Chaebolplex v. Indie Movies - The Sequel

According to KOFIC / KOBIZ, Korea's 2,870 movie screens recorded almost 220 M admissions last year, a 49% increase in ten years. That's enough to take over (30% more populated) France, where admissions gained only 11% over the same period, from 190 to 209 M. Korean and Foreign films have basically maintained their positions on the market: around 50/50 for the number of admissions, 28/72 for the number of films released, knowing that the biggest blockbusters tend to be local (only Avatar appears in the all time top ten, as #3).

The number of movies released exploded (from 380 to 1,765), which is not a guarantee for quality, but an encouraging sign for culture diversity*. Indeed, the big 'chaebolplexes' that control the market have at long last started to propose independent movies.

Which doesn't mean that Korea's indie movie ecosystem is better off.

When six years ago, chaebolplexes were forced to feature them following the 'Pieta' scandal, I worried that they would struggle to kick their bad, closed circuit habits (see "Saving Korean cinema... and even Chaebolplex"), and that's pretty much what happened.

Just a few significant events that followed the 2012 'Pieta Law':
- 2013: ten indie movie producers pool their efforts to create Little Big Pictures
- 2014: CJ Group launches CGV Arthouse (chaebolplexes create their own 'indie' theaters)
- 2015: it gets political when AHN Cheol-soo brings the spotlight on the cause, and indies push for laws similar to the 1948 Paramount Decree (the "antitrust case that ruled against big movie studios operating their own movie theaters"**)
- 2016: Netflix launches in Korea
- 2017: produced by Netflix, BONG Joon-ho's 'Okja' is boycotted by Korea's biggest theater operators
- 2018: IPTV takes over cable TV as main provider, controlled by the Big 3 (KT, SKT, LGU+), and 'chaebolplex' snatch exclusivities for indie movies away from 'independent art houses', even for re-runs.***

How can indie theaters survive, or compete with lavish complexes that in terms of diversity, contribute essentially to one of chaebolplex's core business models: real estate. There are so much new complexes Seoul can host, and the 'art house' alibi provides a perfect 'alternative' offer to developments that target culture-friendly elites.

Institutions like Seoul Cinema or Indie Space embody the resistance, but for how long?

'Smells like Seoul Cinema spirit' (20180517 - www.instagram.com/p/Bi4AYl9ll7H/?taken-by=stephanemot)

'not sure the one in the middle will be featured in a chaebolplex' (20121213 - twitter.com/theseoulvillage/status/279079561419960320)

• follow our #chaebolplex hashtag on Twitter

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* on this issue, read " Heralding cultural diversity - a stronger and more sustainable Korean wave" (2013)
** "South Korea’s Chaebol-sized Movie Problem"  (WSJ 20150130)
*** "Art house cinemas lose their exclusivity : As more indie films are screened at theater chains, smaller venues suffer losses" (KJD 20180706)

Korea revives the project of a fourth mobile license

According to The Korea Herald (May 29), the Korean government is considering reviving the project of a fourth Mobile Network Operator license as part of a plan to stimulate the market.

Is there a need for another 4G network? Korea is well covered with LTE to LTE-A, beefed-up locally through pervasive femtocells and WiFi. And the three incumbents don't want to sit on their laurels: Korea Telecom promised 5G trials for the 2018 Pyeongchang Olympics, and SK Telecom announced a partnership with Google on augmented reality ("T-AR for Project Tango").

Is there a need for more competition? It depends on the profile of the new player, and the impacts on a M-VNO ecosystem that, at long last, is biting into a pie still dominated by SK Telecom, Korea Telecom, and LG U+.

According to the Ministry of Science, ICT and Future Planning (MSIP), Mobile Virtual Network Operators were claiming a 8.8% market share as of April 21 (up from 2.9% in June 2012), thanks to prices on average 57% cheaper than the MNOs.

But it's not as if you had one fourth player with a 8.8% market share, big enough to contest the leaders on more profitable segments. Today, Korea has 27 M-VNOs, most struggling to make their first profit, and likely to never see it. Significantly, their number of subscribers started to explode when they targeted more discount-seeking audiences (the youth, Chinese migrant workers...).

