MKT5643 Global Marketing

Globalization of RED in South Korea

Group 1

JIANG Yu 57450821

ZHONG Huiyi 57413284

WU Mingming 57493243

ZHAO Antong 57265283

 Executive Summary

As social media and content marketing have been all the rage recently, domestic
Internet giants are planning social media software to go overseas. As Bytedance has
already targeted the Southeast Asia and Japanese markets, their newest app 'lemon8'
has received many good reviews. However, as mainland China's social media and
content marketing giant, RED has yet to achieve anything overseas. Therefore, We
took advantage of this class project to explore the possibility of RED's overseas
expansion.

This report provides our market research results and the globalization plan of RED.

We first do an overview of the research of RED, and we will find suitable regions
around the world for them to take root in the initial stage by analyzing RED's current
conditions and business model. In this process, we found South Korea is a rare good
opportunity for RED to open up the international market at the beginning from
perspectives like cultural similarity, economic situation, demographic, settlement
pattern, etc. We use SWOT and PEST methods to get a detailed view of our target
market, South Korea. And then, based on these analyses we illuastrated our
comprehensive marketing plan with a product design and promotion approach.

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 Table of Contents
1. Background Information.......................................................................................... 3
2. Culture Environment..................................................................................................4
3. Economic Analysis................................................................................................... 8
4. Market Analysis.......................................................................................................10
Reference ................................................................................................................... 15
Appendix.....................................................................................................................16

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1. Background Information
1.1 RED’s basic information
RED is a lifestyle-sharing platform for users to share positive energy and good life
through the sharing of text, pictures, and videos, which was founded in June 2013.
1.2 RED's Development
RED started its business by helping overseas travelers to draft a shopping list
before they hit the roads. But with the aggregation of more user-generated content, the
service is transforming into a community for those who are passionate about fashion
and shopping and want to know more about these fields even though they do not have
overseas traveling plans on their schedules (Figure 1).

2013.10 2014.1 Now

Begin with a pdf called

RED App Become a Chinese
outbound Shopping Guide which
is launched content community
holds 500,000+ downloads.
giant

Figure 1: RED’s Development History

1.3 SWOT Analysis of RED

1.3.1 Strengths

Algorithm empowerment:
RED uses machine learning algorithms to draw user portraits based on the
user's basic information and browsing records and makes personalized
recommendations, improving users' daily activity and usage time.

Highly active sharing community:

RED dig deep into user needs and fully satisfy user psychology.
Comprehensive functions, rich content types, closely related to the interests of target
user groups, high user stickiness, and loyalty. In addition, with the support of
celebrities and Internet celebrity KOL, RED invites many female celebrities to settle
in according to its target group, increasing its own exposure and traffic.

Comprehensive content coverage:

Besides the current main beauty products, toiletries, and diversified content
sharing based on community platforms, in the future, local life, tourism, sports and
fitness, and home improvement products can also be used as commercialization
channels. Commodities in the mall and the content shared by the community also

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overlap, realizing a closed loop of community planting, mall purchases, and
community sharing.

Low cost of customer acquisition:

Through social fission and word-of-mouth transmission among users, the cost
of customer acquisition can be effectively reduced, and the platform's activity can be
increased.

High spending power of their users:

From the public information, we could find that their users all have a high
spending power. The major four descriptive types of them are Z generation, white
collar, hedonistic, and exquisite baby mother. All of them are people with money and
leisure time.

1.3.2 Weakness

Unbalanced platform users:

According to the survey data, the proportion of women in RED is about 70%,
and the proportion of men and women is out of balance. This is related to the
platform's UGC model. The unit price is higher. At present, there are few products
(such as electronic digital products) on RED that can attract male users.

Single profit model:

The commercial positioning of RED is a bridge between customers and
brands. While providing customers with richer product usage guidelines, it also
provides brand owners with channels for promotion and directions for product
improvement. RED's current main source of income is advertising, 80% of their
income comes from sales advertising, brand cooperation, and promotion. (Figure 2)

Figure 2: RED’s Business Model

1.3.3 Opportunity
The favorable environment at home and abroad:
The scale of domestic import trade will maintain relatively stable growth, and
the market environment for cross-border e-commerce is also relatively stable. In terms
of policies, the cross-border e-commerce retail import tax policy was officially
implemented in 2016, and the regulatory transition period was extended twice. The

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upper management guided and supported the development of cross-border e-
commerce. Generally speaking, the current industry environment is good and is in a
stage of stable development.

