South Korea is often labeled as an economically advanced nation. Yet, many of its citizens still feel as though they live in a developing country. The disconnect is reflected not only in political choices—such as occasionally electing controversial leaders—but also in the country’s evolving economic systems. Nowhere is this contradiction more apparent than in the realm of advertising.

Despite rapid digitalization and global brand presence, many South Korean corporations continue to face direct and indirect pressure from legacy media groups to place advertising. For fear of media retaliation or reputational risk, some companies treat advertising as a quasi-tax—an unofficial fee to maintain favorable relationships with major press outlets.

Corporate attitudes toward advertising in Korea are often far from rational. On one end of the spectrum, companies accept these expenditures as necessary costs for maintaining media relations. On the other, some firms demand stringent accountability and efficiency from both media owners and their advertising agencies, ensuring every won is spent with strategic purpose. The result is a stark contrast in media efficiency: performance differences of 30–40% between these two corporate behaviors are not uncommon.

In essence, companies fall into two distinct categories—those that overspend and those that optimize. Both do so by choice, but the consequences vary. For multinational corporations, this dynamic is further complicated by discrepancies between headquarters and Korean subsidiaries. When headquarters are well-informed about the local media landscape, decisions tend to be more rational and performance-driven. However, if local teams operate without strategic oversight, media efficiency often suffers—despite high levels of spend.

With the recent shift in political leadership, economic policy reforms are expected. One potential outcome is a reduction in pressure from major media conglomerates regarding ad placements. However, the more entrenched problem lies in corporate inertia: the habitual practice of using advertising as a tool for media diplomacy rather than brand building or business impact.

For economic democratization to take root within South Korea’s advertising sector, these behaviors must change. Central to that transformation is the function of media management—not just as a cost controller, but as a governance mechanism that reinforces transparency, efficiency, and fairness in media decision-making.