Netflix Inc. said on Tuesday that it would increase its investment in South Korea to $2.5 billion over the next four years in order to create Korean TV episodes, movies, and unscripted content.
South Korean President Yoon Suk Yeol met with Netflix co-CEO Ted Sarandos, leading Netflix to issue the statement. Yoon’s six-day state visit started on Monday when he arrived in Washington.
President Yoon described Netflix’s investment as a “major opportunity” for the country’s content economy since South Korea is striving to enhance its cultural exports and influence.
The share prices of Showbox and Studio Dragon increased by 8.75% and 2.26%, respectively, while the smaller Kosdaq index in South Korea decreased by 2.21%.
South Korea’s entertainment industry has seen exceptional development in recent years, resulting in the phenomenon known as the “Korean Wave” or Hallyu. K-pop stars such as BTS and Blackpink have been pushing the country’s music industry.
Official records show that in 2021, the export volume of content such as music, video games, and films topped that of home appliances and rechargeable batteries, hitting a new high of $12.4 billion.
We were able to make this decision because we have great confidence that the Korean creative industry will continue to tell great stories,” Sarandos said in a statement, referring to Netflix’s worldwide blockbusters made by South Korean producers such as “Squid Game,” “The Glory,” and “Physical:100.”
“Squid Game” remains Netflix’s most-watched series of all time, with 1.65 billion hours watched in the first 28 days following its launch in 2021.
According to Jung Duk-hyun, a pop culture analyst, both South Korean content and Netflix gain from one another.
Everyone is now benefiting. Netflix’s global domination is supported in part by its low-cost Korean content.
Furthermore, “Korean content has enjoyed elevated global status through Netflix’s platform in recent years,” he said.
Netflix issued a more modest estimate than expected last week because it intended to postpone key financial benefits as it tightened down on unlawful password sharing until the second quarter.
