Naver Webtoon's Ecosystem Building Strategy: "Strengths Different from Traditional Comics"

75% of Indonesian Webtoon Readers Use It
'Soaring Success' in Indonesia with Localization Strategy

Naver Webtoon is leading the Southeast Asian market in market share through its localization strategy. This is seen as dispelling concerns that the position of K-webtoons might shrink following Kakao Entertainment's decision to withdraw from Indonesia and other regions.

According to Data AI, a global data and analytics platform, from January to September this year, the proportion of Naver Webtoon users among active users of webtoon-related applications in Indonesia was 75.17%. This figure is overwhelmingly higher compared to China's Mangatoon (10.92%) and Kakao Webtoon (6.87%). It also increased its market share by 2 percentage points compared to January this year. In Thailand, it recorded a market share of over 60%.

Naver Webtoon's strong presence in Southeast Asia is even more positive considering the future market growth potential. According to the 2024 Comics Industry White Paper, the Southeast Asian digital book market is expected to grow from $406 million (approximately 560.4 billion KRW) this year to $452 million by 2026.

Naver Webtoon's high market share is attributed to its effective localization strategy. The Comics Industry White Paper noted, "Naver Webtoon has been recognized for its strengths such as vibrant colors and convenience, which differ from traditional comic books," and added, "It is implementing various strategies such as adapting webtoons into videos through local production companies and converting web novels into webtoons, as well as discovering local artists."

Naver Webtoon is building a webtoon ecosystem through a system called 'Canvas,' which discovers local amateur artists. Hit works by local artists such as 'Pastry Gaje (Indonesia)' and 'Teen Mom (Thailand)' have also been adapted into videos. Additionally, cross-border webtoons, where local artists' works are translated into other languages, are increasing. A representative example is the Taiwanese original webtoon 'Eolbienmiwi (耳邊蜜語),' which deals with romance between men and women; it entered the Japanese market in October last year and ranked first in the female popularity category and second overall after starting serialization.

However, domestic webtoon platforms other than Naver Webtoon are struggling in Southeast Asia. Kakao Entertainment decided to withdraw from the Indonesian and Taiwanese markets to focus on its North American business, and NHN sold its webtoon platform subsidiaries in Vietnam and Thailand starting in 2022. There are concerns that the withdrawal of domestic webtoon platforms may hinder future re-entry into the Southeast Asian market.