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The Power of Cross-Border Viewership: Building Intangible Capital and National Competitiveness
- Author Jiheum Yeon
- Series325
- Date2025-09-15
Debates on Korea’s digital economy often focus on how to defend domestic firms from global platforms. But the real challenge is not defense—it is expansion. In the 21st century, the scarcest resource is time and attention. In the past, these were viewed mainly as limited resources to be allocated by consumers. Today, with advanced digital technologies—powered by AI and big data—platforms extract valuable insights from user activities and feed them back into global digital value chains. In such an environment, success depends not only on attracting domestic customers but also on securing audiences worldwide. In this sense, cross-border online viewership is not just traffic. It is the foundation of data capital, customer capital, and brand equity—forms of intangible capital that ultimately shape a nation’s digital competitiveness.
According to Semrush, a search-engine optimization analytics provider, major U.S. platforms such as Google, Facebook, Instagram, and WhatsApp draw more than three-quarters of their audiences from abroad. This global reach underpins their dominance in digital services trade. By contrast, Korean platforms like Kakao and Naver remain heavily dependent on domestic users. From an economist’s perspective, this is not simply about traffic; it is about whether a country can accumulate intangible capital globally or remain constrained at home, underutilizing Korea’s already renowned cultural assets and high-quality content.
The implications are profound. Countries that achieve global reach not only gain scale in producing digital services and innovation but also accumulate rich resources that fuel innovation in AI, recommendation systems, and consumer analytics. The ability to train better algorithms and refine customer experiences becomes itself a form of competitive advantage. Conversely, firms confined to domestic viewership risk falling behind in technological learning, even with strong content, because they lack exposure to the scale of global users that global platforms make use of.
For Korea, the challenge is not only to produce high-quality content but also to capture global attention flows and convert them into durable economic strength. The path forward is clear.
First, Korea must expand its global digital territory by attracting more international users. Investment in multilingual interfaces, translation tools, and accessibility standards will help bring foreign users into Korean digital ecosystems. Importantly, this should not be viewed merely as a cultural export strategy but as a platform expansion strategy that ensures data and engagement remain within domestic platforms.
Second, institutional support is critical. Domestic platforms need a fair and predictable regulatory environment, assistance in overseas expansion, and rules that reward global orientation and innovation rather than constrain them. Policy must strike a balance: consumer protection and data privacy are essential, but overly restrictive rules may inadvertently weaken the ability of Korean platforms to compete globally. At the same time, proactive state support—whether through trade agreements that include digital provisions or through global partnerships—can help Korean firms gain legitimacy and access in foreign markets.
Third, Korea should turn the global success of its cultural content into platform competitiveness. While cultural exports through foreign platforms have been effective, greater gains can be achieved by leveraging increasing returns through direct engagement with global audiences on Korean platforms. By embedding global users within domestic ecosystems, Korean digital companies can build larger pools of intangible capital and secure stronger positions in the global digital value chain. Moreover, connecting K-content with complementary services—such as e-commerce, fintech, or online education—can create new revenue models and strengthen user loyalty.
Finally, Korea must recognize that global digital competition is not only about platforms but about industrial transformation as well. The ability to export services, data, and intangible capital will not only increasingly determine national prosperity, but also help maintain manufacturing-based comparative advantage due to the non-rival nature of productive input. Cross-border viewership should therefore be seen as a strategic input into the broader transition toward an intangible economy.
Countries that succeed in attracting global audiences will accumulate intangible capital more quickly and translate it into lasting competitiveness. Korea cannot afford to remain defensive, focusing only on protecting local users. The priority must shift toward securing global audiences, supporting globally oriented platforms, and converting cultural strength into platform strength. Cross-border viewership is power—and turning that power into national competitiveness is the task at hand.
Ph.D., Associate Research Fellow,
Trade and Investment Policy Team
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