Pop culture wins star billing as means to broaden economy

Central bank chief looks to Korean model in injecting life and money into China's cities

South Korea can provide a model for China in promoting vibrant cities on the back of a successful entertainment industry, the central bank governor says.

The popularity of Korean pop culture - films, television programmes and music - had done more than just aid the country's exports, Zhou Xiaochuan said in an interview with Caijing magazine. The so-called Korean wave had stimulated cultural life at home, with the embrace of a celebrity culture spurring citizens to go out and spend money.

Mr Zhou contrasted Korean attitudes with those found in cities such as Frankfurt, where a lack of entertainment choices after work turned the city centre into a desert as workers headed home for a night in front of the television.

Mr Zhou presented these contrasting examples in encouraging the development of China's service sector while avoiding an over-dependence on foreign trade to drive the economy.

Services accounted for 32 per cent of gross domestic product last year, far below the comparable figures in India, Brazil and Russia. While government consumption accounts for 19 per cent of this figure, consumption by individuals is weak.

The target consumer group is the wealthiest 20 per cent who account for about 80 per cent of the 12 trillion yuan in individual bank deposits. 'Whether or not this is acceptable from a moral point of view, the greatest buying power is concentrated in this segment,' he said.