At the K-Entertainment Industry Summit in Los Angeles, the tone was celebratory. Executives from CJ ENM, HYBE, Disney, and Universal Music Group pointed to a decade-long surge that has transformed Korean content into one of the most influential forces in global media.
Since PSY’s ‘Gangnam Style’ went viral in 2012, K-content has expanded into a multi-format ecosystem spanning film, television, animation, webtoons, and digital platforms—now firmly embedded within Hollywood’s development pipelines.
“Let’s get rid of the notion that it’s an outlier and just look at the brass tacks of what it is. It’s a great piece of storytelling with innovative animation,” said James Shin, president of HYBE America Studios, referencing Netflix’s breakout hit Kpop Demon Hunters.
“They had the aspirations of the biggest musicals. How do we achieve that while also adhering to this whole idea of authenticity? It’s those little details. It’s the beauty and specificity” that made Kpop Demon Hunters stand apart.
Global demand is only accelerating. Streaming giants are doubling down on Korean and pan-Asian originals as they compete for international subscribers, while K-pop continues to anchor a powerful, multi-generational fandom economy.
“I think people who don’t know what K-pop is, they think it’s a very young niche. But if you look at its reach globally, and [how] it transcended across the globe, you can see that the age range is a bigger gap,” said John Kim, VP of marketing and distribution for UMG/Interscope Records. “It reaches young teens through the mid-40s and 50s. I grew up on K-pop, my son grows up on K-pop, so it’s generational now.”
“Certainly, as a global streamer, if something tends to travel, that’s attractive to us, even if that’s not the goal for every [show],” added Jon Wax, executive VP of International Original Television for Disney Entertainment. “Japan and Korea are two areas of focus for us.”
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From Oscar-winning films like Parasite to global streaming phenomena such as Squid Game, Korean storytelling has become a benchmark for originality and cross-cultural appeal.
But while Korean content is thriving globally, the domestic film industry tells a very different story—one defined by declining audiences, stalled investment, and rising costs.
The numbers are stark. Theatre attendance in South Korea has collapsed from 226.68 million in 2019 to just 123.13 million, a loss of more than 100 million admissions. Box office revenue has fallen from $1.42 billion to $886 million over the same period, a drop of roughly 38%. Even more concerning, Korean film revenues alone plunged nearly 40% year-on-year last year, with audience numbers falling to 43.58 million.
At the same time, the government has significantly expanded funding for the content sector, committing over $5.4 billion to new initiatives. Yet much of that capital is not reaching production. Film fund utilization rates have plummeted from 99.1% in 2022 to just 10.1% in 2025, leaving nearly $90 million sitting idle.
This disconnect reflects a deeper structural shift. As OTT platforms dominate consumption—penetration has surged from around 30% in 2017 to 80%—audiences are abandoning theaters in favor of streaming-first content. The industry is increasingly reorganized around large-scale OTT productions, which offer more predictable returns and global reach.
Meanwhile, production economics are deteriorating. Actor fees now account for 43% of total production costs, with top stars commanding up to nearly $1 million per project. This star-driven system has inflated budgets without guaranteeing success, contributing to a sharp decline in profitability and fewer breakout hits. Notably, 2025 marked the first time since 2012—excluding pandemic years—that no Korean film surpassed 10 million admissions.
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The competitive landscape is also shifting. Foreign films are gaining market share in Korea, generating $465 million in revenue last year—up nearly 25%—while Korean films struggle to maintain dominance in their home market.
Taken together, these trends point to a breakdown of the industry’s traditional “virtuous cycle,” where strong box office performance fueled reinvestment into new productions. Today, that cycle is weakening, with declining demand leading to reduced investment, fewer films, and further audience erosion.
The irony is hard to ignore. Korean storytelling has never been more influential globally, yet one of its foundational pillars—its domestic film industry—is facing a potential long-term decline.
The question now is whether the industry can rebalance. Without structural reforms in financing, production models, and theatrical strategy, Korea risks becoming a global content powerhouse that no longer relies on its own film ecosystem to lead the way.
For now, Korean content is still winning the world. But at home, the spotlight is starting to dim.
