Why is Korea strangely absent from K-content’s global boom?

HUNTR/X from Netflix’s ″KPop Demon Hunters″ [NETFLIX]

 
The record-breaking popularity of Netflix’s “KPop Demon Hunters” has confirmed one thing: Korean content now commands a global audience.  
 
Released on June 20, the animated film continues to make history on the platform nearly four months after its debut. It has now become the most watched content on Netflix, outperforming the previous record holder, the first season of “Squid Game” (2021-) and marking the first Netflix production to exceed 300 million views.
 
 
What was initially expected to appeal only to a limited audience, such as young women or K-pop fans, ended up captivating a far broader public, crossing borders and generations. 
 
Its strong, widespread popularity underscores both the global potential of Korean culture and its scalability.
 
Recognizing that potential, Netflix bet heavily, pledging $2.5 billion in Korean productions by 2027. Rivals like Apple TV+ and Prime Video are also joining the trend, racing to launch their own Korea-themed originals such as “KPOPPED” and “Butterfly.”  
 
Yet what seems like a triumph for Korean culture raises another question: Why are global streamers driving the biggest Korean projects and what weaknesses within Korea’s own content industry are keeping it from taking the lead?
 

A person buys a ticket at a theater in Seoul. [NEWS1]

 
Lack of investment and the vicious cycle
 
What appears to be a heyday for Korean content stands in stark contrast to the domestic industry, which has been mired in a prolonged slump due to declining investment, weak performance and low returns.
 
Film production has sharply declined, with reports saying an estimated 25 films are to be produced this year, less than half of the 58 titles made just five years ago. The drop is particularly devastating considering that from 2000 — often considered the start of the modern heyday of Korean cinema — until the Covid-19 pandemic, Korea’s annual film production ranged between 60 and 100 titles.
 
Television, while faring slightly better than film, faces its own difficulties, especially among traditional broadcast networks.
 
Between 2019 and 2023, domestic broadcasters’ drama productions fell from 109 to 77, while dramas produced by global streaming platforms jumped more than sevenfold, from 3 to 22, according to the Korea Communications Commission’s 2024 report.
 
At the heart of the problem lies the fact that money is not circulating effectively within the domestic ecosystem, leading to fewer productions, especially in the film realm. The limited investment, combined with a constrained distribution system, has created a vicious cycle.  
 

Director Lee Chang-dong speaks at the Jeonju International Film Festival in 2022. [JIFF]

 
Lower returns have led investors to feel reluctant and scale back funding for new projects. According to a report from the Korean Film Council (Kofic), Korea’s commercial films recorded average returns of –12.55 percent in 2022 and –30.98 percent in 2023, discouraging investors from funding new projects.
 
“Due to the recent slump in box-office performance, the five major film investment and distribution companies — CJ ENM, Lotte Entertainment, Plus M Entertainment, NEW and Showbox — have continued to either suspend or refrain from making new investments,” Kofic noted.  
 
This environment has pushed even high-profile creators to seek funding overseas for both films and dramas. A case that many worried had happened recently, as director Lee Chang-dong, known for films like “Burning” (2018), “Poetry” (2010), “Secret Sunshine” (2007) and “Peppermint Candy” (2000), gave up on a theatrical release of his new film “Possible Love” and instead partnered with an overseas giant, Netflix. 
 
This came as a shock to many in the Korean film industry, as even those once thought to have little trouble securing funding — legacy filmmakers like Lee — have found themselves turned away by the traditional film system, highlighting how even its most respected auteurs are no longer immune to the industry’s decline.
 
The director reportedly returned his government funding for his new film from the Ministry of Culture, Sports and Tourism after failing to secure additional domestic investment. He ultimately turned overseas, receiving funding from Netflix. The film, which stars Jeon Do-yeon, Sul Kyung-gu, Zo In-sung and Cho Yeo-jeong, is now set for release on the platform.
 