A perennial candidate for the 4th spot is actually a consortium of M-VNOs: KMI (Korea Mobile Internet) revived their candidacy in October 2013, and defending the existing M-VNO ecosystem could be a stronger argument today. In December 2011, the Korea Communications Commission not only rejected KMI's bid, but also that of IST (Internet Space Time lost the backing of Hyundai Group at a critical moment). Note that the KCC also canceled the auction for the WiBro spectrum. I explained a few months earlier ("A Kbiz MNO ? SMEs vs Korea Inc") how the attempt by the Korea Federation of Small and Medium Businesses (Kbiz) to enter the market looked more like a lobbying stunt to push WiBro.

A much bigger fish could also seek the fourth license, with more brand power. Typically, CJ Group is already a major player in telecom, IPTV, or multimedia contents. It has the money to invest on new networks (Daum Kakao or Naver would need serious backing), the customer bases to leverage, and the contents to fill the pipes..., but don't bet on price wars with fellow chaebol on the juiciest segments. 
 
A true new entrant from overseas? Global MNOs know how difficult it would be in a country where foreign majors are seldom allowed to take or maintain leading positions (see retail for example: Carrefour and Wal-Mart already gone, Tesco on the back seat). But joining a consortium, or creating one remains a rare opportunity for international platforms to push their solutions in an otherwise locked Korean market. And nowadays, the dominant platforms do not necessarily belong to telecom operators...

Anyway, expect more lobbying ahead of the government's guidelines, expected by the end of June.

• Initially published on mot-bile ("Korea's fourth license reload"). 
• See also "Daum Kakao, Google Campus... Korean platforms on steroids", other posts related to innovation in Korea.

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* "Consortium to bid for 4th mobile carrier in S. Korea" (Yonhap News - 2013/10/08)

Saving Korean cinema... and even Chaebolplex

Evolution doesn’t teach us that only the fittest survive, but that even the strongest can’t survive when diversity is threatened, and that inbreeding is by no means a way out of extinction.

Last September, I stated my worries about cultural content diversity in Korea, particularly in a movie / broadcasting ecosystem dominated by chaebols ("Korean culture or Hallyu, Cultural contents or discontents"). And this morning, Korea JoongAng Daily published a focus on how 'Conglomerates direct Korea's film industry', which ended in similar calls for quotas supporting independent movies.

Data from the Korean Film Council (KOFIC) confirm the trend, the Korean market has become an oligopoly that all but banned independent movies from their multiplexes:

• In September 2012, the Big 4 claimed 93.1% of the distribution: 28.3% for Showbox Mediaplex (Orion Corporation), 24.2% for CJ EM, 21.0% for Next Entertainment World (the Twilight saga), and 19.6% for Lotte Entertainment
• Between 2008 and 2011, the top 3 CGV (CJ EM), Lotte Cinema, and Megabox (Jcontentree - JoongAng Group) raised their share of screenings from 62.2% to 86.7%. 
• 2 years ago, multiplexes devoted between 6.5 and 9% of their screenings to indie movies, and now they don't let them even reach 2% (of course never on prime time or prime locations):

Even KIM Ki-duk's award winning "Pieta" didn't get the exposure it deserved in multiplexes, in spite of excellent occupancy rates. And the victims are not only local indie productions: even international critic's darlings can’t make it there.

Yes, 2012 is a record year for Korean movies, and for the first time, the 100 M views barrier has been smashed. And of course the winners are well marketed, deja-vu blockbusters: 'The Thieves' (Showbox), 'Masquerade' (CJ EM), and 'A Werewolf Boy' (CJ EM), respectively a Gangnam Style 'Ocean's Eleven', a Joseon-times 'Dave', and a more elaborate 'Nell'-'Wolf' bibim. Needless to say, the government is not considering any regulation to tame what I call "chaebolplexes": the "Pieta Law" mentioned in the article sounds like charity for art-house theaters, and absolution for big complexes.

The big fishes think they're protecting themselves. As if an indie success could threaten them, or alter the overpowering image they project to their audiences. I'm using the plural, because these guys target not only movie goers, but also the developers who consider a multiplex to sex up their latest project (build a multiplex and they will come - Who? Why, the S.P.A.s and family restaurants those investors couldn't convince to sign for their mall, of course).

Make no mistake: the recent boom in multiplexes is not just about conglomerates claiming the lion's share of Korean cinema after noticing the first national blockbusters at the turn of the millenium - you're in Korea, it's the real estate, stupid!

And just like with coffee franchises*, you don't always consider supply & demand issues before opening shop. Except the entry ticket is much higher, and operators have to know a thing or two about yield management. And they'd better know where they're going when they multiply the number of big screens at the very moment movies get available anywhere anywhen anytime.

