The Role of CJ’S Group in South Korea Diplomacy in Indonesia

Indrawati and Prullyta Vega Negara

Universitas 17 Agustus 1945 Jakarta, Indonesia

Keywords: Corporate Diplomacy, CJ Group, South Korea, Indonesia, Cooperation, Creative Industries.

Abstract: Corporate diplomacy is a concept that describes the role of companies in state diplomacy. The corporation

has an influence on the impression of its home country through its products so that it is effective for nation

branding. CJ Group as a South Korean conglomerate company has become an actor in South Korea's corporate

diplomacy in Indonesia, whether intentional or not. This research uses a qualitative descriptive method to find

out how is the role of CJ Group in Corporate diplomacy. This research finds that the collaboration between

the creative industries of South Korea and Indonesia is a forum for the practice of South Korean corporate

diplomacy in Indonesia. The role of the CJ Group in corporate diplomacy is illustrated by its efforts as

corporate diplomacy. This research also describes the advantages of South Korea from the role of the CJ

Group as an actor of corporate diplomacy.

1 INTRODUCTION

South Korea is one of country that South Korea is one

of the countries that is aggressively conducting

cultural diplomacy and has had a positive impact on

the country one of which is through the Korean Wave

is described by the spread of Korean culture through

creative industries such as television drama, music,

fashion and also food.

The importance of cultural diplomacy for South

Korea has been explained in the South Korean foreign

policy report White Paper 2006. Cooperation is one

of the implementations of South Korean diplomacy in

Indonesia. Cooperation in the creative industry sector

and on October 12, 2013 the two signed an MoU on

creative industry cooperation by Mari Elka Pangestu

(Minister of Tourism and Creative Economy of

Indonesia) and Yoo Jinryoung (Minister of Culture,

Sports and Tourism of South Korea) in the hope that

their cooperation will increase, especially in the field

of film, music and art.

The implementation of South Korean cultur

diplomacy involve other actor beside government

actor. CJ Group is one of the biggest companies in

South Korea that engaged in the production of

creative industries. In Indonesia, CJ has been heavily

involved in bilateral cooperative relations in the

creative industry sector.

In this paper, will discus abaut the role of CJ

Group in South Korea diplomacy in Indonesia. There

are two Theories that will use in this research:

Cultural Diplomacy, and Cooperate Diplomacy. The

main objective of cultural diplomacy is to influence

public opinion which will influence certain foreign

policy with its implementation in several forms. That

is; Exhibition, propaganda, penetration, negotiation,

competition, expert exchange. South Korea used

these efforts to encourage the spread of Korean

culture in Indonesia. (Warsito & Kartikasari,

Diplomasi Kebudayaan, Konsep, dan Relevansi Bagi

Negara Berkembang: Studi Kasus Indonesia., 2007)

The Second Theory is Corporate Diplomacy.

Corporate Diplomacy is one of public diplomacy

which is characterized by the active role of

government-supported corporations to promote their

country through what they produce, whether it be

material products such as fashion, food, information

media, to the world of entertainment which will be a

representation of the country (Rigo E & J. , 2009)

2 LITERATURE REVIEW

2.1 Cultural Diplomacy

Cultural diplomacy is one of the derivatives of public

diplomacy which includes cultural values such as art,

language, knowledge and information. Cultural

diplomacy has the essence of “Mutual

Understanding” where in the process, there is an

144

Indrawati, . and Negara, P.

The Role of CJâ

ZS Group in South Korea Diplomacy in Indonesia.

DOI: 10.5220/0011977300003582

In Proceedings of the 3rd International Seminar and Call for Paper (ISCP) UTA â

Z45 Jakarta (ISCP UTA’45 Jakarta 2022), pages 144-149

ISBN: 978-989-758-654-5; ISSN: 2828-853X

 2023 by SCITEPRESS – Science and Technology Publications, Lda. Under CC license (CC BY-NC-ND 4.0)

interaction of exchanging information and talking

about culture so that it is easier to approach which will

produce mutual understanding between countries.

That way the interests on the agenda can be more

easily achieved (Cummings, 2003).

The cultural diplomacy is a way for countries to

achieve their interests without using the military

where the interests are usually in the form of desire to

get a positive assessment from people of other

countries so as to facilitate cooperation in various

sectors. But on the other hand, to conduct cultural

diplomacy, the state must first recognize the

characteristics of the destination country for mor

effective achievement (Jin, 2008). The main goal of

cultural diplomacy is to influence public opinion that

will affect certain foreign policy with its

implementation consisting of several forms such as

exhibitions, propaganda, competition, negotiations,

penetration, exchange of experts (Warsito &

Kartikasari, Diplomasi Kebudayaan, Konsep, dan

Relevansi Bagi Negara Berkembang: Studi Kasus

Indonesia, 2007).

