"Boundary Between Distribution and Production Is Collapsing"...Webtoon Platforms Dive Directly Into Video Production

Originals surge on the back of hit dramas
Proven IP and fandom boost odds of success
Internalizing blockbuster IP at Naver and Kakao

Still cut from Munhwa Broadcasting Corporation drama 'Judge Lee Hanyeong'

Dramas based on webtoons and web novels are driving a resurgence in the popularity of their original works.

According to Naver Webtoon on the 19th, in the two weeks following the broadcast of the Munhwa Broadcasting Corporation drama "Judge Lee Hanyoung" last month, downloads of the original web novel and views of the webtoon of the same title increased by 147 times and more than 20 times, respectively, compared to before the show aired. The original work, which finished serialization in 2018, has attracted a large number of new readers on the back of the drama's success eight years later. The tvN drama "Spring Fever" likewise saw its Naver Webtoon views jump by about tenfold in the two weeks after it was released.

Recently, webtoon and web novel intellectual property (IP) has come to be regarded as a guaranteed box office draw. This is because storylines are verified by millions of readers, and each scene can function as a storyboard for video. A solid initial fandom also helps eliminate uncertainty in drama production. According to the "2025 Content IP Transaction Status Survey" by the Korea Creative Content Agency, the public watched original IP-based dramas out of "curiosity about differences from the original work (38.4%)" and "fandom (34.6%)."

With this sustained popularity, the webtoon industry is no longer content to remain just an IP supplier. It is moving to the forefront of production to capture the added value of hit video content directly. The strategy is to overhaul the existing structure in which individual creators led rights contracts, or external production companies and online video services (OTT) took most of the adaptation revenue.

Webtoon 'Judge Lee Hanyoung' poster

The core is internalizing video production. Naver Webtoon, through its subsidiary Studio N, is directly overseeing the live-action adaptation of the Disney+ original series "Remarried Empress" and the Tving series "The Legendary Cook." Kakao Entertainment has likewise jointly participated in producing the Netflix series "Rats," which is based on one of its own webtoons.

This production-oriented trend among webtoon platforms is expected to intensify. The larger the IP with guaranteed commercial success, the stronger the tendency not to transfer adaptation rights to external production companies, but instead to handle everything independently from planning to screen adaptation. An industry insider diagnosed the situation by saying, "Platforms are positioning themselves as studios and sweeping up blockbuster IP," adding, "Going forward, the boundary between distribution and production will completely collapse."