[2026 K-Webtoon] K-Webtoons Grow into Giants... From Snack Culture to a Super IP Powerhouse

The "Source Material" Powering Netflix and Chungmuro
Japan Accounts for 49.5% of Exports, North America 21%
Illegal Distribution and AI Copyright Threaten Sustainability

At the Javits Convention Center in New York, USA, last October, the webtoon entertainment exhibition booth at 'New York Comic Con (NYCC) 2025' was bustling with visitors. Photo by Yonhap News

Over the past two to three years, the "heart" of Korea's content industry has changed. Webtoons, once regarded as light "snack culture" enjoyed on smartphones, have now established themselves as core intellectual property (IP) spanning dramas, movies, and games. They have emerged as powerful "source material," not just for reading, but as the driving force behind global OTT platforms and Chungmuro capital.

According to the "2025 Webtoon Industry Survey" published by the Korea Creative Content Agency on December 31, 2024, the domestic webtoon industry generated approximately 2.2856 trillion won in revenue in 2024. This marks a 4.4% increase from the previous year's 2.1890 trillion won. While the explosive growth has somewhat moderated, the market has stabilized at the 2 trillion won level, signaling that the industry has entered a mature phase.

Jeon Jongseop, lead researcher of the Data Policy Team at the Korea Creative Content Agency, analyzed, "Due to the overall economic downturn, the industry focused more on strengthening its fundamentals rather than explosive outward growth," adding, "The industrial scalability and value-creation potential of webtoon IPs are becoming increasingly important."

The Scale of the Webtoon Industry Over the Past 8 Years

'The Core of One Source Multi-Use'... The Reliable Bet for Netflix and Chungmuro'

Recently, many box-office hits driving global OTT platforms and theaters have been based on webtoons. In particular, webtoons with proven fandoms and extensive storylines serve as solid collateral for reducing the risks associated with screen adaptations.

The industry's status is also evident in the numbers. Among the secondary works utilizing webtoon IP, "dramas" accounted for the largest share at 38.3%, followed by "characters and merchandise" at 18.4%, and "animation" at 10.7%. This demonstrates that webtoons have expanded beyond simple content to become a high value-added industry encompassing both visual media and the real economy.

The actions of webtoon companies support this trend. The most common new business venture was "production of secondary works using their own IP" at 24.3%. As seen in the case of the global hit "Solo Leveling," a single popular webtoon can expand into animation and games, generating massive profits. This "super IP ecosystem" has already become a core survival strategy in the industry.

Last October, visitors were exploring the popup store exhibition at the "2025 World Webtoon Festival" held at Lotte World Mall in Songpa-gu, Seoul. Photo by Yonhap News

Lee Jaesik, CEO of CNC Revolution, explained, "In the past, film and drama production companies would purchase webtoon rights solely for scenario material, but now the market landscape has shifted to an 'IP alliance' system, where webtoon creators and platforms share profits from the early planning stages." He added, "In particular, 'Itaewon Class' was a decisive moment proving that the success of a screen adaptation can directly lead to a surge in sales of the original work, creating a virtuous cycle of success. Recently, webtoon companies are no longer just providers of original works, but are increasingly involved in direct production and joint marketing, strengthening their ties with the visual media industry like never before."

Naver and Kakao Expand Beyond the Home of Manga to North America and Europe

Platform companies are also accelerating their global expansion. In 2024, Naver Webtoon (Webtoon Entertainment) solidified its position as a global company by listing on NASDAQ, while Kakao Entertainment is expanding its presence in North America, Japan, and Europe.

The survey found that nearly half (49.5%) of K-webtoon exports went to Japan, the "manga powerhouse," followed by North America at 21.0%. This suggests that domestic platforms have successfully penetrated the niches of Japan's manga and America's comics markets, establishing the smartphone-optimized vertical scroll "Korean webtoon format" as a global standard. Analysts attribute this success to the "cross-border" strategy of discovering local creators, rather than simply translating and distributing existing works.

2024 Webtoon Overseas Export Share by Country

'The Shadow of Spectacular Growth: Illegal Distribution Worth Trillions and the AI Dilemma'

However, the industry's advancement comes with major challenges that need to be addressed. While the industry has grown in size, structural risks threatening its fundamentals persist. The most urgent issue is the illegal distribution market, which has grown like a parasite. In the survey, 35.7% of webtoon companies cited "illegal copy sites" as the biggest obstacle to business development. Industry estimates put annual damages from illegal distribution at around 1 trillion won, a critical factor that erodes creators' profits and restricts platforms' reinvestment. Despite government crackdowns, operators are using increasingly sophisticated methods, such as hosting servers overseas, making effective enforcement difficult.

Confusion stemming from the technological transition is also evident. The industry's approach to adopting AI technology, seen as a future growth engine, is complex. While most expect AI to reduce working hours and improve efficiency, there are widespread concerns on the ground about copyright infringement and the erosion of creative originality. As a result, the industry remains in a prolonged "exploratory phase," hesitant to fully embrace AI.

CEO Lee Jaesik commented, "Although the technical quality has improved, there is a subtle sense of discord between an artist's unique style and AI-generated results, making it difficult to immediately integrate AI into existing workflows." He added, "While the use of AI in background work and other areas is quietly increasing, due to copyright issues and other concerns, there is still hesitation to publicly discuss or fully adopt AI technology."

The Korea Cartoonists Association and the Korea Webtoon Writers Association held a press conference last August in front of the Japanese Embassy in Jongno-gu, Seoul, demanding the domestic extradition of the operator of an illegal webtoon site. Photo by Yonhap News

The Keywords for 2026: 'Fundamentals' and 'Monetization'... 'Super IP Is the Way Forward'

Facing these internal and external challenges, the industry views 2026 as a turning point for structural reform. The goal is to make it the "first year of qualitative leap," fundamentally innovating revenue models beyond simple outward growth.

The core roadmap is the "studio-ization" of platforms. Rather than simply connecting creators and readers, platforms aim to transform into "total IP solution" companies that directly discover IP and lead the production of videos, games, and merchandise. Naver Webtoon's efforts to discover local IP in North America after its NASDAQ listing, and Kakao's internalization of video production capabilities, are part of this strategy. Like "Marvel," the "franchise business" model-infinitely expanding a universe around a single super IP-is expected to become the new industry standard this year.

The "super-localization" strategy, which goes beyond simple translation exports, is also likely to accelerate. This involves transplanting only the Korean webtoon production system, while local creators handle the stories and illustrations to suit local tastes. The intent is to build a global webtoon ecosystem that goes beyond K-webtoons and secures sustainable revenue streams.

Lead researcher Jeon Jongseop diagnosed, "The webtoon industry has now entered an 'advanced stage,' dominating the entire IP value chain beyond simply expanding distribution networks." He added, "To realize this vision, it is essential to not only discover super IPs but also to establish strong regulations to eradicate illegal distribution and reach agreements on AI copyright-securing 'policy leadership' is crucial."