2.2 Corporate Diplomacy

The development of the dynamics of international

relations has made diplomacy actors not limited to

government actors but has developed to involve non-

government actors such as corporate. Development in

corporate diplomacy can be used as tool to support

public views and convey the messages that the

government wants to convey (Ordeix & Duarte,

2009).

Corporate communications can play a role in

build relation, increasing trust, fostering positive

public opinion and influencing the image of the

company’s home country, all of which are goals of

public diplomacy and nation branding. Corporate

diplomacy is a form of public diplomacy

characterized by the active role of corporations

supported by the government to promote their country

through what they produce whether it is material

products such as fashion styles, food, information

media to be the world of entertainment which will be

a representation of the country. Corporate diplomacy

is not only said to be form of corporate participation

in public diplomacy in supporting government

programs but also to support their views and help

convey the messages they want to convey to the

public so that corporations are include in the

“Strategy of State Legitimacy abroad” section

(Ordeix & Duarte, 2009).

3 METHOD

To answer hoe the corporate ‘s role in diplomacy, this

research will use qualitative research methods.

Qualitative method is a way to find answer to research

problems that have to do with data in the form of

narratives whose sources are from the process of

interviews, observations and document reviews. The

approach in this research uses a case study approach

where case studies are a method of providing a

framework or research procedures that must be

followed. The case study in this research is the

creative industry cooperation between Indonesia and

South Korea. This case study will provide a

framework to help answer how the role of corporate

in South Korean diplomacy.

4 RESULT AND DISCCUSION

4.1 Creative Industry in South Korea

One of the countries that has been recognized for its

success in the ea “Hallyu” or Korean Wave or also

commonly known as the “Korean Wave” is an

international phenomenon that has influenced the

dynamics of the world since its emergence.

The complexity of cultural practices, customs and

strong literature has become a phenomenon that sends

te influence of cultural not only nationally or at the

local level but also transcends national boundaries.

The Korean Wave is a phenomenon that refers to

the global popularity of Korean creative products and

reflects the progress of South Korea's creative

industry. The development of South Korea's creative

industry became a turning point for Korea in

improving their economy which had been hampered.

4.2 CJ Group as South Korea Creative

Industry Actors

CJ (Cheil Jedang) Group is one of South Korean

Multinational Company which are active in the

creative industry. With the principle of spreading

Korean culture through its products, CJ Group

established 4 divisions, namely;

a. Delicious World which is engaged in Korean

food until now has expanded and has a fairly

high popularity in various countries

including Indonesia and has provided

significant profits

b. Healthy World engaged in research,

biotechnology and food engineering to

The Role of CJâ

ZS Group in South Korea Diplomacy in Indonesia

145

ensure the quality of food products

produced.

c. Convenient World engaged in the

distribution of logistics and lifestyle needs.

This division also has an extensive network

for the export of creative industry products

from Korea to various countries including

Indonesia.

d. Joyful World engaged in media and

entertainment such as CGV cinema, film

production, and boy group and girl group

artists such as WANNAONE, Heize, Kim

Jaehwan and others.

4.3 South Korea-Indonesia Creative

Industry Cooperation

Cooperation in the creative industries of Indonesia

and South Korea was inaugurated on October 12,

2013 the two signed the agreement Memorandum of

Understanding Between the Agency of Creative

Economy of the Republicof Indonesia and the

Ministry of Culture, Sports, and Tourism of the

Republic of Korea on the Field of Creative Industries

which is an MoU on creative industry cooperation by

Mari Elka Pangestu (Minister of Tourism and

Creative Economy of Indonesia) and Yoo Jinryoung

(Minister of Culture, Sports and Tourism of South

Korea) in the hope that their cooperation will

increase, especially in the fields of film, music, and

art. (Kemenpar., n.d.)

The two countries then renewed the

Memorandum of Understanding (MoU) on Creative

Industries on May 16, 2016 between the Indonesian

Creative Economy Agency and the Korean Ministry

of Culture, Sports and Tourism containing several

points of agreement, including:

a. Exchange, education, training, and capacity

building in the fields of film production

technology, broadcasting content and digital

content.

b. Information exchange about market and

decision making

c. Sharing experiences about financing the

creative economy, sources of costs, and

investing in the creative economy.

d. Provide technical assistance in the

development of performing arts, music,

drama, cinema technology.

e. Organize exhibitions and participate in the

market to promote cooperative partner

relations.

f. Facilitate production programs and market

them.

g. Joint Venture between creative industry

projects in both countries.

h. Build strong relationships in the creative

industries of each country.

Since the signing of the MoU on Creative Industry

cooperation between Indonesia and South Korea in

2013, the two countries have held several activities in

various sub-sectors of the creative industry. These

activities are also used as South Korea's efforts to

practice cultural diplomacy in Indonesia.

