street. Through these efforts, some small and medium-sized enterprises have proudly showcased an elevated status, with a few officially confirming European market exports through this 'CAST.'
The lineup of participating artists is becoming increasingly diverse. Including actors Jung Il-woo and Seol In-ah, idol groups AB6IX, YOUNITE, girl group NMIXX, Billlie, TRI.BE, model Park Je-ni, Jung Hyuk, Taei, among others, a total of 16 teams of Hallyu artist IPs with influence in various fields participated. Among them, 16 companies (9 IP-matching companies / 7 IP-autonomous companies) collaborated to introduce products that combine functionality, originality, design and quality, market competitiveness, and social value.
Notably, this year marked a significant achievement as 'CAST' made its first entry into Europe. Considering the expansion of this initiative beyond Korea to a global scale, there is a growing expectation for continuous growth and development. In fact, Japanese journalist Otani Satomi, who visited the 'Paris Maison&Objet Expo 2023' CAST booth, expressed, "It was impressive to see various support and overseas promotional activities being carried out to facilitate collaboration between popular Hallyu IPs and excellent Korean products, which are currently gaining popularity." She requested more information related to the business.
After the conclusion of 'CAST' in 2023, KOFICE Director Jung Kil-hwa stated, "Through this CAST project, we achieved meaningful results, including our first entry into the European market. We were able to establish a stepping stone for domestic small and medium-sized enterprises to venture abroad through Hallyu content." He further expressed his ambitions for the future, saying, "Building upon this achievement, in 2024, we plan to actively support the overseas expansion of small and medium-sized enterprises through various forms of assistance and collaboration with Hallyu IPs."
'CAST' embodies Korea's pride in Hallyu content and its determination for continuous development. It is also interpreted as a commitment at the government level to respect creativity centered around Hallyu content and actively support the establishment of new business models utilizing it.
The innovative combination of K-Culture and K-Business, 'CAST,' is setting new standards for the era of Hallyu 4.0. As 'CAST' moves forward into 2024, the world's attention is eagerly awaiting to see what innovative collaborations will captivate the global audience, marking the next chapter in the evolution of Hallyu. (By Jane Carter)
