Netflix revealed on Tuesday that it will double its market investment from 2016 and spend $2.5 billion in South Korea over the following four years. The money will be used to produce Korean films, television shows, and non-scripted content. The declaration followed a meeting between Netflix co-CEO Ted Sarandos and South Korean President Yoon Suk Yeol, who was on a six-day state visit to Washington.
President Yoon applauded the investment and saw it as a huge opportunity for both Netflix and the South Korean content industry. This development supports South Korea's initiatives to increase its exports of culture and broaden its influence.
The shares of South Korean production and entertainment companies including Showbox and Studio Dragon increased as a result of the announcement.
The Korean entertainment sector, often known as the Korean Wave or Hallyu, has experienced a global boom in recent years, with K-pop bands like BTS and Blackpink driving the charge in the music market. The export of content, which includes music, video games, and movies, reached an all-time high of $12.4 billion in 2021, marking a historic turning point. This amount was greater than the volume of rechargeable batteries and home appliances exported.
Based on international hits like Squid Game, The Glory, and Physical:100 created by South Korean producers, Netflix has faith in the Korean creative sector. With 1.65 billion hours of streaming in the first 28 days of its debut, the 2021 Netflix series Squid Game continues to retain the record for the streaming giant's most-watched series of all time.
According to pop culture critic Jung Duk-hyun, the relationship between South Korean content and Netflix is mutually beneficial. "It's currently a win-win situation. Netflix is maintaining its position in the global market with the help of cost-effective Korean content. At the same time, Korean content has enjoyed elevated global status through Netflix's platform in recent years," he said.
Last week, Netflix issued a second quarter prediction that was lower than anticipated in an effort to address the problem of unauthorised password sharing. Although the decision would delay certain financial gains, the business is nevertheless optimistic about the future.