First,

Korean Indonesian Film Festival. This

festival is a program of the Korean Culture Center

Indonesia (KCCI) which is held every October. The

purpose of this festival is to introduce the traditions,

culture, social life of the people of Indonesia and

South Korea through films. This event is held at the

CGV cinema (previously named Blitzmegaplex) in

certain places (Sukimo, 2015)

Second, Indonesia-Korea Cinema Global

Networking. This program aims to be a forum for

Indonesian film industry players to introduce and

promote their business to attract the interest of the

South Korean film industry with the target of

increasing the quality, quantity, and reach of the

Indonesian film industry network.

Third, Join Venture NET TV, KBS, and CJ

Entertainment. This collaboration between NET TV,

KBS, and CJ Entertainment is an agreement in the

development, research, and investment in the

broadcasting sector with the aim of improving the

quality of Indonesian broadcasting content.

Fourth, Korean Academy of Film Arts (KAFA)

and Indonesia Workshop. This collaboration is

carried out to develop the film industry in Indonesia.

In addition, this collaboration aims to provide

opportunities for the film industry of the two

countries to further advance their cooperation.

Fifth, Young Creator Indonesia Fashion Institute

(YCIFI). This collaboration is a training program that

focuses on the textile and fashion industry so that the

younger generation is increasingly motivated to

achieve success in this field and be able to compete at

the global level. The program which was initiated on

October 5, 2015 is not only to improve the quality of

fashion industry players, this program is also a form

of effort between the two countries to open up new

cooperation opportunities.

Sixth, Jakarta Fashion Week 2017. This activity is

an exchange platform activity that facilitates South

Korean and Indonesian designers for capacity

building.

Seventh, Cooperation for the Protection of

Indonesian Musicians' Copyrights. The collaboration

between Karya Cipta Indonesia (KCI) and the Korean

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Society of Composer, Author and Publisher

(KOSCAP) is a collaboration in terms of managing

and protecting the Copyrights of Korean songwriters

in Indonesia and vice versa.

Eighth, K-Food Fair Jakarta. This culinary

exhibition certainly aims to further introduce South

Korean culinary specialties in Indonesia. In addition,

seeing that the majority of Indonesian people are

Muslims, this event also provides halal products so

that they can be enjoyed by all people in Indonesia.

(KCC, n.d.)

Ninth, Jakarta Art Institute Painting Exhibition at

Media Hill. This exhibition is an exhibition to

promote Indonesian culture by displaying paintings

and batik. The venue for this exhibition was held at

one of the exhibition facilities owned by CJ E&M.

Tenth, One Village One Product. The One Village

One Product MoU signed on July 27, 2019 is a

collaboration between CJ Foodville, the Indonesian

Ministry of Cooperatives and SMEs, the Korea

Trade-Investment Promotion Agency (KOTRA) and

local companies. In this collaboration, the Korean

side through CJ Foodville is committed to helping

improve the quality of coffee produced by local

cooperatives, developing the use of chocolate

products, and assisting in marketing strategies.

Lastly, the CJ CGV K-Pop Festival. Seeing the

great interest of the Indonesian people towards K-Pop

culture, CJ CGV Cinema collaborates with Warner

Music Indonesia to hold the CGV K-Pop Festival in

2019. This activity is in the form of a K-Pop talent

search event through making singing and dancing

cover videos uploaded to YouTube and The best

videos will get prizes for champions in various levels

and categories.

In the agenda points of the Korean-Indonesian

creative industry cooperation, it can be seen that

cultural diplomacy also includes not only diplomatic

relations between government or state actors but can

also be carried out by private actors such as

companies. Private involvement in cultural

diplomacy can occur between companies and the

government of the destination country for diplomacy

or between companies (Bussines to Business).

4.4 The Role of CJ Group in South

Korea Diplomacy in Indonesia

The role of CJ Group in creative industry cooperation

between Indonesia and South Korea can be explained

through the concept of Corporate Diplomacy. There

are several things that companies do as an effort to

assist the government in the diplomatic agenda, both

in certain countries and globally. (White, , 2015)

In South Korean cultural diplomacy towards

Indonesia, CJ has been involved a lot, such as in the

Korean-Indonesian Film Festival, CJ CGV K-Pop

Festival, joint ventures and several other agendas.

Even in film collaborations, it is said that the reason

Indonesia wants this collaboration is because of the

success of CJ E&M which has been popular on the

international stage and the many films produced by

CJ E&M that have won awards at international

events.

The involvement of CJ Group in several activities

shows a role in cultural diplomacy. This shows that

there is a mutually supportive relationship between

the South Korean government and CJ where the

government cooperates with CJ, who does have a

reputation for proud products, is included in several

activities, as well as CJ's support for government

programs.

