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This article examines the effects of Hallyu and the King Sejong Institute (KSI). Upon estimating the gravity model, we find Hallyu has significantly positive impacts on foreign students, tourists, and Korean exports. Moreover, the effects of Hallyu are stronger for female students (tourists) than for male students (tourists). Korean imports from other countries respond positively to Hallyu, but less than Korean exports do. The KSI reduces foreign (particularly male) student flows. Also, KSI promotes more male tourists than female tourists. Finally, by reducing the transaction cost, KSI increases Korean exports and imports altogether.

Effects of Hallyu and the King Sejong Institute on International Trade and Services in Korea