BEAUTY AS A NEW TOOL OF DIPLOMACY IN 21ST CENTURY: A CASE STUDY OF KOREAN BEAUTY AND ITS INFLUENCE TOWARDS SOUTH KOREA AND INDONESIA BILATERAL TRADE

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.