Netflix said on Tuesday that it plans to invest $2.5 billion in South Korea over the next four years to produce Korean TV series, movies and reality shows. This investment is twice the amount Netflix has invested in the Korean market since 2016.
The US streaming service’s investment was announced after a meeting between South Korean President Yoon Seok-yeol and Netflix co-CEO Ted Sarandos. President Yoon arrived in Washington on Monday for a six-day state visit.
President Yoon hailed the investment as a “major opportunity” for Netflix and the country’s content industry, which the country seeks to increase its cultural exports and soft power.
Shares of domestic production and entertainment companies rallied in the Korean market on Tuesday, with Showbox (KOSDAQ:086980) and Studio Dragon (KOSDAQ: 253450) gaining 17.35% and 2.26%, respectively. The domestic KOSDAQ index fell 3.09%.
Known as the “Korean Wave” or Hallyu, Korea’s entertainment industry has enjoyed a global boom in recent years. The music market led by K-pop groups such as BTS and Blackpink has continued to lead.
According to recent government data, exports of content including music, video games and movies in 2021 will reach a record high of $12.4 billion, following home appliances and rechargeable batteries in export volume.
Citing the streaming platform’s global hits from Korean creators, such as “Squid Game,” “The Glory,” and “Physical:100,” Sarandos said in a statement, “The Korean creative industry will continue to tell great stories. I was able to make this decision because I have great confidence in it.”
Released in 2021, “Squid Game” remains the most-watched series of all time on Netflix, with 1.65 billion hours of streaming in its first 28 days. Netflix (NASDAQ: NFLX) delivered a disappointing forecast last week as it looks to crack down on unauthorized password sharing and delay some financial benefits in the second quarter in an effort to improve.