At the "hardware" level, they want to make the moviegoer's experience special: even your latest home entertainment system can't propose you a full "4D theater" experience, and even your comfiest la-z-boy can't beat the new "lounge" reclining seats (better than first class travel, twice the normal fee). But Starbucks learned the hard way that offering free wifi everywhere didn't mean anything if they forgot their core business: offering good coffee.
 
Korean operators are the only ones in the World who seem to believe the multiplex concept can survive without content diversity. It's exactly like operating a hypermarket and referencing only 4-5 items: that's not only bad business and terrible risk management, but also the very negation of your customer and your own future. You can't at the same build more theaters and reject diversity, get viewers addicted to blockbusters and expect high occupancy rates in the future. You think you're driving generations to your theaters, but you're killing the golden goose. You think you're building a market, but you're milking it at all levels without any vision whatsoever. And if you think you can guarantee diversity all by yourself, even by betting on your closed circle of fellow majors, you should know it simply doesn't work, particularly not in this country.
 
The inability to operate even partially open systems is a key factor of failure for Korean chaebols. Look how SK Telecom lost its global leadership in innovation in the early naughties when it sticked to a doomed ambition of controling the whole value chain instead of evolving and nurturing a more open and sustainable ecosystem. Look how Samsung lags behind in soft power and value aggregation beyond in-house solutions. Look how the Korean government struggled when it came to bringing together conglomerates and small players in the innovation process that could guarantee Korea some competitivity in the future. Look at those innovative start-ups wilt as soon as they're absorbed by organizations unfit for the new millenium. And look at those absurd award nights, when, every year, each major TV channel distributes glitzy prizes among its own drama shows in a parody of competition.

So yes, regulations are needed, and yes, truly independent movies (i.e. not from your usual masqueraded subsidiary or outsourced slave) must be given fair chances in multiplexes, including on prime time and in prime locations. Just like broadcasters must nurture the indie ecosystem. It will spur creativity and competitivity across the whole industry, help it source new talents, reach new viewers, and anticipate evolutions. Majors cannot achieve sustainability and international competitivity without it.

But the real change must also come from the chaebol themselves, and I'm sure that, in each of their top strategy teams, you can find at least one person who's perfectly aware of the fact that they can't postpone the cultural revolution anymore.

The first one to open up will be the true leader.

 
Seoul Village 2012
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* see "Brews and bruises" followed by "500 m, 80%, 100% urban crappuccino"

Korean culture or Hallyu, Cultural contents or discontents

Ahead of last week, I planned to write one post on each one of these 3 events...

• Tuesday, September 11: the 7th Seoul International Media Art Biennale* starts at SeMA Seosomun and across the city under a screamingjayhawkinsian theme: "Spell on you":

 

• Thursday, September 13: DMC 10th Anniversary International Symposium and 2012 Seoul DMC Culture Open. Korea's main multimedia and entertainment cluster will succeed once all majors have joined Sangam, provided they accept to share value with truly independent start-ups**:

• Friday, September 14: conference at the Institut Francais de Coree, "Strategies de globalisation du cinéma coréen et Hallyu" ("Globalization Strategies for Korean cinema and Hallyu") with French thinker Guy Sorman and Korean movie brain KIM Dong-ho (actor slash producer slash founding director of PIFF/BIFF/Busan International Film Festival), moderated by RYU Jin-lyong, Director of the Hallyu Knowledge Center at the Catholic University of Korea. Ever the optimistic "free-marketer", Sorman believes in the power of individual creators. Kim knows better and understands what it takes to support culture. Note that France is the third market for Korean movies after Korea and the US, and the place where the first major K-pop concert in Europe was organized (SM Entertainment with the support of the Korean government). Of course, everybody agreed on the irrelevance of "Hallyu" / "Korean wave" as an umbrella brand for Korean culture, and on these evidences:
  - you don't want to watch a Korean movie because it's Korean, you want to watch good movies
  - culture and nationalism never mix well

... not to mention this fourth event, which I felt no need to write about...

• Saturday, September 8: KIM Ki-duk's "Pieta" wins Golden Lion for Best Film at la Mostra in Venice. The first time a Korean movie ever wins a top prize in a major festival. Park Chan-wook's "Oldboy" would have won the Palme d'Or in Cannes in 2004, had there been no US elections later that year: Michael Moore's "Fahrenheit 9/11" clearly received a push to balance Bush-Cheney's Weapons of Mass Disinformation.