Broad market prospects:

As young users are more and more accepting of overseas culture, they have a
higher level of understanding of overseas brands and overseas information, and the
increase in average income has also increased the purchasing power of users.
Overseas shopping market There is a greater demand. At present, the user penetration
rate of Haitao is still relatively low, and there is a large room for development.

1.3.4 Challenge (Threat)

Intense competition:
In recent years, there have been more and more competitors in the social e-
commerce tracking, and more innovative models will appear, and there will be more
and more competitors of the same type, with limited market expansion space, and
RED's Compared with e-commerce giants such as Taobao, JD.com and Pinduoduo, e-
commerce channels are still relatively small. At the end of last year, RED launched a
live broadcast platform. While Taobao live broadcast broke out, Douyin Kuaishou
and Pinduoduo entered the e-commerce live broadcast one after another. How to find
differentiation in the e-commerce industry full of giants is also a test for
Xiaohongshu.

Commercial monetization:
User experience, ecological construction, and commercial monetization are a
dynamic balance. Currently, RED ranks user experience and ecological construction
first, followed by commercial monetization. Excessive commercial content may lead
to the dilution of effective and high-quality content in the community. How to strike a
balance between content quality and commercialization is the challenge RED faces,
which determines whether RED can retain users and continue to grow.

Review of illegal content:

As a lifestyle-sharing community, RED has repeatedly exposed various
problems, such as ghostwriting of grass planting notes, data falsification, violations of
laws and regulations, and even contraband have appeared on the platform, such as the
sensational tobacco incident. These problems once caused RED to be removed from
the shelves for rectification. Most users said that RED is full of a large amount of
advertising content, which should have been conscientious, but has become a
disguised advertisement under the investment of the brand owner's money. Through
content production, content dissemination, and customer acquisition, RED has
gradually moved from the niche vertically to the public's vision, but content
governance has always been a challenge for RED.

2. Cultural Environment
Generally, South Korea is a strong economy in Asia (as one of the developed
countries in Asia) with a highly similar culture to China compared to other developed
countries in Europe and the US. Besides, South Korea is promoting a “building a

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nation through culture” strategy and holding a well-organized internet infrastructure
web which provides a solid basis for developing social media platforms.
2.1 South Korea’s Geographical Setting
2.1.1 Location
South Korea is a country in East Asia. It occupies the southern portion of the
Korean peninsula.
2.1.2 Climate
South Korea’s climate is characterized by a cold, relatively dry winter and a hot,
humid summer.
2.2 South Korea’s social institutions
Small family sizes and high levels of urbanization make them desperate to connect
with others through the Internet.

2.2.1 Family
Household size:
As Figure 3 shows, in 2021, single-person households accounted for about 33.4
percent of total private households in South Korea, followed by two-person
households at about 28 percent. The average household size in South Korea that year
was 2.3 persons.

Figure 3: Distribution of Private Households in South Korea in 2021

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Settlement pattern:
The pace of urbanization in South Korea since 1960 has caused considerable
depopulation of rural areas, and the traditional rural lifestyle has been slowly fading
away. In contrast to rural areas, urban populations have grown enormously (Appendix
1). Seoul, the political, economic, and cultural center of the country, is by far the
largest city; satellite cities around Seoul—notably Anyang, Sŏngnam, Suwŏn, and
Puch’ŏn—also have grown rapidly, forming an extensive conurbation (Greater Seoul)
to the south of the city. In addition to Seoul, other cities with populations of at least
one million are Pusan, Inch’ŏn, Taegu, Taejŏn, Kwangju, and Ulsan.
Demographic trends:
South Korea’s population more than doubled over the second half of the 20th
century. From 1960, however, birth rates decreased rapidly, and the population
growth rate was almost negligible by the beginning of the 21st century. During the
same period, mortality rates also slowed, reflecting an overall increase in living
standards.
More than four-fifths of the population is classified as urban; roughly half the
population lives in the country’s seven largest cities. Thus, although the country’s rate
of population growth is low, its overall population density is high, which is two and a
half times that of North Korea (Figure 4).
Figure 4: South Korea Age Breakdown in 2021
2.2.2 Education System
After World War II, South Korea began to popularize education, and now the
population is generally well-educated.
Six years of primary-school education and three years of middle school are
compulsory, and virtually all children of school age are enrolled. Nearly all middle-
school graduates continue to high-school or technical school. About four-fifths of
high school graduates go on to higher educational institutions. Graduation from a
college or university grew considerably in importance in South Korea after World
War II, and the number of college-level institutions increased enormously. Admission
to a college or university requires applicants to pass a fiercely competitive entrance
examination; high school students must endure grueling preparation work for these
examinations, and less than half of high school graduates get the opportunity to study
at universities. Nearly all of the most prestigious schools are located in Seoul; these

