[Initial Moment] The Power of Original Content That Changes the World

[Asia Economy Reporter Lim Hye-seon] What do ‘HYBE’ and ‘The Pinkfong Company’ have in common? They both possess powerful content intellectual property (IP) such as BTS and Pinkfong. Both companies were selected this year by TIME as one of the ‘100 Most Influential Companies in the World.’

The reason Netflix has transformed into a major player in the media industry today lies in the success of its original content, ‘House of Cards.’ Director David Fincher won an Emmy Award for directing, and lead actor Kevin Spacey received the Golden Globe for Best Actor, demonstrating the potential for the streaming service Netflix to surpass leading TV broadcasters and film studios. Now, Netflix dominates the global media industry.

Well-made original content can change a company on a small scale and the world on a large scale. KT spent enormous amounts of money over decades on corporate branding to shed its image as a local telephone company, but it was one lawyer with autism spectrum disorder, Woo Young-woo, who made that aspiration a reality. This is the story of the ENA drama ‘Extraordinary Attorney Woo.’ ‘Woo Young-woo’ surpassed a 15% viewership rating, setting records with each episode.

The drama rose to 3rd place in Netflix’s global rankings. It recorded 23.95 million weekly viewing hours, ranking first among Netflix’s non-English language titles. Among Korean content, ‘Woo Young-woo’ is the first simple broadcast work?not a Netflix-produced original?to top the weekly chart.

Though intangible and invisible, the influence of content is enormous. Through content, people worldwide share a cultural zeitgeist. It also vertically elevates corporate value and drives national economic growth.

K-content has also showcased Korea’s strength to the world. Netflix CEO Reed Hastings recently stated at an official event, “It is impossible to discuss global entertainment without mentioning Korea,” reflecting K-content’s current position in the global market. Korea maintains 7th place in the world’s largest content market.

Global interest in K-content has also increased worldwide demand for Korean food and culture. Exports of ramen, frequently featured in movies and dramas, reached $383.4 million (approximately 497.6 billion KRW) in the first half of this year, marking an all-time high. Thanks to the ‘Korean Wave,’ the number of young people worldwide studying the Korean language has also increased.

However, challenges remain. Although Korean companies’ content production capabilities have been proven multiple times, the actual benefits are taken by foreign companies because Korea has failed to secure IP rights. Netflix earned $900 million from the success of Squid Game, but the domestic production company received only $24 million. Netflix also took the overseas IP rights for ‘Woo Young-woo.’ Last year, the U.S. earned $4.043 billion from IP services from Korea, while their investment in Korea was only $314 million. The skill was shown by the bear, but only the trainer took the money, and we seem to be applauding and cheering.

Underlying this is the absence of a global platform. Content producers understand that IP is a key factor in international competition, but they judged that promoting the hard-earned content to the global market is more urgent. Although there are many calls to create a Korean Netflix, each party gathers separately in public spaces, turning their faces away and repeating only their own stories, continuing a frustrating stalemate. It is not too late yet. The government should take an interest and become a facilitator in growing the Korean platform market.