Netflix Inc. (NASDAQ: NFLX) inches down in pre session on Tuesday after it plans to invest $2.5 billion in South Korea over the next four years to develop Korean TV series, movies, and unscripted projects, more than tripling its previous commitment in the country.
The declaration came during 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 hailed the investment as a “major opportunity” for Netflix and South Korea’s creative business, as the latter tries to increase cultural exports and impact.
South Korean production and entertainment stocks rose, with Showbox and Studio Dragon up 8.75% and 2.26%, respectively, compared to the country’s smaller Kosdaq index, which fell 2.21%.
South Korea’s entertainment sector, known as the “Korean Wave” or Hallyu, has seen a global surge in recent years. Its music market has been spearheaded by K-pop groups such as BTS and Blackpink.
According to official data, exports of content like as music, video games, and films hit a new high of $12.4 billion in 2021, surpassing exports 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”.
The 2021 release “Squid Game” is Netflix’s most-watched series of all time, with 1.65 billion hours of viewing in the first 28 days.
According to Jung Duk-hyun, a pop culture analyst, South Korean content and Netflix have a mutually beneficial partnership.
“Right now, it’s a win-win situation.” Netflix’s worldwide market dominance is being maintained with the aid of low-cost Korean content.