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include the state-run Seoul National University (founded 1946)—one of more than a
dozen national universities located throughout the country—and the private Korea
University (1905), Yonsei University (1885), Ewha Womans University (1886), and
Sookmyung Women’s University (1906). In the late 20th and early 21st centuries,
overseas study, particularly in the United States, grew in popularity.
2.2.3 Political System
South Korea has a multiparty system in which two parties have tended to
dominate, although their names and composition have often changed. In the early 21st
century the conservative Grand National Party and the centrist-liberal Democratic
Party were dominant.
2.2.4 Legal System
The judicial branch consists of the Supreme Court, three appellate courts (High
Courts), district courts, a family court, a patent court, and administrative and local
courts. The Supreme Court is empowered to interpret the constitution and all other
state laws and to review the legality of government regulations and activities. The
chief justice is appointed by the president with the consent of the National Assembly.
2.2.5 Ethnicity Composition
The population of South Korea is highly homogeneous; almost the entire
population is ethnically Korean, and there is a small minority of ethnic Chinese
permanent residents. The number of foreigners is growing, especially in the major
urban areas; people from Japan, the United States (including members of the
military), and China make up the largest foreign populations, although they still
constitute only small fractions. Many foreign nationals are employed in business or
the diplomatic corps, and tens of thousands of workers come from China and
Southeast Asia (Figure 5).

Figure 5: Ethnic Composition

2.3 South Korea’s Religion and Language
2.3.1 Religion

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 Freedom of religion is constitutionally guaranteed in South Korea, and there is no
national religion. Historically, several religions prevailed successively: shamanism
(the religious belief in gods, demons, and ancestral spirits responsive to a priest, or
shaman), Buddhism, Daoism, and Confucianism. The principles and social outlook of
Confucianism are still much in evidence in Korean daily life and family relationships,
and Buddhism remains influential—even among people who may be nominally
Christian, for example. Approximately one-fourth of the population professes
Christianity, with Protestants (particularly Presbyterians and Methodists), independent
Christians, and Roman Catholics the largest groups. Less than one-sixth of the
population is Buddhist (Figure 6).

Figure 6: South Korea Religious Affiliation in 2015

2.3.2 Language
All Koreans speak the Korean language, which is often classified as one of the
Altaic languages, has affinities to Japanese, and contains many Chinese loanwords.
Korean often is written as a combination of Chinese ideograms and Hangul in South
Korea, although the trend is toward using less Chinese. A large number of English
words and phrases have crept into the language—either intact or modified by local
usage—as a result of the American presence in the country since 1950.

3. Economic Analysis
3.1 Specific Dimensions
3.1.1 Population
As of 2021, the population of South Korea is estimated to be around 51 million
people. The country has a relatively high population density, with most people living
in urban areas.
3.1.2 Market Size
South Korea is known for its tech-savvy population and thriving tech industry.
The market size of a new SNS app would depend on the target audience and features.
However, it can be expected that the market size would be relatively large, given the
country's high smartphone penetration rate and the popularity of social media among
the population.