... or of course this summer's hit, about to break the 200M view barrier on YouTube:

• Psy's horsing around satire of "Gangnam Style" (as far as I'm concerned, it's still the bicycle, and Stephane Jongno Style - 스테판 종로 스타일!):

I eventually decided to serve all 5 at once, "bibim" (bibim pop culture?). Not because I'm a lazy fella, but because together, they tell a lot about the strengths and weaknesses of Korean culture today.

The point? Korean culture is very much alive and kicking, thank you, and there are many reasons to believe that the future is even brighter, but the ecosystem is not totally sound, and it could become even stronger, more creative, and more sustainable.

Before moving to Korea from France, 21 years ago, I had a tough time reaching for Korean culture (or rather "Korean civilization", as Sorman is right to emphasize). I had the chance, as a kid, to own a book of traditional Korean tales, and as a student, to have met a few Koreans and expats who'd lived there. But even in Paris, home to "Langues O" or Musee Guimet, you had to dig deep. Heck. Even after landing in Seoul I felt frustrated: the first day, if it weren't for that courtesy visit to the office downtown, I wouldn't have caught a glimpse of Namdaemun in that - already back then - sea of high rise buildings.

Now, Seoul's cultural assets are much more highlighted. And now that the whole world is one click away, a Psy can Gangnamstylize tens of millions of people within a few days. Koreanity / Koreanhood / Koreanness / Koreanitude reaches beyond Korean nationals and expats, and millions declare unconditional love for the country even without having set foot in the Peninsula. But precisely, because the whole world is one click away, the fad can pass, the wave recede, or even turn into something negative: if a wavelet can be cute, a tsunami is rarely welcome.

Consider this: the Korean movie industry partly owes its boom to Hollywood. As a reaction to US lobbies who pushed harder into the country, it received a support similar to that of cinema in France, and it's no wonder both countries boast strong market shares for local productions. So much for the "invisible hand" of the market, Mr Sorman.

Anyway, Korea is progressively emerging. If not as a consistent global player, at least by sending more often visible signals in most cultural fields. To name a few:

- Language. At the same time the most important cultural asset for any people, and the most challenging task for Korea (even Koreans have a tough time mastering this beautiful tool). The trend is obviously very positive, with a boom in the number of people studying the language. But to go even further, pedagogy must improve, and it will necessarily as the base grows. And it is essential to reach beyond the minority target likely to get involved and learn the language. For that, Korea can leverage key assets, and must raise the awareness of Hangeul, a linguistic wonder, and Tripitaka Koreana, also a technological marvel... preferably a more subtle way than the Hunminjeongeum Society way***. Korean vocabulary must also permeate other languages, as naturally and peacefully as possible. Such popular culture as music is a good entry point (the "style" in Psy's title is relevant for the song but a missed opportunity for that purpose), but why not start by harmonizing the spelling of popular foods? Which brings us to the second domain...

- Food. I won't repeat my usual pitch**** on this vital dimension of Korean culture, arguably its best chance of shining durably. The globalization of Korean cuisine is now clearly identified as a major project, and Korean "brands" are getting more visible (dishes, industrial products, ingredients, restaurant chains...), but the political will doesn't always translate in tangible results. Among the most interesting "quality" trends: the rise of slow food and 'appellations', the invitation of world chefs to discover and adapt Korean cuisine and its ingredients... The future lies in the hands of amateur cooks across the globe, and on millions of palates, far beyond those of connoisseurs. And yes, street foods are as important as the finest dishes.

- Land. Korea is at last becoming a touristic destination, and every year visitors discover new dimensions beyond K-drama hotspots and UNESCO landmarks. From Boryeong Mud Festival to Temple Stay, the whole spectrum is covered. All major international editors have now produced guides, and the literature about the country has boomed everywhere. I can't believe the number of magazines and blogs covering every dimensions of Korea. When I started this excuse for a site, I would never have dreamed to see a blog devoted to Seoul subway station neighborhoods (the excellent Seoul SubUrban - seoulsuburban.com), or so many sites gathering so many great pictures of Seoul's fascinating alleyways. And like everywhere else, the democratisation of SNS, imaging tools, location based services enabled an always on process of mapping, recording, tracking - another reason why, for instance, I don't need to post about restaurants anymore. 20 years ago it was almost impossible to find pictures of old Seoul, and now the city does a terrific job at compiling its archives (see "Seoul Through Pictures 6", "Seoul from above : 40 years of archives soon available"...). I'm also glad to see Seoul city's official Facebook page move progressively away from the K-pop bubble and propose series of photos showing all different aspects of the city, even less glamour ones.

