"'K-Story' as a Weapon: Worth Competing with Netflix and Marvel"

Ryu Jeong-hye, Vice President of Kakao Page, Lectures at Korea Creative Content Agency Conference
Emphasizes Importance of Content Intellectual Property (IP) Business

Ryu Jeong-hye, Vice President of Kakao Page, is explaining the success story of the webtoon-based drama 'Itaewon Class' at the 2020 Licensing Con held online.
Photo by Korea Creative Content Agency

[Asia Economy Reporter Kim Heung-soon] "Original stories based on webtoons or web novels represent a market that never existed before. With the competitiveness of 'K-Story' as a weapon, South Korea can lead the global stage."

Ryu Jeong-hye, Vice President of Kakao Page, spoke about the importance of the content intellectual property (IP) industry as a speaker at the '2020 Licensing Con' event hosted by the Korea Creative Content Agency on the 18th.

She expressed confidence that after confirming the significant popularity of dramas based on Kakao Page's webtoons both domestically and overseas, as well as the ripple effect of various derived added values, it is worth focusing their capabilities on this area.

She emphasized, "Even if video content such as movies or dramas has competitiveness, for overseas expansion, it inevitably becomes dependent on global platforms like Netflix. However, in the IP industry based on webtoons or web novels, this kind of leadership can be fully overturned."

Producing Promising Webtoons and Web Novels into Movies and Dramas
Super IP Confirmed through 'Itaewon Class'

Kakao Page is implementing a 'Super IP' strategy that produces video content such as movies or dramas based on original stories and expands them into the global market. This is the so-called 'Super Webtoon Project.' Instead of relying on reproducing added value derived from a few hit movies or dramas, it focuses from the start on utilizing and expanding promising webtoon IPs.

The drama 'Itaewon Class,' which aired in January this year, achieved results through this project. This drama is based on the webtoon of the same name that gained attention on Daum Webtoon from 2017 to 2018. According to Kakao Page, the webtoon 'Itaewon Class,' which recorded 7 million subscribers and 250 million views, saw its interest grow significantly after being aired as a drama, with subscribers increasing to 15 million and views to 360 million. Cumulative sales also rose by more than 300% compared to before.

It recorded a domestic viewership rating of over 10% and ranked high in popularity overseas, including Japan and Southeast Asia, via Netflix. Mercedes-Benz even used webtoon characters as advertising models for their vehicles. Vice President Ryu highlighted, "The fact that the original characters, not actors, were used as models marks the starting point of business utilizing IP."

Webtoon Itaewon Class image cut (left) and drama Itaewon Class official poster

"Not Inferior to Marvel"... 65 IP Contracts in 3 Years
Strategy to Expand into the Global Market

To systematize the Super IP strategy, Kakao Page has been securing various IPs based not only on webtoons and web novels but also on scripts and scenarios by domestic writers. They are also focusing on creating global platforms and systems capable of distributing project outcomes like 'Itaewon Class' worldwide.

Vice President Ryu stated, "Marvel employs a Super IP strategy that generates over 3 trillion won in sales with a production cost of 400 billion won. If we can create multiple Super IPs with sales around 50 billion won each at production costs of 400 million to 1 billion won, we have sufficient competitiveness."

The proportion of video content produced based on webtoon originals has been rapidly growing recently. According to Kakao Page, the number of contracts to adapt original IPs from Kakao Page, Daum Webtoon, and Super Comics into video content from 2021 to 2023 totals 65. This equals the cumulative number of contracts signed over 14 years from 2006 to 2019.

Vice President Ryu emphasized, "When 'Aladdin' was made into a live-action movie, the public was amazed that an animation was turned into a movie. However, when 'Itaewon Class' was adapted into a drama, many asked, 'Was there an original webtoon?' This shows that webtoons have grown into a business beyond movies or dramas. Our goal is to imprint this fact and foster the perception that the IP industry is not a supplement but the core."

IP Business, A Challenge Toward Change

The Licensing Con, now in its second year, is a forum to discuss key issues in the content IP licensing industry. This year’s theme is 'IP Business, A Challenge Toward Change.' Due to the impact of COVID-19, 49 domestic and international speakers delivered 35 lectures via pre-recordings and other methods, which are being streamed online until the 20th.

Lee Hyun-joo, Head of Popular Culture Division at the Korea Creative Content Agency, said, "Since COVID-19, the content industry has gained more attention, and there is growing consensus on the importance of IP. We hope that the experts’ lectures will serve as an opportunity to enhance the competitiveness of the domestic content industry."

This content was produced with the assistance of AI translation services.