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3.1.3 Economic Activities and Status
South Korea has a highly developed and diversified economy, with major
industries including electronics, automobiles, steel, and shipbuilding. The country is
also a leading producer of semiconductors and displays. In recent years, South Korea
has focused on developing its service sector, including finance, healthcare, and
tourism.
3.1.4 GNP and GDP
As of 2021, South Korea's Gross National Product (GNP) is estimated to be
around USD 1.6 trillion, and its Gross Domestic Product (GDP) is estimated to be
around USD 1.6 trillion. South Korea has one of the world's largest economies, the
fourth largest in Asia.
3.1.5 Average Household and Individual Income
The average household income in South Korea is around 64,000,000 KRW per
year (approximately USD 56,000). The average individual income is around
24,000,000 KRW annually (approximately USD 21,000). It's worth noting that there
is a significant income gap between urban and rural areas in South Korea.
3.1.6 Communication Systems
South Korea is known for having one of the world's most advanced
communication systems. According to data from the International Telecommunication
Union (ITU), as of 2021, around 95% of the population in South Korea uses the
Internet. The country has high-speed internet infrastructure and is a leader in 5G
technology.
3.1.7 International Trade Conditions and Trade Relationships with China
China is South Korea's largest trading partner, largest export market, and largest
source of imports, while South Korea is China's third largest trading partner country.
According to Chinese statistics, the trade volume between China and South Korea in
2022 was US$362.29 billion, an increase of 0.1 percent year-on-year. Of this, our
imports amounted to US$1996.67 billion, a decrease of 6.5% year-on-year, while
exports amounted to US$162.62 billion, an increase of 9.5% year-on-year.
By the end of June 2022, Korea's actual investment in China had accumulated
USD 93.08 billion, while our actual investment in Korea had accumulated USD 7.71
billion. Korea is the second largest source of foreign investment in China, and China
is the second largest recipient of Korean investment.
3.2 SWOT Analysis
3.2.1 Strengths
a. Rich user-generated content
Many user-generated contents on Red can provide detailed assessments of
products and services and practical experiences and knowledge shared by other users.
This content can provide valuable information to Korean consumers.
b. Strong social media presence
Red has become a new type of social media in China that enables users to share
their buying experiences and build their influence. If it can successfully enter the
Korean market, Red may also gain influence there.
c. Collaboration with local brands in South Korea
Red could collaborate with local brands to provide various product promotions,
product showcases, and buying advice, which could increase Red's visibility and
influence in the Korean market.
d. Market potential
Korea has a large consumer market, and Red could look for business opportunities

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and expand its user base.
3.2.2 Weakness
a. Localization issues
Red needs to make localization adjustments for the Korean market, including
language, culture, user needs, etc. If localization issues are not successfully resolved,
it may affect the performance of Red in the Korean market.
b. Fierce competitive environment
The Korean market already has many social media and e-commerce platforms,
such as Kakao, Naver, etc. Red needs to find its place in this highly competitive
market.
c. Regulatory restrictions
Korea has its own rules and regulations, and Red needs to comply with them.
Otherwise, it may be penalized and affect its business.
d. Brand recognition
Red's brand recognition in the Korean market needs to be higher and requires a lot
of marketing and brand promotion, which may affect Red's competitiveness in the
Korean market if the promotion and publicity are insufficient.
3.2.3 Opportunities
a. Access to international markets
By entering the Korean market, Red can expand its international market and
increase its user base and profitability.
b. Meeting the needs of young consumers
Korea has many young users with strong demand for fashion, beauty and lifestyle.
Red can provide useful information and services to these users.
c. Develop new business opportunities
By partnering with local brands, Red can provide users with more shopping
options and offers.
3.2.4 Threats
a. localized competition
Korea already has its localized social media and e-commerce platforms, such as
Naver, Kakao, etc. These platforms have strong localization advantages and user base
and are strong competitors for Red.
b. Capital investment
Red needs to invest much capital in the Korean market regarding marketing and
promotion, product promotion, etc. If the investment is sufficient or appropriate, it
may affect the development of Red in the Korean market.
c. Policy and legal risks
Korea has unique laws and policies, and there may be some policy and legal risks
for Red, such as privacy protection, content censorship, etc.
d. Product adaptability
Red needs to adapt its products for the Korean market, and if it fails to meet the
needs of local consumers, it may affect Red's performance in the Korean market.

4. Market Analysis
4.1 Competitor Analysis
There are two major competitors of RED entering the South Korean market.
The first one is BAND. BAND is a social media app launched by local Internet
giant Naver in South Korea in 2012. In less than two years after its launch, BAND has
surpassed Facebook's number of active users in South Korea. It is somewhat different
from regular group chat apps, which is more like a Facebook club in type, but it does