A theater in Yongsan District, central Seoul, on Feb. 19 [YONHAP]

 
Switching from a vicious to a virtuous cycle
 
For investors to actively fund projects, a stable system that promises efficient returns is essential — one that ultimately encourages reinvestment in new content. In other words, a virtuous cycle needs to be established.
 
In Korea, however, this cycle stands weak and imbalanced.
 
Prof. Ko Sam-seog of Dongkuk University, who wrote “Next Hallyu,” noted that Korea excels in production. However, it is weak in investment, distribution and revenue sectors. 
 
“If we simply look at the broadcast media or the K-drama sector, while production capabilities are strong, securing investment remains challenging, so much of it relies heavily on platforms like Netflix,” Prof. Ko said. “The same goes for distribution. Currently, Korea lacks its own strong global distribution network.”
 
 
Creating a virtuous cycle requires not only more investment but also stronger returns. A key task is strengthening domestic distribution platforms. While continuing a strong partnership with global streaming platforms like Netflix and Disney+, domestic platforms such as Tving and Wavve — which recently announced a merger — must gain traction to keep revenue circulating within Korea.
 
However, keeping domestic platforms limited only to Korean users is not the solution and expanding their global reach is critical to enhancing competitiveness.
 
Experts echoed this point, emphasizing that positioning these platforms as global players is essential. One strategy is to focus on Asian regions more receptive to K-content, rather than competing directly with global giants.
 
“For example, in the Southeast Asian market, Korean streaming platforms can form strategic partnerships with the region’s local streaming services, setting off co-productions, including local originals, while also sharing distribution channels,” Prof. Ko said.
 
Local broadcasters also need stronger revenue sources, particularly from advertising, to create more new projects, ultimately calling for eased regulations.  
 
Currently, although broadcast operators and internet service providers, like streamers, serve the same users, the law treats them differently, imposing stricter regulations on broadcasters. Broadcasters face stricter rules covering content review and advertising under the Broadcasting Act and the Internet Multimedia Broadcasting Business Act.  
 
“There are many restrictions on things like mid-roll ads or prohibited products such as pharmaceuticals, creating a significant regulatory gap between broadcast operators and internet service providers,” Noh Chang-hee, the head of the Institute of Digital Industry & Policy, pointed out, referring to them as “outdated.”
 
“Honestly, audiences today are accustomed to such advertising environments and would not be opposed to bold or unconventional ad formats on broadcast channels,” he said.
 

Still from comedy zombie film ″My Daughter is a Zombie”; The film is an adaptation of a popular webtoon of the same name by cartoonist Lee Yun-chang and the first film to garner 5 million moviegoers this year. [NEW]

Afraid of trying something new
 
As domestic investment has dried up, it is natural for companies to take safer approaches regarding what projects to produce and whom to work with. However, this risk-averse mindset has led Korea to lose diversity, often repeating past successes rather than exploring new ideas.
 
A noticeable manifestation of this trend is adaptations and remakes. Many Korean projects focus on adapting already popular stories, such as webtoons or web novels, or remaking previously successful projects. This approach ensures a higher likelihood of success, as the original works already have a built-in fan base — a pool of potential viewers.
 
Although this trend dates back to the mid-2000s, projects achieving massive success have been particularly prominent since the mid-2010s.  
 
For example, film franchise “Along With the Gods,” based on the webtoon of the same name by cartoonist Joo Ho-min, was released in two installments in 2017 and 2018, each surpassing 10 million ticket sales — a benchmark considered a major commercial success.
 
Webtoon-based productions have also made a significant impact on television. tvN’s drama “Misaeng” (2014) drew major social attention, resonating particularly with office workers, while JTBC’s “Itaewon Class” (2020), also adapted from a webtoon, achieved global success, especially in Japan, sparking a phenomenon known as the “Park Saeroyi Syndrome.”
 

A still from film ″Along with the Gods: The Last 49 Days″ (2018), the second installment of the ″Along with the Gods″ franchise; The film is an adaptation of a webtoon of the same name by cartoonist Joo Ho-min. [LOTTE ENTERTAINMENT]

 
This cycle has become a recurring pattern, reflecting the risk-averse tendencies of content investors and companies, which often compromises originality and freshness. Insiders see it as inevitable, as projects based on webtoons or web novels consistently perform well and are often considered a “success formula.”
 