- Music. Saying that The Noraebang Nation loves music is an euphemism. But it's significant to notice the differences between "artisans" and "creators": on one hand world class musicians, directors, and voices, on the other few composers or writers really well known abroad. Personally, my favorite Korean song is LEE Mi-ja's "동백아가씨" ("Dongbaek agassi"), a trot that would sound corny as hell if it weren't for LEE's haunting voice. Of course there are great composers and writers, but vibrant democracy activist anthems belong to the past, and if the indie tradition remains, that side of Korean culture is not really well known overseas. Korea is nonetheless becoming a place where important things happen, with a vibrant rock festival scene, and systematic stops for the world tour of top names, from Lady Gaga to Robert Zimmerman (see "Bob Dylan knock knock knockin' on Seoul's door"). Mind if I don't mention K-pop? Actually nowadays, many K-pop hits are composed by non-Koreans - unlike Seo Taeji's "Nan Arayo!", a hit that crossed the frontiers long before the nip and tuck factory (SM Entertainment, YG Entertainment, JYP Entertainment) started mass producing dancing clones for export markets. Anyone can make it on YouTube and the success of PSY is a refreshing break, but this virtual horse rider does belong to a major stable.

 

- Performing arts. Definitely a strong point for Korea, particularly when you mix dance and voice. From Korean drums to Nanta, from mask dances and shamanic 'gut' to b-boy, from Pansori to K-pop... Yes, that's where I put K-pop, a popular kind of performing art where dance and surgically enhanced masks matter more than music itself*****. Even RAIN is better known for his looks and dance than for his songs, which he writes himself. Note that if the country can boast a strong tradition of festivals nationwide, it has not yet become a place where international artists create major works. It shouldn't be long though, and not just for a question of infrastructure (see previous episodes of the Seoul opera drama).

- Plastic arts. Forty years later, PAIK Nam-june remains the country's only artist with a global star status, and he was not recognized home until the dictature he fled fell. But many creators deserve critical acclaim, Seoul and Korea are a place to be (see "SeMA to block blockbusters"), and there's a lot of money around. Of course, as is too often the case with contemporary art worldwide, outsiders have a tough time getting their chance. But the ecosystem seems very strong, and all bases are covered: young talents, galleries, museums, patrons, exhibitions... And creatively speaking, the tradition-modernity continuum is perfectly working. 

- Cinema. Hallyuwood has never been stronger, and its future headquarters, the DMC, is not even fully operational. BIFF contributes to fuel the influence of an emerging Asian champion. Popular filmmakers and actors are getting international recognition (Park Chan-wook, Bong Joon-ho, Choi Min-sik, Song Kang-ho, Jeon Do-yeon...), even if it's a total outsider who caught the spotlights this year: KIM Ki-duk has always been rejected by Korea and recognized by Europe. Korean auteurs regularly receive critical acclaim in international festivals, and there seems to be room for everybody. Yet the system is dominated by very strong players who sometimes deprive creators from their authors' rights, because they're simply used to take all the value, not to share and nurture it.

- Literature. With SHIN Kyung-sook's "Please Look After Mom", Korea now holds an international bestseller. A silver lining in a country plagued by an education system that destroys creativity and all apetite for reading "non-useful" stuff (see "Seoul village libraries"). Among the interesting trends: more visibility for national treasures, a renewed interest for major XXth century authors...

- Media, Broadcasting. Korean media are not yet recognized as major global players, but media concentration has considerably increased under LEE's presidency, and traditional Korean broadcasters have gained visibility overseas, in particular with Arirang and KBS World, sending regular waves to the most distant shores. Among potential global powerhouses, CJ Group can leverage a full control of the value chain at home (production, distribution, broadcasting,...). The quality of contents is an issue: K-dramas are more consumer goods than timeless masterpieces; good exports in the short term, liabilities for the image if nothing comes next. The Land of Netizens has brought major innovations in the online media landscape (ie Ohmynews, Cyworld), but always struggled when it came to build truly international platforms.

