Yeah, I can certainly agree with this topic, with the advent of Gangnam Style, and the decline of anime and Japanese media both here and overseas, it's obvious to say that Japan is losing it's touch, or at least it is currently, but then again, the popularity of anime and manga both inside and out of Japan has been up and down since Osamu Tezuka first made Astro Boy, so it's just a trend that's going on right now with the people of the internet. Besides, with Sony losing competition to Samsung lately, it's no wonder that's a contributing factor as well.
Lately, it's even affected me as well, not only am I learning the Korean language, but I'm reading more and more about the country itself and it's history and culture, among other things, I still love Japan for it's history and culture, but of course I will never drop my interest in anime and manga as well, even with my interest in anime declining slowly.
Until then, goodbye Tokyo, you were a fun place while you lasted, and I'll see all you guys in Seoul then.
Well, South Korea is definitely rising over Japan in terms of electronic products and technology (smartphones, TVs, etc), and maybe K-Pop, too, but manhwa will probably never defeat anime and manga - the manhwa Korea produces is mostly targeted at children, as I know from experience. And of course, the video gaming industry will never develop, either (no one's interested in non-online video games over there, except for Pokémon). So in some ways, yes, and other ways, no.
Nothing is set in stone you know, it's just a current trend with South Korean media at the moment, eventually one day in the future Korea will spawn a more anime-style animated series, nobody ever said it won't eventually happen after all. I do know of some nice non-animated Korean films such as Volcano High, which was heavily inspired by Japanese anime.
But right now, the Korean music industry is the dominant medium, with PSY, Hyun-A, 4Minute, Girls Generation, and many others.