Naver Webtoon Achieves Record High Performance in Japan... Transaction Amount Approaches 1 Trillion Won

Hit Works Like 'Ip Hak Yong Byeong' Achieved Record High Sales Last Year in Japan
IP Sector Gains Attention in Targeting Japanese Market... Expectations for This Year's Performance Rise

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Naver Webtoon recorded a positive EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the first time in six years since its spin-off. Analysts attribute this to the record-breaking performance in the Japanese market acting as a driving force.

According to industry sources on the 6th, from January to November last year, Naver Webtoon's transaction amount in Japan reached 100 billion yen (approximately 898.1 billion KRW), marking the highest record since its entry into the market. It was recorded at 80 billion yen in 2021 and 90 billion yen in 2022, showing an upward trend each year, and last year, the transaction amount surpassed 100 billion yen for the first time. Including December, it is expected to reach about 1 trillion KRW. Accordingly, the share of the Japanese market in Naver Webtoon's total transaction amount is also expected to approach 60% last year, up from 56% in 2021.

The growth of Korean webtoons in the Japanese market is considered significant. The Japanese manga market boasts the largest scale worldwide. As of 2022, the size of the Japanese manga market was estimated at 677 billion yen (approximately 6.0797 trillion KRW). In particular, the digital manga market size grew by about 9% from the previous year to 447.9 billion yen (approximately 4.0239 trillion KRW). The average revenue per paying user (ARPPU) of Japanese users is overwhelmingly higher compared to other countries. While the global average ARPPU is about 13,000 KRW, Japanese users spend between 35,000 and 48,000 KRW, more than three times higher.

At the 2023 earnings conference call held earlier, Choi Soo-yeon, CEO of Naver, stated, "Last year, the annual transaction amount in Japan surpassed 100 billion yen, breaking previous records once again through the synergy of Korean cross-border works and the expansion of the local creator ecosystem in the manga powerhouse Japan."

Based on the performance in Japan, Naver Webtoon's global cumulative transaction amount soared to 1.7857 trillion KRW last year. After recording 420.3 billion KRW in the first quarter, it has achieved transaction amounts exceeding 440 billion KRW every quarter.

Not only webtoons but also the business sector utilizing intellectual property (IP) is expected to record its highest performance this year. When original IP is adapted into video content, it can lead to increased original work inflow and production revenue growth. Last year, Naver Webtoon attracted attention by releasing original dramas such as ‘Hounds’, ‘D.P. Season 2’, and ‘Iduna!’ through the global online streaming service Netflix. The IP sector is especially highly anticipated this year, with the drama ‘The Killer’s Shopping List’ scheduled to be released on Netflix.

Additionally, other Naver Webtoon original IPs such as ‘Money Game’, ‘Dakgangjeong’, and ‘Severe Trauma Center’ will be released as dramas this year, while ‘Tower of God Season 2’, ‘True Beauty’, and ‘Yumi’s Cells’ will be released as animations. Many of these productions involved Studio N, a 100% subsidiary of Naver Webtoon.

CEO Choi said, "In 2024, we will continue to steadily advance our video adaptation business and diversify into merchandise, publishing, and gaming as the next steps to enhance the influence of our IP."

Brokerage firms have also raised their revenue forecasts. Shinhan Investment Corp. predicted that Naver Webtoon's revenue last year reached 1.5031 trillion KRW and will increase to 1.5726 trillion KRW this year. Hyundai Motor Securities forecasted that Naver's content division revenue will exceed 2 trillion KRW this year.