There are a number of voices who blame digitization for having a number of negative effects on the music industry including a decline in album sales, copyright infringement, unfair royalty payments, and competition with foreign multinationals. Yet, the global emergence of Korean pop music or K-pop suggests a different narrative, particularly given that its growth was largely unexpected among industry experts. Understanding the key to its international breakthrough can thus produce meaningful lessons for the music industries of other countries for their own further take-off. This constitutes the focus for this paper. Digitization has influenced various sectors of the Korean music industry such as business, society, and consumers. It has also transformed the management focus of the industry from analog to digital, from offline to online, from albums to songs, from specialization to integration, from domestic providers to international suppliers, from audio sound to visual images, from possessing to accessing, and from limited integration to synergistic network. This signifies that embracing technology advancement can enhance the competitiveness of cultural industries.

This paper assesses whether Korean film policies, particularly protectionist ones, have been instrumental in the success of the Korean film industry. The conclusion is, surprisingly at a first glance, that protectionist policies have played an insignificant role. First, the import quota regime (1956–1986) limited the number of films to be imported, but not the number of Korean audience to see these imported films. Furthermore, the import quota system strongly induced Korean filmmakers to produce bad quality movies and theaters to avoid showing Korean films. Second, the screen quota system, from 1966 until present, has not been effective because imposing a mandatory number of days for screening Korean movies does not ensure that the domestic audience will watch these movies. Finally, the subsidy policy was barely noticeable before the late 1990s and is now too late and too limited to be credited for any significant impact on the success of the Korean film industry which began from the early 1990s. The results of this paper are robust enough to suggest to policymakers in other countries to review their own policies that advocate merely protectionism as a way to make a more attractive national culture.

: The Korean wave, which is the popularity of Korean entertainment outside Korea, is a fairly new phenomenon. Encompassing Korean dramas, films, and songs, it has been highlighted by international media outlets and scholars. Several prestigious newspapers and scholars attempted to explain the competitiveness of the Korean wave, but they have remained biased by missing, overemphasizing, or overlapping important success factors. To provide a more comprehensive and accurate analysis, this paper conducts a rigorous study on the competitiveness of Korean entertainment industry focused on Korean dramas and films with a comprehensive analytical tool, the generalized double diamond model. The results of this study provide evidences that the Korean wave is not a temporary phenomenon but a sustainable industry segment. For further enhancement of this important industry, this paper suggests useful implications, including international cooperation with other countries.