Three strange scenes in K-culture

Yang Sung-hee
The author is a columnist of the JoongAng Ilbo.

Korea prides itself for being a content powerhouse. But a closer look begs the question of whether it is genuinely keen on building its soft power.

Italian scouts at the 2023 World Scout Jamboree in Saemangeum cheer during the “K-pop Super Live” performance at the Seoul World Cup stadium in Mapo District, western Seoul, on Aug. 11. [JOINT PRESS CORPS]

Despite the K-pop glitz, the country does not have a decent concert venue to host global superstars. These days, Korean and foreign performers cannot find a stage big enough for their crew and fans, as the 45,000-person capacity Jamil Olympic Stadium will be closed for renovation until the end of 2026. Smaller alternatives — such as the 25,000-seat KSPO Dome, formerly the Olympic Gymnastics Arena, and the 20,000-seat Sky Dome used for baseball games — are also under construction. That’s why Seoul authorities had to hastily arrange the closing ceremony for the 25th World Scout Jamboree at the Seoul World Cup Stadium in Mapo District, western Seoul, after a shameful evacuation from its original campsites in Saemangeum, North Jeolla, regardless of strong protests from football fans who feared damage to the grass field — all due to a lack of other options.

The only venue in Korea capable of accommodating an audience of more than 10,000 is the KSPO Dome. The much-anticipated Taylor Swift concert in Seoul was never even scheduled after four shows at the 50,000-capacity Tokyo Dome as a part of her Eras Tours earlier this month — largely due to a lack of venues. Japan is home to 40 arenas that can accommodate more than 10,000 people. Most countries use sports arenas for performance stages and outdoor events like the Spurs’ Stadium that holds 62,850 in London, the home of Tottenham Hotspur, captained by Korean football star Son Heung-min.

Having a decent music arena has long been the dream of the K-pop community. Inspire Arena, holding 15,000, opened last year on Yeongjeong Island, Incheon, and several venues with 10,000 to 20,000 seats are under construction in Seoul and nearby Gyeonggi. But it will take time for them to be ready for concerts. Korea lacks the hardware to meet its global software reputation in K-pop. Deficiency in concert infrastructure is a serious shortcoming in the tourism context, given the synergy effect of live stage performance. According to the Korea Creative Content Agency, global live music ticket sales topped $25 billion in 2023.

Policymakers also cannot keep up with the advancements in content. A bill proposed by the Ministry of Culture and the National Assembly to protect and support creators was so sloppily enacted that it is feared to do more harm than good. The so-called Culture Industry Fair Distribution Act, concocted after the suicide of the cartoonist behind “Black Rubber Shoes,” listed 10 provisions defining “unfair practices” in the culture industry. But the act has failed to pass the Legislation and Judiciary Committee of the National Assembly amid the controversy over overlapping and excessive regulations.

Critics point out a lack of understanding on digital content despite the benign intention of the bill. At first glance, the provision banning the shifting of the marketing cost onto artists seems aimed to protect creators. But in reality, the provision clashes with the reality where free access to early series by creators is a common practice in the e-content market to help new artists successfully debut. The Culture Ministry agreed to reflect the opinions of the industry in the provision.

Misunderstanding of platform operators on their merger and acquisition motives toward small content players is another drawback. The court recently rejected the prosecution’s request to arrest Kakao Entertainment CEO Kim Seong-soo and the company’s strategy chief Lee Jun-ho for embezzlement for acquiring a drama production company at an allegedly overvalued price of 40 billion won ($30 million). The prosecution suspected the Kakao executives had inflated the acquisition price to benefit the studio. But the court found room for a conflict of interest between criminality and damages.

The prosecution wanted to make an embezzlement charge without taking into account the features of the contents industry to invest in the future value of creators. A producing house’s value can go up depending on its holdings in intellectual properties that are not reflected in accounting books. Some can suspect why Kakao had paid so much for a production company in financial ruins. But many promising production companies turned out well with blockbuster products thanks to outside investments. For instance, the drama production company last year reported an annual revenue of 40 billion won through several hits, including tvN series “Castaway Diva” and the “Worst of Evil” on Disney+.

Though the prosecution’s investigation lost steam after the court’s rejection of an arrest warrant, it could have thrown cold water on M&A activities in the contents market, a crucial element for the culture industry. Ironically, Korea has a goal to become the world’s fourth largest content provider.