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not collect as much personal information as Facebook. The main themes of this social
media are travel, photography, mountaineering, painting, books and produce. Users
can choose to enter specific sections according to their interests, where they can find
many friends, to communicate and discuss together. However, it only focuses on
private community sharing and the majority of Koreans in their 50s use BAND.
The second one is Instagram. Instagram is a photo-sharing social media service
owned by Facebook. According to a recent survey, Instagram is the second most
frequently used social networking service by Koreans, with 5.8 billion minutes of
usage per month, which means 15.66 million Koreans spend an average of 6 hours
and 11 minutes per month. Instagram allows users to capture their life memories in
any environment and choose the filter style of pictures. However, Instagram has stuck
to its focus on photos and videos and discouraged users from using text too much.
Images (and videos) have always been the most important vehicle for Instagram
content, which places a lot of limits on what users can share and some barriers to
brands spreading.
4.2 Segmentation and Targeting
There are 4 segments in this market. In the first segment, people tend to seek
information for fun or consumption through social media apps, they like to know
some specific information they want or what the daily news is. In the Second
segment, people desire to share things about them, the content is not limited to
pictorial nor textual, it could be both daily life and experience. Also, the audience of
their sharing is not limited to private communities. People in the third segment are
slightly different from the segment 2 as they just want to share the specific moment of
their life, so the content may just be pictures. In the last segment, people are more
blocked, they just want to share things to the private community. In conclusion, RED
is targeting the first 2 segments people.
4.3 Positioning
Based on the previous analysis, RED’s position will be: To South Korean Females
who want to improve and share lifestyles through social media apps, RED is a social
media app that provides both pictorial and textual contents to help them improve their
life quality and share lifestyles more efficiently and comprehensively.
4.4 Product Strategy
4.4.1 Core component
The first is its platform. RED encourages sharing and interaction in product
design, and users can post far more than pictures and videos. In addition, users can
also post notes of less than 1000 words to share the content of food, skin care,
clothing, travel, fitness, decoration, reading and other aspects of life, which is highly
integrated.
The second is the functions. As the main functional module of the home page of
RED, “Discover” has a collection of various fields of content. The clear classification
tags would enable users to find recipes, buy air tickets, apply for visas, find overseas
travel guides, study, and job experience, and even to sell second-hand or short-term
rent. Like the general platform audit mechanism is machine audit, human audit is
mainly to filter out the platform of no profit, mainly involving gambling and violence.
The subjective operation of RED is relatively strong as it is the reviewer to judge
whether the content is beneficial to its distribution users, that is to say, we often say
that it is not "real stuff" because we don’t know whether there is not the advertising
information. This "subjective review" is often more representative of the user on the
other side of the screen than the cold machine. The credibility of information shared
by "real people" is greatly increased. Also, as RED is not a private social platform,

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many people are willing to share their essays, moods, and daily lives with strangers
here.
The third is the algorithm. In the searching UI, with its strong algorithm, users
could easily find the most relevant content, which makes the searching process
efficient. In addition to liking comments, users can also create multiple favorites for
their favorite notes on RED. What is more, "Discover" is based on a powerful
algorithm to generate a push of "thousands of faces" according to the user's
preferences in the form of a feed stream, which also facilitates users to find the
content they are interested in.
4.4.2 Package component
The trademark and shopping user interface will remain the same, and the brand
name will be RED and its Korean version.
4.4.3 Support Component
There will be coupons in the shopping part, deliveries and warranty will be
guaranteed as well. Also, there will be customer services for users to give feedback,
instructions and traffic awards for content creation.
4.5 Distribution Strategy
When considering the distribution strategy for the RED in Korea, the network is
chosen as the main distribution channel. Similar to other mobile apps, if the users
want to experience them, the first step is to download them from the network.
Normally, the Red’s official website (Appendix 2) will allow the Korean users to
download the app. Both Android and IOS users can find corresponding download
entries from the website. Besides, the RED will be distributed through third-party
platforms. For instance, the RED will be displayed on major App Stores such as ONE
Store, which is the most widely used app store in Korea. Also, social media would be
the great distribution platform due to its huge traffic advantage. Download links of the
RED can be found on popular social media platforms in Korea such as Kakao Talk,
Instagrams and Youtube. In general, as a new entrant in the Korean market, online
distribtion would be the wisest method for the RED with the advantages of low cost,
high channel control and wide coverage of potential customers.
4.6 Promotion Strategy
In the promotion part, an integrated marketing communication plan is made for
the RED in the Korean market. According to the AIDA model, as a new entrant into
the foreign market, the most important thing for the RED is to gain public attention
and increase customers’awareness, which is the overall objective for the IMC plan.
And all of the subsequent actions will be around this objective.
Firstly, advertising strategy will be conducted. The RED itself is an online
community for the young to share their lives. Therefore, when creating advertising
content, joy, desire and belonging would be used as main appeals. In the specific
content part, it is a good idea to connect life scenes from both celebrities and ordinary
people, which seems to mean that in the little red book, people who seriously mark a
good life can all play together. Besides, during the post editing period, suitable colors
and bgm will be added to make the ad more attractive. Then, the ads will be put on the
major social media platforms in Korea, such as Instagrams, BAND, YouTube and Tik
Tok. The display mode can be splash ads, news feed ads, or just video ads.
The second part in the IMC plan is to use influencer marketing strategy. The
influencers themselves already have huge network traffic, which means they can
quickly bring up relevant topics. Besides, the influencers have vertical influence in
particular fields like cosmetics and cooking where they can gain high trust and

