This article is by Kim Ji-ye and read by an artificial voice.

The record-breaking popularity of Netflix's "KPop Demon Hunters" has confirmed one thing: Korean content now commands a global audience.
Released on June 20, the animated film continues to make history on the platform nearly four months after its debut. It has now become the most watched content on Netflix, outperforming the previous record holder, the first season of "Squid Game" (2021-) and marking the first Netflix production to exceed 300 million views.
What was initially expected to appeal only to a limited audience, such as young women or K-pop fans, ended up captivating a far broader public, crossing borders and generations.
Its strong, widespread popularity underscores both the global potential of Korean culture and its scalability.
Recognizing that potential, Netflix bet heavily, pledging $2.5 billion in Korean productions by 2027. Rivals like Apple TV+ and Prime Video are also joining the trend, racing to launch their own Korea-themed originals such as "KPOPPED" and "Butterfly."
Yet what seems like a triumph for Korean culture raises another question: Why are global streamers driving the biggest Korean projects and what weaknesses within Korea's own content industry are keeping it from taking the lead?

Lack of investment and the vicious cycle
What appears to be a heyday for Korean content stands in stark contrast to the domestic industry, which has been mired in a prolonged slump due to declining investment, weak performance and low returns.
Film production has sharply declined, with reports saying an estimated 25 films are to be produced this year, less than half of the 58 titles made just five years ago. The drop is particularly devastating considering that from 2000 - often considered the start of the modern heyday of Korean cinema - until the Covid-19 pandemic, Korea's annual film production ranged between 60 and 100 titles.
Television, while faring slightly better than film, faces its own difficulties, especially among traditional broadcast networks.
Between 2019 and 2023, domestic broadcasters' drama productions fell from 109 to 77, while dramas produced by global streaming platforms jumped more than sevenfold, from 3 to 22, according to the Korea Communications Commission's 2024 report.
At the heart of the problem lies the fact that money is not circulating effectively within the domestic ecosystem, leading to fewer productions, especially in the film realm. The limited investment, combined with a constrained distribution system, has created a vicious cycle.

Lower returns have led investors to feel reluctant and scale back funding for new projects. According to a report from the Korean Film Council (Kofic), Korea's commercial films recorded average returns of -12.55 percent in 2022 and -30.98 percent in 2023, discouraging investors from funding new projects.
"Due to the recent slump in box-office performance, the five major film investment and distribution companies - CJ ENM, Lotte Entertainment, Plus M Entertainment, NEW and Showbox - have continued to either suspend or refrain from making new investments," Kofic noted.
This environment has pushed even high-profile creators to seek funding overseas for both films and dramas. A case that many worried had happened recently, as director Lee Chang-dong, known for films like "Burning" (2018), "Poetry" (2010), "Secret Sunshine" (2007) and "Peppermint Candy" (2000), gave up on a theatrical release of his new film "Possible Love" and instead partnered with an overseas giant, Netflix.
This came as a shock to many in the Korean film industry, as even those once thought to have little trouble securing funding - legacy filmmakers like Lee - have found themselves turned away by the traditional film system, highlighting how even its most respected auteurs are no longer immune to the industry's decline.
The director reportedly returned his government funding for his new film from the Ministry of Culture, Sp...

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