Abstract:
Korean Wave has become a global tremendous phenomenon in this modern with
several hits such as Psy’s Gangnam Style and Korean dramas. Through the Korean
Wave, the other business sector opportunities for various market sectors get the
benefits, especially Korean beauty products since Korean idols usually become the
beauty brand ambassador. Indonesia is one of the countries that exposed to Korean
Wave as well as Korean beauty due to the largest population in Southeast Asian
countries. The method of this research is by collecting the data from online
resources as well as primary data that received from Korea International Trade
Association Jakarta. This research aim to analyze the bilateral trade that affected by
Korean beauty products by using commercial diplomacy and cultural diplomacy
theory. Thus, by the existence of Korea Trade-Investment Promotion Agency
(KOTRA) in Indonesia as trade promotion organization and product placement
method in Korean dramas, turns out the high demand of beauty products and brands
decided to expand their stores in Indonesia and it affects the bilateral trade between
South Korea and Indonesia. The flow of trade also assisted by the existence of
ASEAN-Korea Free Trade Agreement and Special Strategic Partnership between
South Korea and Indonesia. Cosmetic trade continuously increases every year,
making a change in general trade and reached its peak in 2018 which reached more
than US$ 36 million. To sum this up, the existence of the government institution
abroad and trade policy, it influences the flow of trade between South Korea and
Indonesia.
