Naver and Kakao Webtoons Lead the New Wave of Global Hallyu

Webtoon-Based Dramas Like Sweet Home and True Beauty Spark Frenzy
Naver and Kakao's Global Transactions Reach 1.3 Trillion KRW
Naver Expands to Europe and South America Using US Subsidiary as Hub

The tvN drama "True Beauty," based on the Naver Webtoon "Yeosin Gangrim," is gaining popularity. "True Beauty" tells the story of a protagonist who has an appearance complex and grows into a goddess through makeup.

[Asia Economy Reporter Buaeri] Sweet Home, Extraordinary Rumor, True Beauty. The dramas causing a recent sensation share a common trait: their originals are Naver and Kakao webtoons. As webtoons are adapted into dramas and movies and achieve global success, they have emerged as the mainstream of the K-content industry. Naver and Kakao have set plans to make this year the inaugural year of their global expansion centered on the webtoon business.

Webtoon transaction volume exceeds 1.3 trillion KRW

According to industry sources on the 5th, the combined global annual transaction volume of Naver and Kakao has surpassed 1.3 trillion KRW. Naver Webtoon’s monthly transaction volume exceeded 80 billion KRW in August last year, and it is estimated that its global annual transaction volume exceeded 800 billion KRW last year. Kakao Page also recorded a daily transaction volume of 3 billion KRW in the same month, and securities analysts have estimated that Kakao Page’s annual transaction volume has exceeded 500 billion KRW.

Naver Webtoon, with a global monthly active user (MAU) count of 67 million, is showing visible results in the US and Europe. For example, Naver Webtoon’s "Tower of God" has accumulated 4.5 billion views worldwide. According to global app analytics firm App Annie, Naver Webtoon ranks first among comic apps on Google Play in countries including the US, France, Taiwan, Thailand, and Indonesia. Recently, as Netflix dramas have gained worldwide popularity, they have also boosted the popularity of the original webtoons. The Netflix drama Sweet Home, currently airing, ranked first on the charts last month in eight countries including South Korea, Malaysia, the Philippines, Taiwan, Qatar, Singapore, Thailand, and Vietnam. The original Naver Webtoon of the same name has surpassed 1.2 billion cumulative views globally.

Kakao Page is thriving in the Japanese manga market. Capturing the hearts of Japan’s younger generation who prefer mobile content, Kakao Japan’s webtoon platform "Piccoma" has ranked first in sales on both Google Play and the App Store in Japan. Piccoma’s sales have been growing rapidly, doubling every year. The webtoon "Solo Leveling" gained popularity on Piccoma, surpassing 530 million cumulative views, and the Korean hit "Itaewon Class" has a localized version called "Roppongi Class" that is also popular.

Achieving global results this year

Naver and Kakao have set ambitions to lead a new wave of global Hallyu centered on the webtoon business this year. In May last year, Naver restructured its governance so that its US subsidiary, Webtoon Entertainment, oversees the webtoon business. The strategy is to expand Naver Webtoon’s influence further in Europe, South America, and beyond, using the US as a base. Recently, Naver also established "Webtoon Studio," a platform dedicated to webtoon intellectual property (IP) in the US. The results of Naver Webtoon’s preparations are expected to become visible in earnest this year. A Naver official stated, "We are also preparing collaborations with major Hollywood players, which will elevate Naver Webtoon’s status."

Kakao Page is expanding beyond Japan. To enter the North American market, Kakao Page incorporated the North American webtoon platform Tapas as an overseas affiliate in November last year. It has achieved meaningful results from the early stages. Kakao Page generated $850,000 in sales from just 14 works supplied to Tapas. Kakao Page is also preparing to launch webtoon services in Taiwan and Thailand this year. A Kakao Page official said, "We are gradually increasing the number of countries we enter by exporting to Japan, Indonesia, China, and others," adding, "This year will especially be the inaugural year of our global expansion."

The reason Naver and Kakao are focusing on the webtoon business is the market’s growth potential. According to the "2020 Comics Industry White Paper" by the Korea Creative Content Agency, if webtoons are viewed as digital versions of paper comics, the market size is 7 trillion KRW, but if valued as new mobile content, the potential webtoon market size reaches 100 trillion KRW. The potential for business expansion using webtoon IP in movies, dramas, and other areas is also immense. An industry insider explained, "Previously, revenue came from paid content and advertising, but nowadays various revenue models through IP business are being applied," adding, "If webtoons are recognized for their potential overseas, revenue generation through content will expand tremendously."