[K-Content Future]④Global Webtoons Also in the Palm of Naver and Kakao

Kakao Entertainment Raises 1.2 Trillion Won... Webtoons and Web Novels Play Key Role
'Solo Leveling' Performs Well... Animated Adaptation This Year
Naver and Others Expand, Focus on Localization and Global IP Acquisition

Kakao Entertainment raised 1.2 trillion won overseas last month. It achieved a monumental result amid a global downturn in investment sentiment. Bae Jae-hyun, Senior Vice President and Head of Kakao Investment Governance, stated, "We were recognized for our differentiated intellectual property (IP) value chain competitiveness and growth potential." Kakao Entertainment is rich in IP. The core consists of about 10,000 webtoons and web novels. They independently plan and produce various content such as comics, movies, and dramas.

Poster of Kakao Entertainment's flagship webtoon "Solo Leveling." The popularity continues this year with the serialization of a side story.

The most successful IP is "Solo Leveling." It began as a web novel serialized on KakaoPage in 2016. It was adapted into a webtoon in 2018 upon completion. Released in the US, Europe, Japan, and other regions, it recorded 14.3 billion views and sales exceeding 40 billion won. It played a pivotal role in showcasing the value and potential of K-webtoons worldwide. Interest was also strong offline. The printed book sold over 1 million copies in Japan alone. In the US, it ranked 7th in graphic novel sales. Yu Seong-hoon, Head of the European Business Center at the Korea Creative Content Agency, said, "In France, the comic publisher Delcourt published it, selling over 1 million copies." Another strong performance is expected this year. The Japanese production company A-1 Pictures, known for hits like "The Seven Deadly Sins" and "Erased," will release an animation. This is IP diversification advanced by high demand. Over 200,000 people requested it on a US petition site.

Animation adaptations naturally lead to renewed attention to the original IP. For example, "Lookism," which aired on Netflix in December last year, saw its webtoon's average monthly related sales during the two months after release far exceed those of the previous 11 months. Choi Jun-sik, PR Manager at The Grim Entertainment, said, "Interest sparked by watching the animation influenced subscriber growth," adding, "We are exploring win-win strategies with other works as well." The so-called "drama comics," which reimagine dramas as webtoons, also generate interest on a similar principle. For instance, "Extraordinary Attorney Woo" maintained its popularity as the number one Thursday webtoon on Naver even after the drama ended, continuing to generate buzz. There are also cases like "Our Beloved Summer," where the drama and webtoon were created together. They offer new enjoyment through different prequels and other content, creating new synergy.

A scene from 'Lookism,' a flagship work of Naver Webtoon. It gained great popularity and was produced as a Netflix original animated series.

With global popularity and IP diversification, the domestic webtoon industry is growing rapidly. According to the Korea Creative Content Agency, sales in 2021 reached 1.566 trillion won, more than quadrupling from 379.9 billion won in 2017. This is the result of Korean companies making a direct breakthrough into the global market. Last year, Korean companies dominated the top five sales on French webtoon platforms. The ranking was Webtoon (Naver Webtoon), Delitoon (Kidaristudio), Piccoma (Kakao Piccoma), Pocket Comics (NHN Comico), and Tapas (Contents First). Yu said, "Locals recognize Korea as the home of webtoons," adding, "They see it as a market with great potential and want to learn various systems."

The most competitive country is the United States. Kakao Entertainment spent over 1 trillion won acquiring the webtoon platform Tapas and the web novel platform Radish. Tapas has over 8.6 million users, with about 60,000 creators active. Radish is known as the Netflix of web novels, holding over 10,000 IPs. More than 90% of its revenue comes from company-owned IP. Naver Webtoon acquired the Canadian web novel platform Wattpad and established Wattpad Webtoon Studios. It has a staggering 90 million registered users. The number of writers and works reaches 5 million and 1 billion, respectively, making it a massive platform.

'Lore Olympus' won the Best Webcomic award at last year's Eisner Awards in the United States. It was the first time a vertical scroll webtoon received this award.

The reason these two companies are eager to establish bases is localization and global IP expansion. Their approaches are quite different. Kakao Entertainment focuses on completed IPs with many paid subscribers, while Naver Webtoon emphasizes a community that anyone can easily access. This is similar to the strategies they have pursued domestically. Even without immediate operating profits, they expect the proportion of paying users to stabilize as in Korea. This timing could be accelerated by global IPs like "Lore Olympus." Discovered by Naver Webtoon, it achieved 1.2 billion views. Last year, it swept major US comic industry trophies such as the Eisner Award for Best Webcomic, the Harvey Award, and the Ringo Award. This undoubtedly signals more global business opportunities ahead.