Netflix To Invest $2.5 Billion In South Korea To Produce More Content

Netflix announced on Tuesday (25 April) that it will invest US$2.5 billion in South Korea over the next four years to produce Korean TV series, films, and unscripted shows, more than doubling its previous investment in the country since 2016.

The announcement came following a meeting between South Korean President Yoon Suk Yeol and Netflix co-CEO Ted Sarandos.

Yoon arrived in Washington for a six-day state visit on Monday.

President Yoon praised the investment, calling it a "major opportunity" for South Korea's creative industry and Netflix as the government attempts to boost cultural exports and soft power.

Shares of South Korean production and entertainment companies rose on Tuesday, with Showbox and Studio Dragon up 8.75 percent and 2.26 percent, respectively, compared to a 2.21 percent decrease in the country's smaller Kosdaq index.

South Korea's entertainment industry, known as the "Korean Wave" or Hallyu, has experienced a global surge in recent years. Its music market has been spearheaded by K-pop groups such as BTS and Blackpink.

According to the most recent official data, exports of content such as music, video games, and films hit a new high of $12.4 billion in 2021, surpassing home appliances and rechargeable batteries in terms of volume.

"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, noting global hits produced by South Korean creators such as Squid Game, The Glory, and Physical:100.

Squid Game, which will be released in 2021, is Netflix's most-watched series of all time, with 1.65 billion hours of watching in the first 28 days.

Netflix provided a lower-than-expected prediction last week, citing the need to crack down on unauthorised password sharing in the second quarter in order to improve, postponing some revenue gains.