Squid Game’s second season is the latest instalment of Korean culture’s economic success story – so what’s the secret?

The first season of Squid Game, the Netflix dystopian drama about the perils of capitalism and extreme wealth disparity in South Korea, was a huge hit. And now, the much-anticipated second series does not appear to have disappointed either.

With 68 million views in its first week, it jumped to the top of the streamer’s global top ten, ranking as its number one show in 92 countries. The series received a Golden Globe nomination even before it was released on December 26 2024. The cultural phenomenon of the “Korean wave”, or Hallyu, continues.

Aside from Squid Game, other recent successes include Bong Joon-ho’s 2019 film Parasite, about greed and class discrimination, which became the first foreign-language film to win an Oscar for best film. The K-Pop group BTS is considered by some to be the biggest band in the world, contributing around US$3.7 billion (£2.9bn) each year to the South Korean economy in exports, consumption and inbound tourism.

And this kind of economic impact is no accident. It is partly down to a 1993 government policy specifically designed to enhance South Korea’s global position by exporting cultural products. The idea was to increase the country’s “soft power” by becoming a major international exporter of entertainment.

Prior to this, South Korea’s economy had grown rapidly during the 1960s and ’70s under an export-oriented strategy led by large family-run conglomerates known as jaebols. For decades, the country’s exports were dominated by semiconductors, cars and consumer electronics from companies like Hyundai, LG and Samsung.

The rise in cultural exports started in the late 1990s, when Korean dramas were enjoyed initially in China and then other neighbouring countries. Thirty years later, the infatuation with Korean popular culture extends to movies, animation and pop music.

And it shows no sign of slowing down. According to one Disney executive, western studios are keen to benefit from the “gold rush” for South Korean content. Netflix alone is investing US$2.5 billion in the country’s entertainment sector.

Korean influence is also growing in areas like beauty and cuisine. International tourists travel to Myeong-dong, Seoul’s main shopping district, to bulk-buy cosmetics from outlets such as Olive Young and Face Shop, as Korea’s global beauty market is projected to reach US$18 billion by 2030.

Korean food such as kimchi, a fermented vegetable dish, is said to be the “new favourite” for culinary enthusiasts, as Korean restaurants open in major cities across the world.

Overall, the rise in South Korea’s global cultural presence has had a big economic effect. In 2023, exports related to Hallyu content and products amounted to around US$14 billion.

And Hallyu has an influence on people’s perception, too. According to research, people who consume Korean popular culture are more likely to have a positive image of the country and are more likely to visit. A separate study shows how this consumption reduces cultural divides and increases a sense of familiarity with South Korea.

K-power

Much of Hallyu’s success has been propelled by online platforms which provide an infrastructure for social interaction and enhance connectivity.

Who could forget Gangnam Style, for example – the 2012 music video sensation which became the first video of any kind on YouTube to reach 1 billion views. And BTS broke their own record when their 2021 release, Butter, was watched 108 million times in just 24 hours.

More recently, the 2024 song APT from South Korean singer Rosé and American singer-songwriter Bruno Mars, inspired by Korean drinking culture, has been streamed more than 823 million times.

My research with colleagues shows the online consumption of popular Korean cultural products, through “herding behaviour” – the social phenomenon of imitating others – has a positive impact on South Korean tourism.

But modern Korean culture is not just for foreign audiences. It has been described as a “source of pride and confidence for South Koreans”, and was even incorporated into recent protests demanding the removal of the country’s president, Yoon Suk Yeol. Organisers blasted out K-pop hits while demonstrators waved K-pop lightsticks, turning demonstrations into multicoloured musical rallies.

Hallyu, which started off as a tactic for soft power and economic influence, is now being used as a tool of political protest. But it has also been a remarkable success in its original goal of bringing the culture of a small Asian country to a global audience.

Strategic policies, combined with innovative use of digital platforms and sustained creativity, have turned South Korean culture into a phenomenon which benefits the country’s economy, tourism and international influence – and secured South Korea’s position as a cultural powerhouse.

Sameer Hosany does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.