- I could go on for years. Among other dimensions:
. Sports. The successes at the Olympic Games, the World Cup, or golf tournaments are fine, but Taekwondo played a very important role in the diffusion of the culture. I remember my surprise the first time I heard all the Korean words my teenage nefew learned in France along with the sport. Sports was also the medium that accelerated a minor yet significant cultural change: Western newscasters were criticized for not pronouncing Korean names correctly, and the right order prevailed at the turn of the millenium.
. Games are another interesting entry point. Unfortunately, the popular MMORPG invented in Korea, Lineage, has no reference to Korean culture whatsoever.
. Intangible assets. Korea protects its Great Masters, but a little bit too much. The cult of "wonjo" ("original") is a drag for the evolution to new levels, and the old masters are idolized to the point they have no contact with younger talents nor time to teach and pass the knowledge to the next generations. Han-dicrafts are han-dicapped.
. Architecture. The ondol and hanok revival also reaches beyond borders, and old techniques are successfully adapted to modern architecture. All the big names of architecture have produced one or several buildings in Seoul, but Korean architects are not famous overseas. Except for some interior design and a few really creative people who were allowed to toy around on a smaller scale, no wonder if you consider most landmarks.
. ...

Of course, all this is very subjective, selective, reductive, but the trends seem clear: globalization is under way, but more could be done to boost diversity and creativity, and to develop pedagogy / awareness / opportunities for the public.

Among the things I'd like to see:
- a reform of education (see previous posts)
- more sub-titles for Korean movies: Seoul is multiplying foreigner-friendly theaters and that's great, but with IPTV all Korean movies should be available with this feature. I'd watch ten times more Korean movies if this simple revolution happened.
- more context in the promotion of Korean contents, an historic perspective, keys for neophytes to visualize the cultural continuum
- guarantees for authors and creators: scenarists should be credited and keep their authors' rights, artists should get the fair payment for their work, not just feel grateful for being exposed.
- and most urgently, a licensing system that specifies the duties of broadcasters for cultural diversity. If you zap channels on your TV, all movie channels air the same kind of popular action movies and the pedagogy cannot be done, the public is not even aware of the existence of other contents. And it should not only a matter of what but a matter of who: major broadcasters should be prevented from using solely their own catalogue, and even finance independent creation as is the case in France. There's no other way of guaranteeing actual cultural diversity, and of course a sound and balanced ecosystem.
- ...

Seoul Village 2012
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* a.k.a. Mediacity Seoul (20120911-1104 - see mediacityseoul.kr)
** see among other posts related to the DMC: "Seoul Digital Media City Tour" (July 2010), "DMC aims at Tinseltown - welcome to Hallyuwood !" (February 2011), "DMC at full throttle - Songdo from Sim City to Sin City ?" (April 2011)... Note that SMG wants the buzz to move to the other side of the Han River, towards its Magok District project in Gangseo-gu.
*** see "Hangeul exports to Indonesia subject to dumping?"
**** see "Korean Cuisine Aiming At World's Top Five. China is watching"
***** and a non-sustainable business as it is - "K-popping bubbles"

---
UPDATED 20120918 (typos!!! and links)

Dice are broadcast

December 1, 2011: today, 5 new networks started broadcasting on Korean TV.

Licenses were awarded last year, without any surprise since the dominant (and rather conservative) daily newspaper groups claimed all the four spots granted for general channels:
. jTBC (channel 15) for JoongAng Ilbo, clearly the most ambitious 'newcomer'. The brand echoes the historic TBC channel founded by the family and disbanded under Park Chung-hee, and the group's J series (reminder: the broadcasting and magazine units have recently merged into Jcontentree). As we saw earlier, this group intends to become a multimedia powerhouse, and if it produces successful contents (eg millions spent on dramas), it can leverage existing ties with most international majors.
. MBN (channel 16) for MBN. According to what I saw today, Maeil Business Newspaper will make the most of its scenic view on Namsan and its Hanok Village, just like YTN does with its unique view on Seoul Station.
. Channel A (channel 18) for Dong-A Ilbo
. TV Chosun (channel 19) for Chosun Ilbo. The group will target an older audience than jTBC, and I hope they will aim for quality.

The fifth license was for an all-news channel, and Yonhap News Agency (News Y, channel 23) was unsurprisingly chosen to rival its former subsidiary YTN.

