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BOK calls for active overseas expansion of content, other high-value exports

Published: 22 Jul. 2025, 17:50 Updated: 22 Jul. 2025, 20:16

This image, provided by Netflix, shows a scene from ″KPop Demon Hunters.″ [NETFLIX]

Citing the recent popularity of the animated film "KPop Demon Hunters," Korea's central bank on Tuesday called for deregulation and other measures to boost exports of animation and various high-value-added service sector offerings amid persistently low labor productivity.

According to a latest report by the Bank of Korea (BOK), nearly 98 percent of local knowledge-based service companies had relied solely on the domestic market as of 2021, while a mere 2.2 percent had any experience advancing into overseas markets.

In detail, 10.8 percent of companies in the game content industry had export experience, followed by 6.5 percent in the research and development sector and 4.3 percent in the video content industry.

"Despite their high growth potential, Korean companies remain passive in entering overseas markets. As global platform companies rapidly penetrate the domestic market, it is becoming increasingly difficult for them to defend their existing market share," the report stated.

"The recent success of 'Kpop Demon Hunters' demonstrates that the country's intangible cultural assets can resonate with global audiences. The key challenge now is how to industrialize these intangible strengths and connect them to export opportunities," it added.

The private service sector accounted for 44 percent of the GDP and 65 percent of total employment in 2024, but its labor productivity per capita stood at only 39.7 percent of that in the manufacturing sector.

The figure has remained at the 40 percent level since 2005.

Using the United States' 2021 service sector productivity as a benchmark of 100, Korea's productivity was at 51.1, well below the Organisation for Economic Cooperation and Development average of 59.9. Germany recorded 59.2 and Japan came in at 56, according to data from the BOK.

"Regulatory reforms and adjustments to relevant laws and systems are needed to flexibly accommodate convergent industries, given the rapid integration between the manufacturing and service sectors," the BOK said.

"Establishing an interministerial oversight system is also crucial for laying the groundwork, including digital infrastructure, standardization and data linkage," it noted.

Yonhap