Netflix has announced plans to invest an additional $2.5 billion into South Korean content production, doubling its investment since entering the market in 2016 with Bong Joon-ho’s sci-fi action drama Okja. Co-CEO Ted Sarandos made the announcement following a meeting with South Korean President Yoon Suk Yeol in Washington DC.
The fresh investment will be directed towards the creation of series, movies, and variety shows, highlighting the streaming giant’s confidence in South Korean content’s ability to attract global audiences. With over 60% of Netflix’s 233 million members worldwide consuming South Korean content, the nation’s movies and shows have significantly bolstered the platform’s success. As Netflix faces stiff competition from Amazon Prime and Disney+, the company is keen to capitalize on South Korea’s popularity. Netflix’s most extensive Korean content slate ever includes over 20 series, six films, several reality shows, and two documentaries.
The phenomenal success of Squid Game underscores the global appeal of South Korean content. Viewers spent a staggering 1.65 billion hours watching the show’s first season, making it Netflix’s most-watched non-English language series of all time. Three other Korean series—All of Us Are Dead, The Glory, and Extraordinary Attorney Woo—also feature in the top 10 most-watched non-English language shows, each amassing nearly half a billion hours.
It’s not just Korean dramas capturing international attention, though; the reality show Physical 100 has also made waves. The show features 100 of South Korea’s top athletes from various disciplines, including prison guards and fitness influencers, competing for the title of the most impressive physique. Physical 100 is the first reality series to top the weekly charts of the most-watched non-English language shows on Netflix. The show’s popularity surged when BTS member Jungkook live-streamed it.
Netflix’s growth strategies extend beyond content investment, as the company explores other avenues to expand its subscriber base. In November 2022, Netflix introduced a $6.99-per-month ad-supported tier, currently available in only 12 of the 190-plus territories where the platform operates. Furthermore, Netflix reduced its prices by 20% to 60% in 30 countries this February, while also gradually cracking down on password sharing.
South Korea’s cultural exports are thriving, reaching an all-time high of $12.4 billion in 2021, according to the country’s Ministry of Culture, Sports, and Tourism. Cultural content, including music, games, films, and animation, has become a formidable economic force, surpassing the export value of home appliances, secondary batteries, electric vehicles, and display panels.
In a statement, Sarandos cited South Korean creators’ global hits, such as Squid Game, The Glory, and Physical:100, as reasons for Netflix’s confidence in the country’s creative industry. Pop culture critic Jung Duk-hyun noted the mutually beneficial relationship between South Korean content and Netflix: “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.”
