Kakao Entertainment Targets North America with "'n-Minute Unlimited Webtoons'... Aiming to Earn 100 Billion Won Annually"

Kang Jeong-gu, Head of Kakao Entertainment Global Story Business Division
"Expanding North American Webtoon Base by Introducing Subscription Model"
"Targeting Global Market with 'Ropan' Like Marvel's Hero Genre"

Kakao Entertainment, which provides webtoons and web novels, plans to introduce a new subscription model such as the ‘n-minute unlimited viewing plan’ in the North American market. This model offers unlimited content access but charges based on time units. This subscription model introduction is the first attempt among major webtoon platforms in North America.

Kang Jeong-gu, Head of the Global Story Business Division at Kakao Entertainment, recently revealed this strategy for targeting the North American market in an interview with Asia Economy. He also serves as the Chief Content Officer (COO) of Tapas Entertainment, Kakao Entertainment’s North American subsidiary. Tapas operates three platforms locally: Tapas, Radish, and Uxia World.

Kang Jeong-gu, Head of Global Story Business Division at Kakao Entertainment
[Photo by Kakao Entertainment]

Regarding the North American market strategy, he stated, "If last year was the inaugural year for intellectual property (IP) supply, this year we will lead innovation in revenue models."

Head Kang plans to introduce subscription models to Tapas and others this year. Currently, most webtoon and web novel platforms rely on a microtransaction model where users pay per episode, but he believes this model is unfamiliar in North America. To expand the market base, he sees the need for a ‘hybrid business strategy’ that incorporates subscriptions. Kang said, "By setting a cap on subscriptions, we can attract light users (those who casually enjoy webtoons)," adding, "We plan to test various subscription methods such as the n-minute unlimited viewing plan."

In January, Tapas recorded its highest daily transaction amount ever, surpassing 200 million KRW. This milestone came three years after acquiring Tapas and Radish in 2021 to target the local market. Kang emphasized, "For major titles, the transaction amount on launch day rose to levels comparable to domestic platforms," highlighting that "Tapas has established its position in North America, where webtoons and web novels are still unfamiliar."

Tapas has become a gateway for K-content’s entry into North America. As of March, there are about 1,100 Korean works in service. Although they account for only 2% of the total works, they drive 85% of the revenue. Representative hits include ‘Solo Leveling’ and ‘Business Proposal.’ Kakao Entertainment plans to supply about 1,000 domestic IPs combining webtoons and web novels this year. With over 30,000 verified K-webtoon IPs secured, there is still a long way to go.

The company is also focusing on the web novel market. Head Kang expressed confidence, saying, "Because we have the DNA to succeed in IP business on KakaoPage, the North American web novel market is definitely worth targeting."

Kakao Entertainment’s short-term goal in North America is to achieve an annual transaction amount of 100 billion KRW. Last year, Tapas Entertainment recorded sales of 71.1 billion KRW. Kang added, "Just as Marvel achieved tremendous success with male hero stories, Kakao Entertainment will target the global market by leading with Korean female-oriented romance fantasy works," and concluded, "We will find Kakao Entertainment’s unique success formula with competitive K-content."

Kang Jeong-gu, Head of Global Story Business Division at Kakao Entertainment
Photo by Kakao Entertainment