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reputation from the customers. All of these reasons above imply that it is efficient to
promote the RED by inviting suitable KOLs and celebrities to join the platform. In
terms of appropriate candidates to be invited to the RED, several standards are given.
Firstly, a wide fans base in Korea is required. Secondly, the influencers should have
good professionalism in certain fields. We did some research about hot topics among
users in the RED, and found that users are mostly interested in the beauty and food
topics (Figure 7). Therefore, the RED can try to invite influencers from these two
fields to drive traffic at the very beginning. The last standard emphasizes that the
influencers are able to create high-quality content since the RED is a content-based
platform. Good content can always attract potential customers. Based on the three
standards, the report lists some known KOLs from different platforms who might be
suitable to be invited to the RED in Korea (Table 1).

Figure 7: Hot Topics in RED

Table 1: Popular KOLs in Korea

Thirdly, social media marketing strategy is considered as well. Living in a digital
world, the natural advantage of free traffic on social media platforms can not be
ignored. To promote the brand by social media , the first thing to do is operate
accounts regularly. The RED can create official accounts on different social media
platforms, then it has to output content from time to time, such as product introduction
and recent activities. Also, topic creation is a good method to involve the public into
online discussion, which can drive attention and popularity to the RED itself. In
general, the power of social media marketing is driven by the unparalleled capacity of
social media in terms of three core values, which are connection, interaction, and
customer data. That is to say, by social media, when the brand creates value for the
customers, it can gain feedback from them, thus having a deeper understanding of
customer needs at the same time.
The following strategy to use is sales promotion. Different from traditional
physical products, the incentives included are virtual rewards that can be used inside
the RED app. The underlying logic behind this promotion strategy is social fission
(Figure 8 ). It means that there are built-in tasks in the RED. If the existing users
invite their friends to newly join the RED, both of them can gain rewards from the
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platform including coupons and free delivery which can be consumed in the e-
commerce part of the RED. As to the free vip trial and free traffic incentives, they can
help new users to quickly expose content posted on the RED.

Figure 8: Social Fission

The last part in the IMC plan is brand cooperation. When reviewing previous
brand cooperation cases of the RED in China, it turned out to be great success.
Cooperation always leads to wider coverage of potential users. More importantly,
working together with local brands makes a foreign brand enter the new market more
easily, hence increasing the customers’awareness. This is because the customers tend
to gravitate toward products they are familiar with. Besides, it is hard for a mobile
application to conduct offline promotion independently, so cooperation with other
brands who have regular offline channels gives the RED an opportunity to increase
offline exposure. In this project, to promote the RED in Korea, we choose several
partners who are popular in beauty area in Korea, such as Innisfree, TUDE HOUSE,
and LANEIGE. The possible formats for cooperation can be through both online and
offline channels. Normally, posters, pictures and articles can well spread cooperation
new online. As to the offline channels, pop-up stores, new product conference, and
share sessions can be considered for joint promotion. For example, the RED can
sponsor the new product conference of its partners. In this way , the customers can get
to know the RED while buying new products from the partner brand.
4.7 Pricing Strategy
Similar to the RED in China, most part of the RED will be free for the Korean
user. It means that the Korean users can download it, enjoy quality content and most
app functions totally for free. However, if the users would like to look for deeper
experience in the RED, they can pay for value-added services, such as membership, e-
wallet, creator service and e-commerce. Compared to the free part, these paid services
seem to be more customized and attractive to certain customer groups like content
creators.

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6. 《2021 年韩国数字市场趋势新格局》, TopPlayable, 2021
https://zhuanlan.zhihu.com/p/457418899
7. 《韩国居民社交媒体使用率达 89%，全球第二》, Haecheon, 2021
https://www.yazhouribao.com/view/20210616075432841
8. Data of South Korea, World Bank
https://data.worldbank.org/country/korea-rep

Appendix

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Appendix 1: South Korea Urban-Rural in 2018

Appendix 2: RED’s Official Website

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