“It’s important for us to follow this ‘success formula,’” an industry insider told the Korea JoongAng Daily. “As we see more cases where adaptations of existing works succeed, we naturally look to similar genres or search for works we can adapt for the screen.”
 
To diversify the industry, nurturing creators with unique ideas is essential. A problem frequently cited by experts is Korea’s lack of a new generation of talent. Animation director Joung Yu-mi said during an interview with Korea JoongAng Daily in August that she noticed generational change in the international art house scene when she visited this year’s Cannes Film Festival — a shift which is not happening in Korea.
 
And in order to do so, the media infrastructure needs a paradigm shift: Moving beyond a sole focus on big names and popularity — something Kofic noted, saying that the industry “relies more on the director’s or actor’s name value than on the quality of the script or content” — and instead supporting emerging creators and small- and mid-sized companies, who are the mid-level player in the industry.  
 
Kang Shin-gyu, a researcher at the Media & Advertising Research Institute in the Korea Broadcast Advertising Corporation, said that the government should take the lead in creating an “industry with strong mid-level players,” allowing them to climb up the industry ladder and grow.  
 
“Measures could include things like protecting intellectual property, simplifying administrative processes for tax incentives they cannot access themselves and other forms of both direct and indirect support,” Kang said, as solo creators and small- and mid-sized companies often lack the human resources and accessibility to navigate complex administrative procedures while focusing on their projects.
 

Boy band Ateez and singer Kylie Minogue watch a traditional Korean dance performance from Apple TV+’s ″KPOPPED″ [APPLE TV+]

Opening to the globals

The fact that Korea’s content industry is struggling is something that should not be overlooked. Yet, with the global rise of K-content, fueled by the strong popularity of projects like “KPop Demon Hunters,” there are clear opportunities ahead, as more and more overseas creators opt to cover Korea. 
 
In response to this trend, one key approach is to foster global collaboration based in Korea and open up to foreign creators. This can mean hosting productions in the country, from location shoots to creative partnerships.
 
The idea that only Koreans living in Korea can tell Korean stories needs to shift, as well. Instead of viewing these emerging global players as outsiders or potential competitors to defeat, the industry should see them as creative partners to grow and evolve with.
 
“When Italians come to Korea and see sweet potato pizza, they’re shocked, but for us, it’s nothing unusual. Still, in a way, pizza has expanded. And we still think of its origin as Italy,” Prof. Lee Sung-min at Korea National Open University said, emphasizing the need to embrace the different forms in which K-content is consumed. 
 
Experts also note that the government should leverage this trend by offering incentives.
 
“When more productions [by foreign companies] take place in Korea, local staff have the opportunity to gain valuable experience and build their skills,” Prof. Lee said. “So, I believe there should be incentives to attract such projects, so that a wider variety of film and video content can be produced domestically.”
 

Still from Prime Video’s series ″Butterfly″ [TVN/AMAZON MGM STUDIOS]

 
Culture Minister Chae Hwi-young also said at a recent press conference that Korea should aim to take part in more “made with Korea” content, rather than adhering to a “made by Korea” framework.
 
Other possible measure is providing foundational cultural resources for global creators to incorporate into their work. For instance, Maggie Kang, director of “KPop Demon Hunters,” said she based the beloved tiger character, Derpy, on traditional Korean folk art. By improving accessibility to such resources, other international creators can more easily incorporate Korean culture into their projects, reducing the risk of cultural distortion that has been a common concern.
 
In the past, efforts to digitize and archive historical records and cultural data, such as the “Annals of the Joseon Dynasty,” have been made. Now, it is time to expand these initiatives as more international creators seek to feature Korean culture in their work.
 
“Cultural resources can serve as a rich source of material,” researcher Kang said. “Also, the collections of visual references from different eras can be used later by creators in their work.”
 

BY KIM JI-YE [[email protected]]