South Korea paves the way for global content investment

A growing entertainment powerhouse

South Korea is rapidly becoming a global force in the entertainment industry, known for exporting everything from K-pop sensations to critically acclaimed movies, popular TV shows, creative social media content, and innovative webtoons. However, to maintain and amplify this growth, South Korea must further develop its content marketplace to attract more international investments and forge significant partnerships with media and entertainment giants, particularly from the U.S.

The international collaboration initiative

During the U-Knock: International Content Investment Forum 2024, held on November 7 in Las Vegas, significant discussions were held on the future of South Korea’s entertainment sector. This event, sponsored by South Korea’s Ministry of Culture, Sports and Tourism and the Korea Creative Content Agency, brought together a diverse group of producers, distributors, investors, and technology firms. The focus was on navigating the complex global content landscape and ensuring South Korea’s continued dynamic growth.

Demystifying South Korea’s content market

Sung Chul Paul Patrick LaValley, managing director of a notable investment firm, highlighted the need for South Korea to clarify the business framework for Western executives. He advocated for a strategic marketing approach to showcase the country’s potential returns on investment (ROI).

“We need a Chief Marketing Officer on behalf of South Korea to explain why it offers good ROI on time and investment,” LaValley emphasized.

Referencing the example of Hyundai’s success in the U.S. as a model of dedication and long-term investment, LaValley noted that the continued presence of South Korea’s best talent and companies in international markets would reinforce the nation’s commitment to being a permanent player.

Leveraging youthful energy and expertise

One of South Korea’s notable advantages in the entertainment sector is its youthful energy. Most of its entertainment infrastructure is spearheaded by companies that have been in operation for only a few decades. This relatively young ecosystem stands in stark contrast to century-old legacy giants like Disney and Warner Bros. Such youth can be an asset in innovation and flexibility.

K-content companies should harness this youthful vigor to outmaneuver older competitors. The vibrant and fresh outlook of these companies can drive more inventive and engaging content, catering to modern audiences worldwide effectively.

Trends favoring K-content

Vania Schlogel, founder and managing partner of a leading capital firm, pointed out that South Korean dramas and telenovelas have garnered global popularity, creating highly engaged and loyal fan bases.

“It’s a win-win for anyone buying Korean content. It’s more cost-effective to produce than Los Angeles content and drives significant engagement,” Schlogel explained.

Advertising is the next growth wave for streaming platforms, heavily reliant on user engagement. Shows like Squid Game and Hellbound showcase this potential by attracting viewers and boosting advertising revenues.

Deeper content production and rights negotiation

South Korean companies are diving deeper into content production as the streaming industry evolves. This shift includes negotiating content rights and engaging in ancillary activities that allow producers to turn a profit.

“Sustainability in the independent content market requires producers to retain some level of ancillary rights,” Schlogel noted, highlighting the importance of financial participation for producers in the success conferred upon technology platforms by their content.

Preparing for global business challenges

Simon Pulman, a law firm partner specializing in media and entertainment, stressed the importance of being well-prepared for global business challenges. Content creators need to be wary of restrictive contracts that may tie their hands for years.

“Hollywood’s job is to take as many rights as possible,” Pulman warned potential content creators against the overly broad and restrictive default offers they might encounter from large studios and streamers.

Pulman advised that creators are better positioned when they base their projects on established properties rather than speculative scripts. This approach can significantly aid in retaining crucial content rights.

Innovative future of South Korean entertainment

The U-Knock Forum also featured various innovative discussions about the future of South Korean entertainment.

Sunggoo Lee, CEO of an emerging tech company, unveiled the “Plave” franchise – virtual K-pop idols trained by humans but existing solely in virtual reality. This concept allows fans to interact directly with the characters, opening new engagement dimensions, such as virtual dance-off contests.

WonWoo Park, the creative mind behind The Masked Singer, revealed his vision for future TV shows, including VR-based singing competitions and roller coaster karaoke challenges. His remarks underscored the continuous search for innovative content ideas inspired by various sources.

Maria Park, VP at a premier video game developer, highlighted South Korea’s innovative gaming infrastructure. The storytelling in South Korean games merges Eastern and Western sensibilities, providing a unique yet familiar experience. Gaming, she observed, offers high risk and high return, coupled with a sense of fulfillment and achievement for users.

Jay Ahn, VP at a popular retail and entertainment company, discussed the success of the Line Friends character collection in retail. The company’s strategy includes producing animated series and games and expanding retail stores globally.

South Korea’s upward trajectory in the global market

Despite the numerous challenges and the need for strategic adjustments, the participants at the U-Knock Forum remained confident about South Korea’s potential to expand its influence in the global entertainment market. The synergy between youthful energy and innovative approaches, coupled with effective international collaboration, promises a bright future for South Korean content in the global arena.

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