SOUTH KOREA’S NATION BRAND SPURS ECONOMIC ADVANCEMENT
Referring to a brand as just an “image” is an understatement. Brands create perceptions which influence a consumer’s decision to buy. That’s why companies like Coca-Cola and Starbucks persistently manage their brands.
This concept is no different for countries. While a nation’s brand is a perceived image of the country, it’s also an influencer of economic prosperity. For example, South Korea shares its cultural assets like Korean music with foreign audiences to shape its brand. This allows audiences to view Korea through a favorable lens and embrace the country, which impacts its economy.
Here are three ways Korea’s image demonstrates a nation brand’s economic impact.
Exports
For the past few years, Korea has invested in R&D for Asian skincare, positioning itself as a global standard in cosmetics. Products like Korean face masks took audiences by storm, attaching “high-quality cosmetics” to its brand. This caused a halo effect around its exported goods, bolstering support from foreign audiences. Korea’s customs service reported that cosmetic exports grew from $1 billion to $2.64 billion over five years. To date, Korea continues to enjoy this level of support with cosmetic exports now surpassing $6 billion.
Tourism
As positive perceptions of Korea surged, so has its tourism. One example of this is K-pop or Korean pop music. Popularity around K-pop influenced millions to view the country as a travel destination. A Korea Tourism Organization (KTO) survey in L.A. reported that 70% of respondents wanted to visit Korea after viewing the pop-culture phenomena “Gangnam Style”. Additionally, Korea’s Culture Minister reported that Korea saw an increase in tourism by 13.4%, crediting the Gangnam Style superstar PSY.
Foreign Investment
Aside from piquing consumer interest, Korea’s brand attracted billions in foreign direct investment (FDI). Last year, investments by US companies increased by 24.8% as they pursued partnerships and acquisitions in high-tech industries and tech start-ups. This is a result of Korea’s image as a home to high-tech innovations and tech giants like Samsung. In 2016, Bloomberg ranked the country as having the world's most innovative economy, embellishing Korea’s image for years to come.
Nation brands are more than just managing an image - the economic impact is unquestionable. In the case of South Korea, this means a competitive edge in exports, tourism, and FDI. However, as strong nation brands bring a variety of benefits, they require maintenance. Unmanaged nation brands are surface-level applications waiting to be smeared. When nurtured, they become powerful economic assets deeply rooted in a country’s identity.
This concept is no different for countries. While a nation’s brand is a perceived image of the country, it’s also an influencer of economic prosperity. For example, South Korea shares its cultural assets like Korean music with foreign audiences to shape its brand. This allows audiences to view Korea through a favorable lens and embrace the country, which impacts its economy.
Here are three ways Korea’s image demonstrates a nation brand’s economic impact.
Exports
For the past few years, Korea has invested in R&D for Asian skincare, positioning itself as a global standard in cosmetics. Products like Korean face masks took audiences by storm, attaching “high-quality cosmetics” to its brand. This caused a halo effect around its exported goods, bolstering support from foreign audiences. Korea’s customs service reported that cosmetic exports grew from $1 billion to $2.64 billion over five years. To date, Korea continues to enjoy this level of support with cosmetic exports now surpassing $6 billion.
Tourism
As positive perceptions of Korea surged, so has its tourism. One example of this is K-pop or Korean pop music. Popularity around K-pop influenced millions to view the country as a travel destination. A Korea Tourism Organization (KTO) survey in L.A. reported that 70% of respondents wanted to visit Korea after viewing the pop-culture phenomena “Gangnam Style”. Additionally, Korea’s Culture Minister reported that Korea saw an increase in tourism by 13.4%, crediting the Gangnam Style superstar PSY.
Foreign Investment
Aside from piquing consumer interest, Korea’s brand attracted billions in foreign direct investment (FDI). Last year, investments by US companies increased by 24.8% as they pursued partnerships and acquisitions in high-tech industries and tech start-ups. This is a result of Korea’s image as a home to high-tech innovations and tech giants like Samsung. In 2016, Bloomberg ranked the country as having the world's most innovative economy, embellishing Korea’s image for years to come.
Nation brands are more than just managing an image - the economic impact is unquestionable. In the case of South Korea, this means a competitive edge in exports, tourism, and FDI. However, as strong nation brands bring a variety of benefits, they require maintenance. Unmanaged nation brands are surface-level applications waiting to be smeared. When nurtured, they become powerful economic assets deeply rooted in a country’s identity.