From Baby Shark to Nano List [K, to Hollywood]

Success in IP Industrialization... From Single Content to Global Brand
Accelerated Industrialization Brings Greater Structural Risks

On-site at 'U-KNOCK 2025 in USA'

There has been a significant shift in the annual revenue structure statistics of the Korea Creative Content Agency. Whereas in the past, broadcasting programming and production cost settlements were central, recently, intellectual property (IP) distribution, overseas licensing, merchandise, performances, and game collaborations have become key sources of revenue. The industry views this as a sign that K-content is expanding beyond the production sector into the IP industry.

From Production to IP Management

The Korea Creative Content Agency considers the market characteristics of each region when selecting participants for U-KNOCK. Woo Sungbae, Head of Content Finance Support Team, explained, "In the case of Japan, all the companies were IP production firms, while in Singapore and the United States, most companies were engaged in technology service businesses through content."

This tailored selection process is leading to tangible results. A prime example is The Pinkfong Company's flagship IP 'Baby Shark,' which grew from a single children's song into a global brand. The video, released on YouTube in 2016, has surpassed 10 billion views. The company expanded its business into animation, performances, toys, and educational content. Its TV animation, co-produced with Nickelodeon in the United States, has also established a strong presence in North America.

The industry evaluates this success as a "structural expansion beyond virality." Rather than ending as a temporary phenomenon, the company established a long-term revenue structure through IP management, licensing, and distribution partnerships. This is also why content companies are transforming themselves from production studios into "IP management companies."

On-site at 'U-KNOCK 2025 in USA'

From Outsourcing to Proprietary IP

Shin Changhwan, CEO of Studio Gale, has spent 15 years building a pipeline for developing proprietary IP. He explained, "Since the third year after our founding in 2010, we produced 'Grami's Circus Show,' which was a finalist at the Annecy International Animation Film Festival in France in 2012, and won the Grand Prize for TV Series at Cartoons on the Bay in Italy in 2014."

He is currently focusing on adult-oriented animation. He is producing 'Nano List,' targeting audiences aged 15 and older, with investment from the domestic OTT platform Tving. Shin noted, "Recently in Korea, Japanese theatrical animations such as 'Slam Dunk' and 'Demon Slayer' have been drawing both teenagers and adults to theaters," indicating that he sees sufficient demand. He added, "Unlike outsourcing, developing proprietary IP is extremely challenging, from securing investment to coordinating with co-producers, broadcasters, and investors, and managing risks," emphasizing that he is accumulating the necessary know-how.

Choi Youngho, CEO of Shopfanfic, is pursuing a similar path, focusing on nurturing a small number of IPs intensively. He stated, "Rather than developing a variety of IPs and hoping one succeeds, our goal is to build an environment and capability within the company to grow our own IP." Regarding expansion into North America, he said, "K-culture is our initial entry strategy. In the mid- to long-term, we aim to build a diverse, localized IP portfolio," adding, "Currently, music and data files are the most promising categories."

According to the "2024 Korea Content Industry White Paper" published by the Korea Creative Content Agency, domestic content companies are actively expanding IP-based ancillary businesses such as merchandising, performances, and licensing beyond the production stage. As popular IPs expand into the OTT, toy, and education markets, the share of revenue from commercialization and secondary derivative works is steadily increasing.

On-site at 'U-KNOCK 2025 in USA'

IP Protection and Structural Risks

As the industrialization of IP accelerates, structural risks are also on the rise. According to the "Content Dispute Mediation Casebook" published by the Korea Creative Content Agency, the number of mediation and consultation cases continues to increase. As production, distribution, and licensing become more complex, conflicts over rights allocation, equity structure, and contract terms for overseas co-productions are becoming more frequent.

Strengthening the institutional foundation remains a challenge. Although content IP is now being treated as an asset in financial markets, the institutional and tax systems are still incomplete. There is also a risk that opportunities may become concentrated among large corporations with greater capital strength.

U-KNOCK highlights these issues through negotiations with overseas companies. It clearly demonstrates that the K-content industry is shifting from a "work-centered" to an "IP-centered" structure. In the past, content created the market, but now IP gives birth to content, and technology extends its lifespan.

If 'Baby Shark' proved the "financialization of content," companies today are broadening their focus toward "IP expansion through technology." The next step is clear: establishing systems to protect IP and reproduce it based on data.