MM News

WASHINGTON: Netflix CEO Ted Sarandos has announced that the streaming giant plans to invest $2.5 billion in South Korean content over the next four years. The announcement was made after Sarandos met with South Korean President Yoon Suk Yeol in Washington.

Netflix aims to produce Korean TV series, movies, and unscripted shows, doubling the amount it has invested in the market since 2016.

President Yoon welcomed the investment, describing it as a “major opportunity” for South Korea’s content industry and Netflix as the country seeks to increase cultural exports and soft power. Ted Sarandos expressed “great confidence” in South Korea’s creative industry and its ability to continue telling great stories, citing the success of recent global hits such as “The Glory” and “Physical 100.”

The news resulted in shares of South Korean production and entertainment companies rallying on Tuesday, with Showbox (086980.KQ) and Studio Dragon (253450.KQ) up 8.75% and 2.26%, respectively, compared to the country’s smaller Kosdaq index’s (.KQ11) 2.21% drop.

It is pertinent to mention here that the South Korean content has gained immense popularity worldwide in recent years, with over 60% of Netflix viewers watching a show from the East Asian country in 2022, according to company data. Netflix has previously spent over 1 trillion won ($750 million) on developing Korean content from 2015 to 2021 and had already announced plans to expand its South Korean show output.