Netflix is pouring $2.5 billion into South Korean entertainment, while international media companies are stepping up their investments in hits such as the Squid Game and the physical reality show Physical. 100
The four-year investment to produce Korean dramas, films and unscripted shows was announced after South Korean President Yoon Sook-yeol met with Netflix CEO Ted Sarandos in Washington this week as part of a six-day visit to the United States.
Sarandos' investment more than doubles what Netflix previously spent in South Korea, underscoring its confidence in the country's soft power after the September 2021 series The Squid Game became one of the US broadcaster's most-watched shows . .
"Their stories are at the center of the global cultural consciousness today," Sarandos said, referring to The Squid Game , Glory and Physique. 100
South Korea has become a global cultural powerhouse, with Netflix users spending more time watching South Korean shows than any other country outside of the United States.
Other international streaming services such as Disney Plus and Apple TV Plus are following in Netflix's footsteps by increasing their investment in South Korea. The country's content exports, including music, movies and video games, will reach $12.4 billion by 2021, according to the latest government data.
According to the company, South Korean content has won fans around the world, with more than 60% of Netflix viewers watching a show from the country last year.
Yu welcomed the new investment: "This will be a great opportunity for the Korean content industry, creators and Netflix."
Netflix is expected to grow its Asia-Pacific content spending by 15% to $1.9 billion this year, according to Singapore-based research group Media Partners Asia. Broadcasters spend $17 billion on content worldwide each year.
South Korea is Netflix's top destination in Asia, with the streaming platform planning to release at least 34 original shows by 2023.
According to AMPD Research, a subsidiary of Media Partners Asia, Netflix released 29 unique Korean dramas last year, six of which were among the top 10 titles in Asia Pacific. The Glory , a 16-episode school violence drama from Studio Dragon, was one of Netflix's top 10 series in more than 90 countries in March.
South Korean entertainment stocks were higher on Tuesday, with Showbox and Studio Dragon rising 11.5% and 1.5% respectively, while the benchmark Kospi Composite fell 1.4%.
