South Korea's entertainment industry is part of what's known as 'Hallyu' or 'The Korean Wave'. Its exports are credited for elevating South Korea's economy and global profile. But as Joseph Kim reports, the growth of the industry could stagnate the creative force behind it.

K-pop isn't a global phenomenon on accident.

South Korea is actively promoting Korean culture abroad, from food, movies, to music.

Last year, K-pop alone raked in nearly $5 billion US dollars, according to a foundation under South Korea's culture ministry.

KIM YONG-RAK, PRESIDENT KOREA FOUNDATION FOR INTERNATIONAL CULTURAL EXCHANGE "By spreading Korean culture all over the world, South Korea receives benefits economically, because it creates wealth for the country."

The benefits are almost immediate.

Kim says if they support an overseas concert, South Korea quadruples its return.

But it's not just the entertainment industry that wins.

MOON HWY-CHANG PROFESSOR, SEOUL NATIONAL UNIVERSITY "Made in Korea brand name. And all the Korean products, which may not be directly related to the culture industries but will also benefit."

This global brand name is part of what is known as 'soft power'.

It gives countries cultural and economic benefits, but there's also a downside.

KIM YONG-RAK, PRESIDENT KOREA FOUNDATION OF INTERNATIONAL CULTURAL EXCHANGE "In Southeast Asia, Korean culture has already been widely dispersed. But for those countries' people, there could be worries of 'imperialistic' plunder of their culture or extreme commercialism, or something in that light. So we're working to ease this and make mutual exchanges."

The pursuit of soft power has led to a type of arms race between various countries also trying to expand their influence internationally.

In turn, this has created more problems domestically.

JOSEPH KIM SEOUL "The vast potential cultural exports have has also generated other problems within the industry. There are concerns the market could become monopolized, as larger, multinational companies try to get a bigger piece of the pie. These concerns have been voiced by various management groups, who told me the Produce series has been a catalyst for these concerns—as it's given the broadcaster MNET, part of the larger CJ Entertainment, rights to the artists, despite having no investments in them."

LEE NAM-KYUNG REPRESENTATIVE, KOREA MANAGEMENT FEDERATION "If broadcasters get all the power, no matter how much they say it's fair and balanced and that they're doing it for public service, they are in truth companies that think about their bottom line. So from the broadcasters' perspective, they will try to maximize their profits, meaning they will make content for their artists and to promote their genres."

Despite the popularity K-pop has seen, experts and insiders worry less diversity will stunt creativity and K-pop's growth.

If this happens, it could cause the music market to collapse and diminish the Korean brand name it helped to create.