The market seems already saturated: the overwhelming majority of Korean households subscribe to pay TV on cable, IPTV, or satellite, receive hundreds of channels, and are heavy users for all new sorts of screens. Many players will fold, and KBS and SBS will necessarily take a hit, but the aim of the game was elswhere:
- on the defensive side: helping struggling but friendly newspaper groups as smartphones and tablets accelerate the substitution of paper
- on the offensive side: South Korea lacks global multimedia majors, and now jTBC joins CJ as a top contender.


Seoul Village 2011
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DMC at full throttle - Songdo from Sim City to Sin City ?

Remember our parallel between Seoul Digital Media City and Incheon's Songdo International Business District* ? Both project have been advancing since, with Songdo building everything from scratch, and the DMC enjoying many transfers from other districts.

Even for education : the Japan School in Seoul moved from Gangnam-gu to the DMC in Mapo-gu, while of Chadwick International School in Songdo was a creation. To be fair, Songdo also benefited from a major transfer with Yonsei Songdo Global Academic Complex (SGAC), and the DMC has already created many original landmarks as well.

Once again, the Songdo project is much bigger and complex to fill, even after signing such majors as Samsung (ie recently for a biopharmaceutical unit). The local press made a fuss about the recent visit of Vegas casino operators, and Grand Korea Leisure, who operate 7 Luck Casino in Seoul, are considering Jeju or Songdo for a second spot... A new Macau much closer to Shanghai and Beijing ?

Meanwhile, leveraging on Seoul Metropolitan Government's determination to create an international multimedia cluster**, the DMC recently received the confirmation from seven major multimedia groups, including JoongAng, back to the broadcasting arena with growing ambitions. Of course, JoongAng Broadcasting Corporation (JoongAng Media Network) already operated Cartoon Network, J Golf, or Q Channel, but the group lost its leadership after the Tongyang Broadcasting Company breakup (note the new entertainment channel brand, jTBC, as an echo to the pre-1980s). The group also purchased CINUS theaters via Isplus (Ilgan Sports).

Korea's biggest media group already moved to the DMC a long time ago : CJ E&M (CJ Entertainment & Media, formerly O Media Holdings) now regroups all the chaebol's media assets, creating a major in music (Mnet, CJ E&M Music.Live, FNC Music, Good Concert, Jisan Valley Rock Festival, Global Gathering...), movies (CJ Entertainment, CGV...), media (CJ Media, On Media, OCN, chCGV, Story On, tvN, OnStyle, NGC Korea, XTM, Olive, CJ O Shopping, CJ Internet...), and games (CJ E&M Games, BiCore, Netmarble...).

Yet the competition is not just national anymore. And there too, Seoul and Incheon are definitely putting more chips on the table...

Seoul Village 2011

* "Seoul Digital Media City Tour"
** see more recently "DMC aims at Tinseltown - welcome to Hallyuwood !".

CJ Group announces BBGO, an international bibimbap restaurant chain

I expected CJ Group to act as a leader in the promotion of Korean cuisine overseas, why not by leveraging on such assets as Cafe Sobahn, a creative bibimbap concept (see "Korean food aiming at Top 5").

At last, they seem to be willing to deliver the goods : CJ Group announced the launch of a new bibimbap restaurant chain in the US (Los Angeles), China (Beijing and Shanghai), and Singapore. A meal would cost around USD 10, positioning the chain in the family restaurant bracket, but well above fast food restaurants.

Frankly, the brand comes as a disappointment : BBGO (pronounced bibigo) evoques cheap BBQ rather than quality bibimbap... Less fun than that BibimBar in NYC. Maybe BBGO is just the code name : .com URLs are taken for bbgo, bb-go, bibigo, and even bibimgo.

Anyway, that's a major improvement from CJ Freshway's "Welly&", unarguably the Ground Zero of branding. I hope the same will be said about the food and atmosphere : "BBGO" could become an interesting entry point to Korean food.

Bibimbap makes perfect sense : a typically Korean dish, sound food, infinite ways of combining flavors...

Furthermore, CJ starts with "friendly neighborhoods", which could help fine tune the concept before going truly global.

Wishing them the best,
Seoul Village 2009

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ADDENDUM 20091207

Elsewhere on the value chain, Korea Agro-Fisheries Trade Corporation and NJ based Rhee Bros. Inc. signed a deal to allow more Korean "farm and processed food products to be sold throughout the United States" ("Korean food to reach more U.S. stores" - Yonhap 20091207).

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ADDENDUM 20120731

bibigo(es) global and opens its first restaurant in London, near Oxford Circus.