The major purpose of this study is to find out what factors are responsible for Hallyu, the flow and popularity of Korean popular cultural products in East Asia, and which direction Hallyu is heading for. To do this, recent structural and institutional changes in the region are examined and the 2008 EASS data analyzed. Opening up of the cultural market and development of the mass media industry, especially television, laid the ground for Hallyu in East Asia. The 2008 EASS data reveal that social proximity and two demographic variables are common factors for the rise of Hallyu in East Asia, but globalization and modernity variables had no effect on Hallyu. Females are more attracted to Korean TV dramas than males, but typical Hallyu fans are youngest in China, followed by Taiwan, and Japan the oldest. Besides these characteristics of Hallyu fans, the quality of Korean cultural products is an important factor in their success abroad. Since the second decade of the new millennium, Hallyu evolves into a new, or second, stage in which its contents, strategy, and media change considerably. Hallyu, representing a case of alternative globalization, signals a new phase in the recent history of globalization.