Netflix is set to invest $2.5 billion in South Korea over the next four years to produce more Korean dramas, movies and reality shows, doubling its previous commitment to the market since it arrived in 2016.
The announcement was made following a meeting between South Korean President Yoon Suk Yeol and Netflix co-CEO Ted Sarandos in Washington.
Sarandos praised South Korean content, which he said was “representing the global cultural zeitgeist,” citing the success of shows such as “Squid Game”, “The Glory” and “Physical: 100.”
“Squid Game” became the company’s top show worldwide in 2021, and “The Glory” was the platform’s most-watched show globally the week it was released in March. Netflix is increasingly producing original international content and relying on prospects overseas as its growth in North America and Europe slows.
“We were able to make this decision because we have great confidence that the Korean creative industry will continue to tell great stories,” he said.
The investment in South Korea is a “huge opportunity” not just for Netflix, but South Korea’s content industry and creators, according to President Yoon.
The move comes as Netflix added 1.46 million paid subscribers in Asia Pacific in the first quarter, making it the company’s fastest-growing region as sign-ups elsewhere stalled, according to its most recent earnings.
Audience data also showed “over 60% of all Netflix members” watched Korean shows or films last year.
The new investment highlights Netflix’s increasing confidence in Korean content, which is being enthusiastically consumed by fans worldwide. Four of the 10 most-watched non-English TV shows ever on Netflix are Korean, namely “Squid Game,” “All of Us Are Dead,” “The Glory,” and “Extraordinary Attorney Woo”, according to the firm.
In January, the company announced it was planning its largest-ever lineup of South Korean content, with 34 new and returning titles set to roll out this year.
Meanwhile, the company also reported seeing a “cancel reaction” from subscribers after announcing it will crack down on password sharing. Netflix is working on different solutions to reduce account sharing, such as two-factor authentication, which it has already begun testing.