The zombie period drama "Kingdom" (2019-21) laid the groundwork. "Squid Game" (2021-) was the breakout hit.

But was it just a one-off success?


Hardly, then came "Culinary Class Wars" (2024), "The Trauma Code: Heroes on Call" and "When Life Gives You Tangerines," making Korean content undoubtedly a mainstay on global streaming platform Netflix.

Next year marks a decade since the streaming giant launched its service in Korea, without anticipating just how successful Korean-made content would become in such a short period of time.

The platform has certainly given Korean content new wings. Without it, not only Netflix originals but also titles that first aired on local broadcasters or domestic rivals may never have reached international audiences.

Then, there would not have been "Queen of Tears" (2024) nor "Lovely Runner" (2024).

At the same time, however, the U.S. streaming platform has reshaped Korea’s content industry — not necessarily in a good way — as local producers and distributors are left to struggle with significantly raised costs of content-making.

The prolificness of the platform has cultivated a monopolistic structure, where the absence of Netflix from any stage of the production or distribution process compromises the chances of a show, sending them well under the radar.

So, is Netflix a friend or foe of the Korean content industry?

A Netflix boost for Korean content

Not long ago, Korean content was often subject to a "cultural discount," a term describing how cultural products lose value or appeal when crossing borders due to unfamiliarity or cultural differences. As a result, Korean productions were once considered something to be watched for free or through an illegal route.

Even if it claimed global attention, its scope was limited to Asian viewers — referred to as Hallyu, or the Korean Wave — and couldn't reach those in the West.

However, in January 2019, a milestone was made in Korean content history with the release of its first-ever Netflix original, the zombie series “Kingdom.” The drama garnered global recognition as well as positive Western responses, being selected by The New York Times as one of the Best International Shows of 2019 and the Best TV shows of 2020. It was also referred to as a piece "putting South Korea at the forefront of the action-zombie genre" by the newspaper.

The success of the zombie period drama significantly elevated the profile of Korean content, drawing greater attention from global streaming platforms and viewers, and helping the genre expand beyond its traditional overseas markets like Japan and China.

“In the past, Hallyu was largely limited to Asia, but since Netflix entered the Korean market, there has been a significant shift in both its global reach and its impact on Korea’s national brand,” Prof. Lee Sung-min of Korea National Open University said during an insight session held in Jongno District, central Seoul, last month.

The number of original Korean dramas made by global streaming platforms — Netflix and Disney+ — has jumped from three in 2019 to 22 in 2023, according to a report by the Korea Communication Commission.

Netflix further underscored its confidence in Korean content by announcing in 2023 a plan to invest $2.5 billion (3.49 trillion won) from 2023 to 2027.

However, Netflix originals were not the only beneficiaries of the streaming behemoth’s investment in Korea.

Netflix also served as a crucial gateway for content produced by local broadcasters, offering them a global platform they might not have had access to otherwise.

For example, tvN’s romantic drama “Queen of Tears” became a major global hit, despite being first distributed through the local cable network. The series remained on Netflix’s global Top 10 non-English shows for 15 consecutive weeks, accumulating 43 million views — a measure of viewing time divided by the total runtime of the show.

As so, once-culturally discounted content has now become “investment-worthy in the global market,” according to Prof. Lee.

“Data showing that Korea is outperforming other countries in the non-English market are consistently coming out,” the professor said. “I believe this is one of the main reasons why Netflix is paying such close attention to K-content.”

Following Netflix, other global streaming platforms like Disney+ and Apple TV have subsequently acknowledged the potential of Korean content, producing local or Korean-related productions. Some have even achieved successful global recognition, such as Disney+’s “Moving” (2023) and Apple TV’s “Pachinko” (2022-24).

The cost of going global

Though global streaming platforms have often been credited with helping Korean content reach a broader global audience, they have also been criticized for contributing to rising production costs — a growing concern in the local content industry.

Netflix, in particular, has been cited as a key factor driving up production costs, making it increasingly difficult for small- and mid-sized production companies and local broadcasters to compete. This trend poses a potential threat to their sustainability and could lead to long-term decline.

Average production costs have surged, according to reports, reaching 1 billion won per episode in recent years, with some productions costing as much as 3 billion won — more than double the 500 million won average in 2020 during the early pandemic.

And for major global streaming platforms, production costs are significantly above this average. The production cost of the second and third seasons of Netflix's "Squid Game" was reported to be around 100 billion won, the two seasons of Netflix's "Gyeongseong Creature" (2023-24) cost around 70 billion won and the platform's latest series, "When Life Gives You Tangerines," cost around 60 billion won.

This increase in costs is also seen as a contributing factor to the shrinking domestic drama market, reflected in the decline of domestically produced dramas in recent years. According to the Korea Drama Production Association, the number of domestically produced dramas based on broadcast releases dropped noticeably from 141 in 2022 to 123 in 2023 and to around 100 last year, despite the growing interest in Korean content.

The extravagant productions — made possible only with sufficient funds — have raised expectations among Korean viewers. As local broadcasters rarely have the budget to support such high-cost projects, many have opted to produce fewer dramas altogether.

Even prominent directors, such as director Lee Byoung-heon of “Extreme Job” (2019), are seeking alternative options, like short-form content.

“With production costs going up and traditional broadcasters becoming more hesitant, it's definitely gotten harder to take on long-form projects than it used to be,” Lee said to the press. The director recently released his first short-format drama, titled “Unknown,” on YouTube last month.

The secretary general of Korea Drama Production Association, Bae Dae-sik, also pointed out in a local article that, to nurture talented writers and producers capable of creating high-quality content, it is essential to "lower the production cost barrier."

However, Netflix Korea seems to see things differently, with Vice President Kang Dong-han of Korean Content at Netflix saying the rising costs “should not necessarily be viewed as a bad thing.”

“Just seven or eight years ago, K-content was something people abroad watched for free,” Kang said during the session. “Now, it has become premium content that audiences are willing to pay for. To meet these rising expectations, investment has become essential and unavoidable.”

Prof. Lee also noted that Korea is currently undergoing an adjustment process in its content-making system in response to challenges related to the rising production costs.

“I believe the market is currently undergoing a process of adaptation,” he said. “Of course, this transition can be painful at times. Still, I think this phase will give rise to new and creative attempts.”

BY KIM JI-YE [kim.jiye@joongang.co.kr]