[Interview] First Meeting Over 20 Years Ago... Joining Forces as Co-CEOs of KT Studio Genie

Interview with Co-CEOs Yoon Yongpil and Kim Chulyeon at New Headquarters near Gangnam Station, Seoul on the 11th
Reading Advanced Trends at COEX and Gangnam-daero

Platform Content Competition Fueled by OTT
Behind-the-Scenes Battle for IP Acquisition
Optimizing Distribution Channels by Content Type Analysis

I recently met with Yoon Yong-pil and Kim Cheol-yeon, co-CEOs of KT Studio, who ushered in the era of the Seocho headquarters, at the company’s main office building on the 11th. The photo shows co-CEOs Yoon Yong-pil and Kim Cheol-yeon from right to left. Photo by KT Studio Genie

[Asia Economy Reporter Cha Min-young] "It seems that people who are meant to meet do meet. We first saw each other during overseas business trips in the mid-1990s, and eventually ended up working together." (Yoon Yong-pil & Kim Cheol-yeon, Co-CEOs of KT Studio Genie)

On the 11th, we met Yoon Yong-pil and Kim Cheol-yeon, co-CEOs of KT Studio Genie, which recently opened its Seocho headquarters. In the 1990s, when the Korean media and content industry was much smaller, people in the industry knew each other’s faces after just a few rounds of meetings. Both CEOs, seasoned veterans from Samsung Video Business Group (Yoon Yong-pil) and CJ ENM (Kim Cheol-yeon), met again after about 20 years within the KT Group. These days, they often discuss "how to effectively sell good content."

KT Studio Genie Opens Era of Seocho Headquarters

Since the 20th of last month, about 40 employees of KT Studio Genie, including the two CEOs, have started commuting to the new office located in the Samsung Life Seocho Tower near Gangnam Station in Seoul. The office is designed with various concept meeting rooms resembling movie and drama sets, spacious lounges, and workspaces reminiscent of university libraries. The office applies a free seating system to enhance space efficiency, making it a smart office.

Yoon Yong-pil, co-CEO of KT Studio Genie, is speaking during an interview held at the company headquarters on the 11th.

The new headquarters’ location in Gangnam, separate from KT’s main office, was chosen for its geographical advantages. The Gangnam area of Seoul is close to hotspots like COEX and Gangnam-daero. It is also home to young startups and foreign companies. CEO Yoon Yong-pil said, "As a company that plans and develops content, it is important to read cutting-edge trends. Even just the street displays and shop windows are really different from Sangam-dong, where SkyTV is located," and smiled. Yoon also serves as CEO of SkyTV.

IP Acquisition War... Under-the-Table Competition Even Before First Episode Release

Domestic and international online video services (OTT), including Netflix, have ignited competition among domestic platform companies like KT to secure content. "OTT is not a regulated business, so it has contributed to breaking down boundaries," said CEO Kim Cheol-yeon, evaluating the content business parallel to platform operations as a "natural flow."

The competition for intellectual property (IP) rights for video production is also fierce. It is common for webtoons and web novels to be adapted into videos simultaneously as they are serialized. Sometimes, video adaptation is considered from the start of serialization. Within the KT Group, StoryWiz, responsible for discovering original IP, plays a role in finding gems through its own webtoon and web novel platform, "Blythe." CEO Kim said, "By the time an IP becomes popular, its owner is usually already found. We try to secure it by the first episode or even earlier, as being late by four episodes is already too late."

Kim Cheol-yeon, co-CEO of KT Studio Genie, is speaking during an interview held at the headquarters building on the 11th.

However, IP is not limited to webtoons and web novels. CEO Yoon Yong-pil said, "In foreign countries, there are many cases of remaking previously successful videos," adding, "The movie 'New World' could become a drama." Genre shifts, world-building expansion, and character emphasis are tools for variation.

Rising Production Costs... Concerns Over Tentpole Projects

The company’s first self-produced project is in the early planning stage, with the lineup expected to be announced in October. To this end, three Executive Producer (EP) teams have been formed. They are given more responsibility and production capability than Chief Producers (CP). EPs take charge of each project from planning to final stages, similar to American studios.

CEO Kim Cheol-yeon said, "The biggest effort over the past two months since the company’s establishment has been recruiting excellent talent," adding, "We brought in producers who have developed dramas for over 10 years at places like Sony Pictures and producers who have challenged new media as EPs, each with their own strengths." Even during lunch, if an interesting idea comes up, they have 'no-holds-barred' discussions. They have also broken down genre barriers.

Poster of the three-part drama "Shh, Please Take Care of That Guy," based on the web novel IP discovered by StoryWiz. Photo by KT

Increasing content production costs are an unavoidable common concern in the industry. Actor fees are rising, and production costs soar with star directors and writers. CEO Yoon Yong-pil expressed a cautious stance on recent disputes over content usage fees between the content industry, represented by CJ ENM, and IPTV platforms, saying, "It should be resolved amicably."

Concerns about tentpole projects (key works that support cash flow for the year) are an extension of this issue. Yoon said, "Just because a project costs a lot doesn’t make it a tentpole. We want to present works that can compete with world-building and story," citing Netflix’s "Sweet Tooth: The Boy with Antlers" as an impressive example. CEO Kim emphasized, "We don’t just think about making blockbusters. We are ready to boldly spend the budget when necessary to create meaningful, fun, and well-selling content."

'IP Sharing Instead of Exclusivity'... Pursuing Fair Coexistence

At the production stage, they maintain an open ecosystem policy of sharing original IP. The two CEOs stated at the KT Studio Genie launch briefing at the end of March, "We will share original IP and practice coexistence." This stance may seem unconventional. It has become common for companies to acquire others through mergers and acquisitions (M&A) to secure exclusive IP. Large companies thirsty for exclusive IP use their financial power to accumulate content in bulk.

KT Studio Genie plans to focus on long-term collaboration rather than acquiring small and medium-sized production companies outright. CEO Yoon said, "We avoid dependency. We focus on developing good IP with various partners and expanding our network." CEO Kim added, "Among companies and creators we have collaborated with for a long time, when they say they want to 'go independent and try something,' we look for ways to actively support them rather than buying the entire company."

Considering Platform Characteristics... Experimenting with Distribution Optimization

Making well-selling works is important, but actually "selling well" is also crucial. This involves considerations at the distribution stage. Earlier, KT Studio Genie revealed its recoup structure and stated it would utilize its platforms, including broadcast channels (SkyTV), IPTV (Olleh TV, Skylife), and OTT (Season).

In the past, there was a joke that "one out of ten movies becomes a hit," indicating how difficult success is. KT Studio Genie uses big data analysis to increase hit rates. CEO Kim explained, "The primary scope of improving prediction accuracy now is to determine which distribution channels best expose and appeal to people for specific content, optimizing distribution paths accordingly," adding, "It’s not about trying to win on all platforms."

Meanwhile, they are also discussing exporting produced content to Southeast Asia, the Americas, and Europe. CEO Kim said, "We are directly negotiating with platforms in each region," and added, "OTT is the most powerful medium for delivering Korean content regardless of country, and in some countries, we are also discussing with broadcasters." They are also considering co-production options from the content planning stage.