⌛ Did you miss ProPicks’ 13% gains in May? Subscribe now & catch June’s top AI-picked stocks early.Unlock Stocks

Netflix to invest $2.5 billion in South Korea to make TV shows, movies

Published 04/24/2023, 11:03 PM
Updated 04/25/2023, 09:02 AM
© Reuters. The Netflix logo is seen on a TV remote controller, in this illustration taken January 20, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
NFLX
-

By Hyunsu Yim

(Reuters) -Netflix Inc said on Tuesday it will invest $2.5 billion in South Korea over the next four years to produce Korean TV series, movies and unscripted shows, doubling its investment in the market since 2016.

The U.S. streaming service made the announcement after a meeting between South Korean President Yoon Suk Yeol and Netflix (NASDAQ:NFLX) co-CEO Ted Sarandos. Yoon arrived in Washington on Monday for a six-day state visit.

President Yoon welcomed the investment as a "major opportunity" Netflix and the content industry of South Korea as the latter seeks to boost its cultural exports and influence.

Shares of South Korean production and entertainment companies rallied, with Showbox and Studio Dragon up 8.75% and 2.26%, respectively, compared to the country's smaller Kosdaq index's 2.21% drop.

Known as the "Korean Wave" or Hallyu, South Korea's entertainment industry has enjoyed a global boom in recent years. Its music market, led by K-pop groups such as BTS and Blackpink, have been leading the charge.

In 2021, exports of content including music, video games and films reached a record high of $12.4 billion, according to government data, eclipsing the export volume of home appliances and rechargeable batteries.

"We were able to make this decision because we have great confidence that the Korean creative industry will continue to tell great stories," Sarandos said in a statement, citing the streaming platform's global hits produced by South Korean creators such as "Squid Game", "The Glory" and "Physical:100".

"Squid Game", a 2021 release, remains Netflix's most-watched series of all-time, having racked up 1.65 billion hours of streaming in the first 28 days.

Pop culture critic Jung Duk-hyun said South Korean content and Netflix enjoy a mutually beneficial relationship.

"It's currently a win-win situation. Netflix is maintaining its position in the global market with the help of cost-effective Korean content.

© Reuters. South Korean President Yoon Suk Yeol speaks next to Netflix co-CEO Ted Sarandos during a news conference in Washington, U.S., April 25, 2023.   Yonhap via REUTERS

"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, as it looked to crack down on unsanctioned password sharing into the second quarter to make improvements, delaying some financial benefits.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.