"Next Year's Stock Market Focuses on Webtoon Subscribers Surpassing Netflix"

Interview with Minsu A, Head of Operations at Samsung Active Asset Management

Global Subscribers Reach 300 Million: Naver and Kakao Webtoons Show Infinite Growth Potential

Minsu A, Head of Asset Management, Samsung Active Asset Management

[Asia Economy Reporter Junho Hwang] "It is important to note that the number of webtoon subscribers in South Korea exceeds that of Netflix subscribers."

Min Sua, Chief Investment Officer (CIO, Executive Director) of Samsung Active Asset Management (a 100% subsidiary of Samsung Asset Management), identified webtoon companies as the leading stocks in next year's stock market on the 19th. He stated, "Among Korean companies, many are number one in the global market, and webtoons are a prime example."

According to Min, the global subscriber count of Korea's leading webtoon companies, Naver (Webtoon) and Kakao (Webtoon), is close to 300 million (including subscribers of Wattpad, a US web novel platform acquired by Naver). In comparison, the global online video service provider Netflix had 214 million subscribers as of the end of the third quarter this year. The monthly transaction volume of the two webtoon companies is about 100 billion KRW.

Min explained that both webtoon companies are unlisted and are expanding their national bases, indicating limitless growth potential. He emphasized, "Samsung Asset Management's strength lies in discovering the most competitive companies in Korea at the earliest stage and investing in them. Recently, we have identified webtoons and the metaverse."

On the other hand, he expressed cautious views on the domestic automobile manufacturing industry. Min said, "As the impact of the COVID-19 spread in the ASEAN region gradually improves, the automotive sector is expected to benefit positively next year," but he also noted, "The global market is being reshaped by electric vehicles, which could be a burden for domestic companies." From a global perspective, automobile manufacturers can be divided into Tesla and non-Tesla groups. For domestic automakers to become winners in the non-Tesla group, they must possess special competitiveness within that segment. Otherwise, as electric vehicles replace internal combustion engine cars, they may lose their standing." He added, "From an investment perspective, secondary battery companies, whose demand is increasing amid competition among manufacturers, are expected to perform well next year."

Regarding next year's stock market, he said, "Currently, there are views concerned about liquidity tightening next year and views watching for economic recovery. I am hopeful for the latter, as the global stock market (excluding China) is not expected to be bad, and domestic companies' earnings are also anticipated to be good."

For investors, he advised, "Although active ETFs that are easy to buy and sell are attracting those who want to invest in specific themes, it is necessary to have some understanding of the market. For those who do not really understand the stock market but believe investment is necessary, it is beneficial to join public funds where fund managers carefully analyze companies and adjust weights while monitoring stock prices." He recommended the Small and Medium Focus Fund (assets under management 148.3 billion KRW, one-year return 32%) and the Samsung Dividend Long-term Fund (67.5 billion KRW, one-year return 33.7%).

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