DIGITAL TRANSFORMATION OF THE KOREAN MUSIC INDUSTRY AND THE GLOBAL EMERGENCE OF K-POP: INTERPLAY OF EXTERNAL AND INTERNAL FORCES

This study analyzed the unprecedented growth of Hallyu, also known as the Korean wave, responsible for propelling Korean pop music, or K-pop for short, into the global arena. The international expansion of K-pop did not occur by accident. Rather, it resulted from strategic planning and business execution created and carried out by Korean entertainment agencies and supported by the government that saw its potential to promote Korea by exporting entertainment. At the same time, external circumstances such as the rise of social media created a wide array of opportunities for K-pop to widen its global reach and appeal. Therefore, this research explored the interplay between external circumstances and organizational strategies that contributed to the global circulation and popularity of K-pop. Quantitative methods were applied to measure and assess the international recognition and global spread of K-pop. Next, a systematic approach was used to identify and analyze factors and forces that have important influences and implications on K-pop's globalization. The analysis was based on three business environment levels: macro, operating, and internal. First, PEST analysis identified the critical macro-environmental factors, including political, economic, socio-cultural, and technological. Second, the external environmental analysis examined the prominent Korean entertainment businesses' global plans for transforming K-pop into a successful global business. Finally, the researcher identified all of the key valuecreating activities in the K-pop industry's value chain, ranging from talent acquisition to consumer relationship management, and assessed how these activities had propelled K- pop's global success. Results formulated from the data gathered showed that the respondents’ perception of the K-pop phenomenon is that it is South Korea’s greatest export worldwide, consisting of a fusion of synthesized catchy and hook musical melody, sharp synchronized dance routines, and fashionable and colorful outfits on video that has become a global sensation through a viral global audience network that is part of the Korean Wave, also known as Hallyu. Meanwhile, the respondents have a strong level of awareness on the international popularity and global recognition of K-pop through social media platforms, such as YouTube and other search engines. The factors and forces that systematically influence K-pop’s globalization based on the three levels of K-pop’s business environment are the macro, operating, and internal environments. In the macro environment, K-pop is influenced by user engagement and participation, strategic partnerships with major record labels, a global vision, and the Korean entertainment companies that develop globalization strategies. In the operating environment, K-pop has talent agencies that recruit, contract, and manage talents, entertainment companies that promote talents and distribute albums, keep abreast with globalization, navigate the online environment, and capitalize on techsavvy audiences. Finally, in the internal environment, Korean entertainment companies have a global capability to scout, recruit, train and develop talents and provide strategic managerial skills that deliver value to K-pop consumers. Political, economic, socio-cultural, and technological factors influence the potential and prospects of the digital transformation of globalizing K-pop. Among the political factors are the strong coordination between the entertainment industry and the government to promote K-pop, non-interference and non-censorship of K-pop, and the government's role in influencing the Korean music industry. Lastly, the respondents’ perceptions of how each value-creating activity contributed to Kpop’s success in the global market, ranging from talent acquisition to consumer relationship management, and assessed how these activities had propelled Kpop's global success.