The influence of "K," once represented by "K-pop" and "K-dramas," is spreading worldwide across multiple retail industries. In the past, localization was considered essential when entering overseas markets, but now Korea's unique methods and sensibilities are being embraced as a new standard. We highlight cases where Korean elements have become global competitive strengths and examine the direction "K" should take in the global market moving forward. [Editor's note]
As K-beauty, K-fashion and K-food have recently succeeded in the global market, the government said it would designate them as strategic export industries and support their growth. According to the Ministry of Trade, Industry and Resources, last year's exports of the five promising consumer goods categories (agricultural and marine products, cosmetics, fashion apparel, household goods and pharmaceuticals) reached $46.4 billion (about 67 trillion won), up 8.5% from a year earlier. Experts noted that to sustain the K-trend's growth in a rapidly changing global market, it is important to pair government support with ongoing crisis response and new content development.
◇ "K-fashion and beauty need stronger government support"
From January to November this year, Korea's cumulative cosmetics exports reached $10.361 billion (about 14.95 trillion won), surpassing $10 billion for the first time. They entered Korea's top 10 export items and emerged as a new growth engine for the country. But concerns are rising that the current domestic legal framework is heavily regulatory and that government support is lacking.
Kim Ju-deok, a professor in the Department of Beauty Industry at Sungshin Women's University, said on the 12th, "Recently, mid-sized and small corporations and indie brands in the cosmetics industry have achieved significant export results, but there are concerns about whether any brands will have a long run," adding, "Korea's cosmetics industry spends relatively little on research and development (R&D) compared with corporations in other industries with similar sales. Government support is needed for this."
Kim added, "I understand that cosmetics are closely linked to public safety and health, but the regulations are stricter than in other countries," and said, "Cosmetics is an industry where product image is important, and unless these regulations are eased, it will be difficult to maintain steady popularity in the global market."
Kim said, "So far, domestic cosmetics have largely grown through corporations' own efforts, and government assistance has been lacking," adding, "As the recent growth has drawn interest and the government has released plans to support the sector, if support follows through, K-beauty and fashion have even greater potential."
◇ "It's time to shift K-food to an aggressive trade strategy"
According to the Korea Customs Service, K-food exports hit a record high last year, raising its profile in the global market. From January to November last year, K-food exports totaled $10.375 billion (about 15.1464 trillion won), up 7.0% from the same period a year earlier. If December results are included, the annual figure is expected to surpass the previous record high of $10.663 billion (about 15.5669 trillion won).
However, some noted that there is heavy reliance on one-off content tie-in products such as "K-pop Demon Hunters" and an emphasis on processed foods like instant noodles. Another limitation is that many items face export hurdles due to food-related regulations.
Moon Jeong-hoon, a professor in the Department of Agricultural Economics and Rural Development at Seoul National University, said, "When people think of K-food, they think of snacks, beverages and ready-to-eat meals, but if a ready-to-eat meal has even 1 gram of meat, it cannot be exported to major markets such as North America, Europe, China and Japan. A representative example is the European Union (EU), which allows exports only of heat-treated poultry; beef and pork are not allowed," adding, "Korea's representative food culture is actually soup-based dishes. Because soup stock is made with meat, we are unable to export." Currently, domestic corporations that have entered overseas markets are choosing approaches such as building local plants to sell products that contain meat.
Moon suggested the government should resolve this through diplomacy. "Until now, Korea's basic strategy for agricultural and marine food imports and exports was a 'defensive strategy' of not accepting other countries' foods to protect our own," he said. "This strategy is holding K-food back just as it is ready to take off. It's time to shift to an offense-focused trade strategy." He added, "K-food's popularity will become sustainable only if it grows together not just with food manufacturers but also with the livestock industry."
He continued, "If regulations are resolved through diplomacy with trading partners so that even soup culture can be exported, K-food has strong potential to grow further in the global market," adding, "As K-food has gained fame recently, there are more cases where local corporations produce and sell items that are difficult for us to export. We cannot hand over markets we can preempt to local corporations."
◇ "We must sustain K-trend popularity with quality content and proactive promotion"
Experts also agreed that because the K-trend emerged from the success of content such as dramas and K-pop, quality content must continue to be discovered.
Jeon Mi-young, a research fellow at Trend Korea Company, said, "When something suddenly becomes very popular, there comes a time when people get used to it and the freshness fades. Domestic corporations need to continue responding to that," adding, "Domestic corporations have strong crisis response and planning capabilities. By tossing out themes and proposing new keywords, they are preempting issues before people feel tired or bored and managing that cycle quickly."
She added, "Since the K-brand boom began in food and beauty, there is a strong possibility it will expand into adjacent similar sectors. It is highly likely to spread into fashion," and said, "Also, it is now a time when you don't have to put 'K' at the very center. Instead, we should build a market where brands and trends coexist, competing on performance and ingredients alone to the point where it is hard to tell whether a product is K or local."
Seo Yong-gu, a professor in the Department of Business Administration at Sookmyung Women's University, said, "From the drama Winter Sonata to Korean dramas and K-pop, well known through BTS, content successes have raised overseas interest in domestic products," adding, "In particular, as the global consumer trend has shifted toward buying products used by celebrities and influencers, the influence of famous people has grown and the success of quality content has become more important." He continued, "Especially now, the global consumer market is difficult for corporations to control perfectly, and AI algorithms have a large influence. To be chosen by the algorithm, brand authenticity and an emotional narrative and story are essential."
Lee Eun-hee, a professor in the Department of Consumer Science at Inha University, said, "An online-offline linkage strategy is necessary. Online promotion via social media (SNS) should be paired with offline promotion that showcases K-culture at international events," adding, "Corporations are taking active steps, but government ministries need to step in directly and plan online and offline promotion." She added, "In particular, it is necessary to leverage K-pop idols in line with overseas consumers' needs and actively use popup-style plans that allow consumers to experience products directly," and said, "The key in the global market is to build steady touchpoints with consumers."