South Korea Seeks Greater Share of Global Streaming Profits Amid Soft Power Boom

South Korea is increasingly asserting its economic interests in the global cultural content market, particularly concerning its highly successful collaborations with streaming giants like Netflix. A recent analysis by Bloomberg Opinion columnist Cathy Thorbecke highlights the need for Seoul to secure more substantial financial returns from its burgeoning soft power, exemplified by popular cultural exports. As stated in a tweet from Bloomberg Opinion, the article titled "KPop Demon Hunters: South Korea's Soft Power Must Profit Along With Netflix" argues that while platforms like Netflix benefit immensely from this content, the economic gains for the content's originators should be more equitable.

The phenomenon of Hallyu, or the Korean Wave, encompassing K-pop, K-dramas, and films, has significantly boosted South Korea's international influence and economic standing. This cultural prowess has generated billions for the South Korean economy through increased exports of cultural goods, tourism, and related industries. The South Korean government actively promotes cultural content as a key growth engine, recognizing its substantial global impact.

Netflix has been a major player in amplifying the reach of Korean culture, having invested over $2.5 billion in Korean content since 2016. This investment has led to a wide range of popular series and films, many of which have consistently ranked among Netflix's most-watched global titles. The streaming giant emphasizes long-term partnerships with Korean creators and studios, fostering a continuous flow of innovative content.

Despite the success, a growing debate in South Korea centers on the profit-sharing models. Korean production companies often operate on a work-for-hire basis with global streaming platforms, meaning they receive a production fee but frequently relinquish intellectual property rights and residual profits. This arrangement raises concerns about how to secure more equitable profit distribution and IP ownership for local creators and the nation itself.

Industry experts and policymakers in South Korea are advocating for new frameworks that allow local creators and studios to retain more ownership and participate more directly in the global profits. This strategic shift aims to maximize the economic benefits derived from the country's cultural prowess. The ongoing dialogue reflects a broader trend of content-producing nations seeking to leverage their cultural assets for greater economic advantage in the digital age.