Netflix Inc (NASDAQ:NFLX) will invest US$2.5bln in South Korean films and television series following a surge in popularity for programmes such as Squid Game.
The investment is double what the streaming service has spent in the Asian country so far and reflects teh fact that it was revealed that Netflix users spent more time watching South Korean content than from any other country bar the US.
Korean TV garnered global recognition when Squid Game was released in 2021, gaining 1.6bln watchers in its first 28 days of release.
It remains Netflix’s most popular TV show even when compared to English-speaking hits like Stranger Things.
The announcement came after South Korea’s president Yoon Suk Yeol met with Netflix boss Ted Sarandos as part of a six-day visit to the US.
“Their stories are now at the heart of the global cultural zeitgeist,” Sarandos said.
South Korea’s entertainment industry has reached new heights in recent years, with the country’s exports from the industry amounting to a record US$12.4bln in 2021.
Around 60% of Netflix users watched a South Korean programme last year according to the company’s data.
Korean films achieving Western success is not necessarily new, twenty years ago Oldboy made US$15.4mln worldwide and earnt a rating of 8.4/10 on IMDb.
However, when Parasite won Best Picture at the Oscars it helped propel the country’s entertainment industry to take off globally.
Netflix shares have remained nearly flat in pre-market trading on Tuesday at US$329.