For more than a decade, Korea’s cultural exports — spanning film, music and digital media — have captivated audiences worldwide. But now, signs of fatigue are beginning to emerge across the industry.

The once-booming webtoon sector, which has served as a crucial pipeline for K-drama and film adaptations, is showing clear signs of decline. Album sales in the K-pop industry have dipped significantly, raising concerns about the genre’s enduring appeal. Even the country’s once-mighty film industry, battered by streaming dominance and sluggish domestic demand, continues to struggle to reclaim its pre-pandemic heights.


Industry experts warn that without systemic support, the creative engine behind K-culture may stall.

A number of cultural products have shaped Korea’s global media dominance, such as webtoons, the digital comics that have become fertile ground for screen adaptations. From the acclaimed “Misaeng” to the internationally successful “Itaewon Class,” webtoons have long been a driver of K-content.

But the Korea Manhwa Contents Agency said on March 17 that 18,792 webtoons were registered in 2024, down 6.7 percent from the previous year, marking the sector's first major contraction. More alarmingly, the number of new releases dropped by 14.6 percent, from 17,245 in 2023, to 14,723 the same year.

The pandemic-era surge in webtoon consumption, which once buoyed the industry, has subsided, leaving platforms struggling with weaker consumer spending.

“The overall webtoon market shrank last year, and with some platforms shutting down, the trend is likely to continue in 2024,” said an official from the Korea Manhwa Contents Agency.

The ripple effects could be profound. Webtoons have become a lucrative intellectual property pipeline, fueling not only television and film but also musical adaptations and global licensing deals.

“The webtoon industry’s downturn could weaken the entire K-content ecosystem,” said culture critic Kim Gyo-seok.

At the height of its global dominance, K-pop seemed unstoppable. Supergroups like BTS and Blackpink filled stadiums while album sales shattered records. But recent data suggest that the industry is no longer immune to market shifts. According to Hanteo Chart, total K-pop album sales reached 87.77 million units in 2023, a 15.3 percent drop from the previous year’s 103.59 million.

Southeast Asia, a key market for K-pop, has seen a notable shift in listening habits. Japan’s Nikkei newspaper reported that the genre is gaining traction in Indonesia, Thailand and other regional markets, while the share of Korean songs is declining.

In Indonesia, domestic songs accounted for 35 percent of total streaming in 2023, up from 23 percent in 2021. Meanwhile, Korean songs saw their market share shrink from 12 percent to 8 percent. Nikkei attributed the shift to the rise of local digital production systems, which have made domestic music more accessible and cost-effective to produce.

While Korea continues to produce critically acclaimed films, the domestic box office continues its prolonged slump.

According to the Korean Film Council, 123 million tickets were sold in Korea last year, a slight 1.6 percent decline from 2022. But the more striking comparison is to 2019, when a record 226 million tickets were sold — marking a 45.7 percent decline in just five years.

The pandemic fundamentally altered viewing habits, accelerating the dominance of streaming platforms like Netflix and reducing the frequency of theater visits. The prolonged downturn has led major theater chains like CGV to offer voluntary retirement packages to employees for the first time since 2021.

The challenges facing K-culture are not only creative, but also financial. The venture capital that once fueled the rapid expansion of the industry is now drying up.

According to the Ministry of SMEs and Startups, total investment in the video, performing arts and music sectors dropped 23.7 percent in 2023, falling to 493.7 billion won ($371 million) from 647.3 billion won the previous year.

“The rising cost of production and intensified competition from global players like Netflix have made investment in K-culture-related businesses less attractive,” said an industry analyst.

As K-culture stands at a crossroads, industry leaders are calling for institutional reforms to ease the financial burden on creators and production companies.

Noh Chang-hee, director of the Digital Industry Policy Research Institute, emphasized the widespread impact of the content industry on Korea, stating that “institutional improvements, such as introducing tax credits for performance content production, are necessary to reduce investment burdens.”

Kwak Gyu-tae, a professor at Soonchunhyang University’s Department of Global Cultural Industry, also suggested that Korea should consider rewarding companies that have promoted K-culture through content exports with various forms of support.

BY HA NAM-HYUN [kjdculture@joongang.co.kr]