Netflix has announced that it will invest $2.5 billion in South Korea content over the next four years. The streaming site plans to produce more Korean TV series, movies, and shows.
The streaming giant’s decision comes after a meeting between South Korean President Yoon Suk Yeol and Netflix co-CEO Ted Sarandos. Yoon welcomed the investment as a “major opportunity” for Netflix and the content industry of South Korea. The country has been seeking to boost its cultural exports and influence. The move is set to double Netflix’s investment in the Korean market since 2016.
According to government data, the Korean entertainment industry has enjoyed a global boom in recent years. This is with content exports reaching a record high of $12.4 billion in 2021.
Shares of South Korean entertainment companies rallied in response to Netflix’s announcement. Showbox and Studio Dragon’s stocks are up 8.75% and 2.26%.
“We were able to make this decision because we have great confidence that the Korean creative industry will continue to tell great stories,” said Sarandos. He cited the streaming platform’s global hits produced by SK such as “Squid Game” and “The Glory.” “Squid Game,” which premiered in 2021, is Netflix’s most-watched series of all time. It garnered 1.65 billion hours of streaming in the first 28 days.
Pop culture critic Jung Duk-hyun said South Korean content and Netflix benefit from each other. “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 offered a lighter-than-expected forecast last week. The company looks to crack down on unsanctioned password sharing in the second quarter. This is to make improvements, delaying some financial benefits.
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