In terms of investment, CJ Group has been

investing for a long time. Recorded in the

manufacturing and food sectors from 2011 to 2015 CJ

Group has invested 500 million US dollars (Bayu,,

2018). In 2016, CJ Group's investment in film

entertainment and food reached US$2.1 billion and

the company's total investment across all business

units in 2018.

In addition, the latest report states that as of

November 2019 CGV's shares in PT Graha Layar

Prima reached 68 million US dollars (Firdaus, 2019)

CJ's contribution to cultural promotion can be

seen from his involvement in Imagine Your Korea

which is a Korean tourism information center under

the auspices of the Korean Tourism Organization

(KTO).

Namsan Seoul Tower or N Seoul Tower Korea

which is operated by CJ Group and the M-Countdown

building which is a concert venue for K-Pop artists

who are in great demand by K-Popers from various

countries, are both included in the list of

recommendations for Korean tourist destinations in

tourist guide books. Imagine Your Korea.

In addition, several CJ Artists were also involved

as South Korean tourism ambassadors, namely

Seolhyun for the 2016-2018 period, which was paired

with one of the famous actors, Lee Min-ho (Visit

Korea, n.d.)

The fact that Indonesia is a country with the

largest Muslim population in the world, CJ made a

product development in the form of 'Halal'

certification in one of its food products branches,

namely Tous Les Jours which is a bakery food

product that is quite popular in Indonesia.

In the media sub-division, in addition to

increasing the number of cinemas, CJ CGV has also

The Role of CJâ

ZS Group in South Korea Diplomacy in Indonesia

147

developed a new feature, namely "PlayActive

Cinema" which is a new concept in cinema which is

described by the unification of concepts between

cinemas, sports activities and hangout places so that

visitors do not only make CGV a place to watch

movies but also as a center for entertainment and

daily activities.

Corporate Social Responsibility a practice aimed

at stakeholders. At the end Social Responsibility is

used as a tactic to grow the company's legitimacy and

influence and the rest will make it easier for the

company to achieve its goals.

As a company that has proven its efficiency in the

use of material, energy and water resources, CJ even

received the Green Industry Award from the Ministry

of Industry of the Republic of Indonesia.

In South Korean diplomacy in Indonesia through

creative industry cooperation, CJ Group has a role as

an actor in corporate diplomacy which can be seen

from its efforts as an actor in corporate diplomacy,

namely contributing to cultural diplomacy, investing

in Indonesia (FDI), contributing to the promotion of

the Korean tourism sector. South, carry out product

development in Indonesia to carry out Corporate

Social Responsibility activities.

4.5 CJ Group’s Contribution to South

Korea’s Profit

Cooperation cannot be separated from the existence

of national interests. The existence of the CJ Group

as a South Korean corporation that has been heavily

involved in South Korean diplomacy practices, has

also contributed to South Korea's profits.

CGV Cinemas Indonesia earned a profit of Rp.

12.4 billion in 2017. This income was obtained

through the export of Korean films to Indonesia

through CGV. Income is also earned through

investment in CGV which benefits CJ Group

companies and also contributes to the South Korean

economy ( Prihatini , 2019)

The profits generated are not only economic but

also have an impact on South Korea's image. Judging

from CJ's films which became the best-selling films

in Indonesia such as "Train to Busan", "Battleship

Island", "Parasite".

The popularity of these films certainly affects the

image of South Korea in the Indonesian people

because films can be a tool of cultural diplomacy to

convey cultural values. Film is considered an

effective and easy way to spread cultural heritage

because films are able to describe the situation in

society to the public so that it will form the image of

the country (Fadli, 2016)

Non-government actors in diplomacy play a role

in create the image and reputation of their country.

Popular culture, including music, film, entertainment,

culinary, which is produced by the private sector is

considered to have contributed greatly as a soft power

that drives the wheels of diplomacy. The involvement

of the private sector in diplomacy is demonstrated

through explicit actions in diplomatic goals such as

cultural exchange. (White, , 2015)

Corporate diplomacy is described as the

government's effort to use private companies in its

country to further encourage the expansion and

improvement of products to various countries where

these products will represent their country of origin in

other countries.

5 CONCLUSION

The efforts made by the CJ Group as an actor of

corporate diplomacy affect the impression of the

South Korean itself. This impression also affects the

relationship between Indonesia and South Korea

where the cooperation between the two countries

continues to increase at the level of "Special Strategic

Partnership". Indonesia's desire to cooperate with CJ

is proof that CJ has formed the image of South Korea

as a country with an advanced creative industry.

Revenues from product exports are also a sign of CJ's

contribution to the South Korean economy.

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