Netflix announced on Tuesday that it will be investing $2.5 billion in South Korea over the next four years, doubling its investment in the market since 2016. The funds will be utilised for the creation of Korean television series, films, and non-scripted programming. The announcement came after a meeting between South Korean President Yoon Suk Yeol and Netflix co-CEO Ted Sarandos during Yoon's six-day state visit to Washington.
The investment was welcomed by President Yoon, who regarded it as a significant opportunity for both Netflix and the content industry in South Korea. This development aligns with South Korea's efforts to enhance its cultural exports and expand its influence. The news resulted in a surge in the shares of South Korean production and entertainment firms such as Showbox and Studio Dragon.
The Korean entertainment industry, also known as the Korean Wave or Hallyu has seen a global boom in recent years, with its music market, led by K-pop groups such as BTS and Blackpink, leading the charge. The year 2021 witnessed a historic milestone in the exports of content, encompassing music, video games, and films, which reached an all-time high of $12.4 billion. This figure surpassed the export volume of home appliances and rechargeable batteries.
Netflix's confidence in the Korean creative industry is based on its global hits produced by South Korean creators, such as Squid Game, The Glory, and Physical:100. Squid Game, the 2021 series that premiered on Netflix, continues to hold the title of the streaming giant's most-watched series of all time, with a staggering 1.65 billion hours of streaming in the first 28 days since its release.
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.
Netflix provided a forecast for the second quarter last week that was lower than expected, as the company aimed to address the issue of unauthorized password sharing. The move will delay some financial benefits, but the company remains confident in its future prospects.
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