Netflix Inc (NFLX.O) announced on Tuesday that it planned to invest $2.5 billion in South Korea over the next four years to produce Korean TV series, movies, and unscripted shows, more than tripling the amount of money the firm has put into the region since 2016.
Following a meeting between South Korean President Yoon Suk Yeol and Netflix co-CEO Ted Sarandos, the American streaming provider made the news. On Monday, Yoon began a six-day state visit in Washington.
In order to boost cultural exports and soft power, President Yoon hailed the investment as a “major opportunity” for South Korea’s Netflix and video business.
The South Korean Kosdaq index (.KQ11) fell 2.21% on Tuesday, but shares of production and entertainment firms Showbox (086980.KQ) and Studio Dragon (253455.KQ) rose 8.75% and 2.26%, respectively.
The South Korean entertainment sector, also referred to as Hallyu or the “Korean Wave,” has experienced a recent surge on a global scale. K-pop bands like BTS and Blackpink have been driving the country’s music industry.
According to the most recent government data, exports of content, such as music, video games, and films, hit a new high of $12.4 billion in 2021, surpassing exports of rechargeable batteries and home appliances.
In a statement, Sarandos cited the streaming service’s international hits created by South Korean creators, including “Squid Game,” “The Glory,” and “Physical:100,” and said, “We were able to make this decision because we have great confidence that the Korean creative industry will continue to tell great stories.”
With 1.65 billion hours of watching in the first 28 days, the 2021 release “Squid Game” is still Netflix’s most-watched series of all time.
As company prepares to tighten down on unauthorized password sharing into the second quarter to make changes, Netflix provided a lighter-than-expected outlook last week, deferring some financial gains.