As “green growth” becomes more important, interests in the culture industry which is highly value-adding, eco-friendly, and job-creating have increased. China has paid much attention to the culture industry as a new engine of the sustainable growth. As China is expected to stand with U.S. and Japan as a big market for culture industry, Korean firms have stronger interests in entering China’s culture industry.
Specifically, Shanghai is one of the regions that have witnessed rapid growth in culture industry. The city’s development of culture industry has generated extensive economic and social spillover effects to nearby regions and the potential for further growth in Shanghai seems to continue in the future. Examining the experience of Shanghai, our study provides implications for Korean firms which have prepared for entry into China (including Shanghai) as well as for the Korean government which supports Korean firms.
This manuscript is organized as follows: In Chapter 1, we provide research background, motivation, summary of prior research, and research methodology. In Chapter 2, we introduce the current snapshot for culture industry in Shanghai and analyze what is ongoing between Korea and China (Shanghai). The dynamic growth for culture industry in China has been explained broadly by three reasons. First, Shanghai municipality has attempted to restructure the culture industry with varying approaches; second, specific types of ownership are dominant in each sub-industry and; third, Shanghai residents have been strongly interested in consuming the cultural goods. In Chapter 3, we analyze the policies to promote culture industry, which were designed by Shanghai municipality, and examine cases on cooperation between the local firms and foreign firms. Shanghai municipality has been active in development of culture industry through financial supports, construction of culture industry complex, and building of cultural infrastructure. In addition, the leading Chinese firms in Shanghai such as SMG, CMC, Shendi, Shanda, SFG, or SSCEG highly welcome global cooperation. Foreign firms have entered the culture industry in Shanghai by establishment of joint venture, although few joint ventures are found.
Finally in Chapter 4, we assess the current situation and the direction for culture policy in Shanghai and discuss implications for Korean firms and government. We also address limitations for this study.