Netflix has announced that it will invest $2.5bn in South Korea over the next four years, as it seeks to build on the success of popular South Korean productions like Squid Game. The announcement was made by the company's co-CEO Ted Sarandos after a meeting with South Korean President Yoon Suk-yeol during his state visit to the US.
Mr Sarandos said the investment will be used to make movies and TV shows in Asia's fourth-largest economy, adding that the decision was based on confidence in the Korean creative industry's ability to continue to tell great stories.
South Korean-made Squid Game became Netflix's most popular series of all time in 2021, streaming to 111 million users in its first 28 days after launch. The show, which tells the story of debt-ridden people competing for a huge cash prize in a series of South Korean children's games with a deadly twist, was a runaway success and catapulted the Korean entertainment industry to new heights.
Earlier this year, South Korean reality show Physical 100 became the platform's most-watched non-English language show globally, further cementing the country's position as a major player in the entertainment industry.
The investment comes as Netflix faces increasing competition from rivals like Amazon, HBO, and Disney. The company has been cutting prices in numerous countries in an effort to attract more subscribers, and last week announced that it would be cracking down on password sharing in the coming months.
Despite the challenges, Netflix has remained one of the dominant players in the streaming space, with more than 190 million subscribers worldwide. However, growth has slowed in recent years as households grapple with rising costs and the company reaches a saturation point in some of its biggest markets.
The investment in South Korea represents a significant expansion for Netflix and a further commitment to producing high-quality content that resonates with audiences around the world. As the company looks to maintain its position in an increasingly crowded marketplace, it will be interesting to see what other investments it makes in the coming years to stay ahead of the competition.