Into the Asian Sentiment World... CJ ENM Writes a New Chapter in Hallyu Drama [The Future of K-Content①]

Despite the Success of 'Parasite' and 'Squid Game', Profits Remain Low...
CJ ENM Declares the First Year of Global Expansion
Maximizing 30 Years of Production Capabilities Through Localization,
Targeting the Asian Market with Customized Content
Direct Production Through Acquisition of Local Studios...
Taking on the World with a Two-Pronged Strategy

Editor's NoteSouth Korea's content industry is in crisis. Due to a harsh profit structure and rising production costs, terrestrial broadcasters, production companies, and cinemas have been significantly contracted. The continuation of the Korean Wave is now uncertain. In the past, breakthroughs such as the opening of the Japanese market or the emergence of Netflix provided opportunities, but now the situation demands forging our own path. Media industry critic Dr. Cho Young-shin diagnosed in his book 'After Netflix' that "a real crisis has come to us who have never properly pioneered the market." A crisis is also a 'dangerous opportunity.' As K-content spreads worldwide through Netflix and social networking services (SNS), both possibilities and limitations have become clear, and opportunities to enter previously impossible markets have opened. We must devise strategies to leap forward from this difficult reality and explore the future of K-content through the movements of leading companies.

The movie 'Save the Green Planet!' was remade as 'Bugonia' in North America.
[Photo by CJ ENM]

South Korea is a content powerhouse, but that significance is limited and relative. The global content market is divided into North America and the rest, with South Korea only holding an advantage in the latter. Only businesses interested in the East Asian and Southeast Asian markets pay attention. Despite global successes like 'Parasite' and 'Squid Game,' content revenues rarely increase. However, relying solely on Netflix or focusing only on Asia is not an option. We must identify and utilize growth opportunities to enter the global market.

The fastest-moving company is CJ ENM. This year marks the first year of global expansion, pushing forward content production and distribution, Tving's overseas expansion, and the expansion of the global MCS (Music Creative eco-System) based HIP (Human Intellectual Property). Hwang Deuk-soo, Chief Financial Officer (CFO), stated in the Q4 earnings conference call last year, "We will strengthen local content production through studios in Korea, Japan, and the United States, while expanding content distribution in new markets such as India, Latin America, and the Middle East."

This strategy maximizes the production capabilities accumulated over the past 30 years through localization. This attempt is possible because various types of content have shown remarkable results worldwide. Daniel Anderson, a reporter for the U.S. 'NME' covering K-content news, said, "(CJ ENM content) features a strong visual identity and meticulous branding. Especially dramas consistently blend relatable storytelling and psychological thrillers, providing viewers with exciting escapes or comfort regardless of genre." Marianna Baroli, a reporter for Italy's 'Panorama,' evaluated, "It offers an immersive narrative experience that resonates on multiple levels through innovative storytelling, profound cultural nuances, and excellent production quality." She added, "If these characteristics are maintained while strategically integrating cultural insights from other countries and building partnerships with influential media and cultural institutions, new blossoms can bloom."

'Parasite' Team Cheering for Academy Award for Best Picture Photo by Yonhap News

The country CJ ENM focuses on most is the United States, a market larger than Korea. They promoted 'Parasite' with distributor NEON and co-produced 'Fast Lives' with production company A24, glimpsing sufficient potential. Ko Kyung-beom, Global Project Manager, explained, "'Parasite' winning four Academy Awards increased local stakeholders' interest in Korean content overall. 'Bugonia,' releasing in the second half of this year, is a product developed from discussions at that time." It is a remake of director Jang Joon-hwan's 'Save the Green Planet!' (2003). Director Yorgos Lanthimos and actress Emma Stone collaborated again on 'Poor Things' (2024), attracting attention even before filming. Ko, who joined as a producer, added, "CJ ENM led the entire planning and development process, and the next stages of adaptation, casting, and filming were carried out together with Square Peg and Element Pictures. It is significant as a Korean cultural product originally created for a global audience."

Sasha Lloyd, A24 International Representative

Remakes of proven intellectual property (IP) have high acceptance but cannot be the ultimate goal of localization. Accumulating market knowledge and cultural understanding to create works demanded by mainstream media is essential. CJ ENM concretizes this through two main routes. One is targeting the Asian market by developing customized content based on cultural and ethnic foundations. A model is Latin content, which has become part of popular culture. Since the 2000s, as the Latin population in the U.S. exceeded 10%, mainstream media began producing actively. The Asian population in the U.S. is about 7.2%. If current growth trends continue, it could reach 10% in about a decade. The potential to rise to mainstream culture in North America is significant.

Movie 'Fast Lives' Still Cut

Anderson said, "Seeing oneself reflected on screens from the perspective of Asian Americans is very important," adding, "K-content has already achieved remarkable success by providing diverse representations of Asians." Baroli also said, "Inclusion of Asian viewers by K-content is essential for global survival. Exchanges with various cultures within Asia enrich content stories and lead to broad empathy." Indeed, CJ ENM's 'Fast Lives,' released last year, received great attention by being nominated for Academy Awards for Best Picture and Best Screenplay. Directed by Korean-American director Celine Song, it tells the story of first loves Nayoung and Haesung, who reunite in New York after 24 years and reflect on their relationship. It was praised in North America for portraying the universal emotions of Asian immigrants with global-level production capabilities. Sasha Lloyd, A24 International's representative, said, "Every audience looks for stories reflecting their experiences. A film about Asians can resonate not only in the country concerned but also with Asian communities worldwide. If it attracts interest across continents like this, new paths for international cooperation and distribution can open."

Another route chosen by CJ ENM is local production through the acquisition of the prominent local production company Fifth Season. Although achievements were limited during the U.S. writers' and actors' strike, production resumed last year, and online video service (OTT) supply and global sales are active. This year, about twenty TV series, films, and documentaries will be released through Netflix, Apple TV+, and others. 'Severance' Season 2, released in January, was very popular, and Season 3 production has already been confirmed. Films such as Ben Affleck's 'Animals' and Joe Wright's 'Alignment' will finish filming within the year and be released around next year.

Graham Taylor, Co-CEO of Fifth Season

Future lineups will also include projects utilizing CJ ENM's IP. Ko said, "We are reviewing domestic works and works by Korean-American writers that could be accepted locally." Graham Taylor, co-CEO of Fifth Season, said, "We are in the stage of acquiring solid IP and scheduling development. We are carefully considering which languages to include." The most important factor is the universal emotions unique to Asians. For example, if Indonesia's cultural characteristics are realized through the Korean production system, the likelihood of mainstream media selecting the content increases, and in the North American market, Asians can be targeted centering on Indonesian and Korean communities. Local production companies also see this as a foothold to meet the changing industry's demands and can gain momentum relatively early. This is also the blueprint for Korean content envisioned by Dr. Cho. To expand the related market, above all, North American mainstream media operators must purchase and distribute, advising domestic companies, "You must become an Asian content operator combining Korea's excellent production capabilities and Asian culture."