Netflix Inc. announced on Tuesday that it will double its market investment since 2016 and invest $2.5 billion in South Korea over the next four years to produce Korean TV series, movies, and unscripted programming.
Following a meeting between South Korean President Yoon Suk Yeol and Netflix co-CEO Ted Sarandos, the American streaming provider made the news. On Monday, Yoon began a six-day state visit in Washington.
President Yoon hailed the investment as a “major opportunity” for South Korea’s content business as it aims to expand its impact and exports of culture.
In contrast to the country’s smaller Kosdaq index, which fell by 2.21%, shares in South Korean production and entertainment companies rose, with Showbox and Studio Dragon each seeing gains of 8.75% and 2.26%.
The South Korean entertainment sector, also referred to as Hallyu or the “Korean Wave,” has experienced a recent surge on a global scale. K-pop bands like BTS and Blackpink have been driving the country’s music industry.
Government records show that in 2021, exports of content, such as music, video games, and movies, hit a record high of $12.4 billion, surpassing exports of rechargeable batteries and home appliances.
In a statement, Sarandos cited the streaming service’s international hits created by South Korean creators, including “Squid Game,” “The Glory,” and “Physical:100,” and said, “We were able to make this decision because we have great confidence that the Korean creative industry will continue to tell great stories.”
With 1.65 billion hours of watching in the first 28 days, the 2021 release “Squid Game” is still Netflix’s most-watched series of all time.
South Korean content and Netflix, according to pop culture expert Jung Duk-hyun, are mutually beneficial partners.
Currently, everyone benefits. With the aid of reasonably priced Korean programming, Netflix is managing to hold its place in the international market.
Meanwhile, he continued, “Korean content has recently benefited from elevated global status through Netflix’s platform.”
Last week, Netflix provided a less optimistic outlook than anticipated because it planned to crack down on unapproved password sharing in the second quarter to make changes, which would postpone certain revenue gains.