The Korean Wave From a macroeconomic perspective

Abstract

South Korea is the first Asian tiger after Japan and in less than 70 years was able to move from newly independent nation to first-world country. The purpose of this research will be to highlight how a politically disadvantaged country has managed to become a powerful international player relying consistently on its resourcefulness, its people and its strengths. South Korea has in fact only ever used its “soft power” to achieve this position on the international scene. Focusing on the sources of this soft power and the main determinants of its economic development, this thesis will explain the phenomenon called “Hallyu”. Also defined as “Korean Wave”, the Hallyu describes a growing popularity and international interest toward Korean culture that boosted Korean exports and allowed the county to flourish. Particularly this work will observe South Korea’s most important industries that have made this phenomenon possible and at the same time continue to be fueled by it. Case studies of Samsung, Hyundai and KIA Motors will further support the argument of Korean industrial development. Finally, this piece of research will expose the doubts surrounding a possible end of the Korean Wave and the reasons that could disprove such claim to draw a comprehensive picture of the phenomenon.