[K-Content Era] Changed Korean Production Companies... Own 'Cash Cow' IP

Netflix Non-English TV Series Rankings for the Second Week of This Month
Five Korean Dramas in the Top 10 Including 'Woo Young-woo'
Domestic Broadcasters and Producers Own IP Except for Original 'Suriname'
AStory, Creator of 'Woo Young-woo', Learned from 'Kingdom'... Securing IP

On the 31st, citizens are visiting the booth related to the drama Extraordinary Attorney Woo at the international broadcasting and video market 'BCWW (BroadCast WorldWide) 2022' held at Dongdaemun Design Plaza in Seoul. Photo by Mo Honam munonam@

K-content, including ‘Squid Game,’ which won six Emmy Awards known as the ‘Oscars of the broadcasting industry,’ is leading global trends.

The most-watched non-English TV series on Netflix during the second week of this month (5th?11th) was ‘Extraordinary Attorney Woo (31.64 million hours),’ holding the top spot for the seventh consecutive week. This marks the ninth time overall. Five Korean dramas, including ‘Woo Young-woo,’ ranked within the top 10.

‘Gentleman and Ladies’ ranked 4th (21.48 million hours), ‘Suriname’ 5th (20.60 million hours), ‘Alchemy of Souls’ 6th (16.84 million hours), and ‘Little Women’ 7th (9.97 million hours). Among these, ‘Suriname’ is the only Netflix original. The others are owned by domestic broadcasters or production companies as intellectual property (IP).

Netflix permanently holds content IP such as original rights and copyrights. Examples include ‘Squid Game,’ ‘Kingdom,’ and ‘Space Sweepers,’ which were made in Korea but fully funded by Netflix. Hollywood values IP acquisition as much as production. Well-assembled content IP packages can generate financial value ranging from hundreds of billions to trillions of Korean won.

[Image source=Yonhap News]

The concept of IP was organized late in Korea. As a result, many works handed over all IP through delivery contracts. Recently, the situation has changed with the emergence of large-scale studios. In the past, dramas and films were produced and distributed mainly by broadcasters or small production companies. Now, large studios with multiple production companies and distribution channels oversee the entire process from IP discovery to investment and production.

CJ ENM-affiliated Studio Dragon is a representative case that grew by acquiring small and medium-sized drama production companies from its inception. Imagineus, led by Choi Jin-hee, the first CEO of Studio Dragon, secured 50 billion won in investment from J&PE in June. Studio LuluLala JoongAng (formerly JTBC Studio·SLL) also has more than 10 production companies under its umbrella.

There are cases where small and medium-sized production companies refuse Netflix original series production proposals and secure IP themselves. Ace Story, the creator of ‘Woo Young-woo,’ is a prime example. Although they previously produced ‘Kingdom,’ they only secured game-related IP and could not generate additional revenue. To avoid repeating this, they planned ‘Woo Young-woo’ while seeking domestic channels to purchase only broadcasting rights. Ace Story chose the relatively unknown cable channel ENA. Instead, they sold broadcasting rights to Netflix to reduce risk and increase recognition. The choice was successful for both Ace Story and ENA.

[Image source=Yonhap News]

ENA channel operator SkyTV recorded advertising revenue of 15.3 billion won in the second quarter, the highest quarterly revenue ever. This was thanks to increased advertising rates driven by word-of-mouth for the drama Woo Young-woo. SkyTV plans to raise the ENA channel brand value to around 1 trillion won by 2025.

Lee Sang-baek, CEO of Ace Story, said, "IP becomes a ‘cash cow’ and forms the foundation for production companies to grow," adding, "Without it, companies survive by taking outsourced work with minimal profits, repeating a vicious cycle of outsourcing." Ace Story has received various proposals, including remakes, from dozens of companies worldwide, including the U.S., Japan, China, Turkey, the Philippines, and Germany. Their webtoon has already been exported to five countries. They are also negotiating contracts in the U.S.

Ace Story is preparing three versions of a musical with the original cast. CEO Lee said, "If we secure two or three more theaters and release the musical, the area could become ‘Woo Young-woo Town’ and be used as a tourist attraction."

For more cases like ‘Woo Young-woo’ to emerge, government support is essential. Ace Story was able to produce content with low-interest rates thanks to loans supported by the Korea Creative Content Agency. CEO Lee emphasized, "No matter how excellent the directing is, it cannot be expressed without securing production costs," adding, "If the government helps Korean works to continue progressing, there is a vision."