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The Secret to Hatchuping's Success: Breaking Free from Stereotypes

Movie still from "Love's Hatchuping." Provided by SAMG Entertainment.
Movie still from "Love's Hatchuping." Provided by SAMG Entertainment.
Jung Hyun Bae, Head of Global Business at SAMG Entertainment, gives lecture at Korea Creative Content Agency

There are seven major character brands that generate the most revenue worldwide: Pokemon, Hello Kitty, Winnie the Pooh, Mickey Mouse, Star Wars, Anpanman, and Disney Princesses. They all share one common trait: their merchandising revenue far surpasses the income from their original comics, games, movies, or animations. For example, Pokemon's merchandising revenue is 3.5 times higher than its game revenue, and Star Wars' merchandising revenue is more than four times its box office revenue. Through repeated exposure, these characters build and expand their fandoms, which in turn boosts the promotion and sales of various products.


The average age of these character brands is fifty-five years. In contrast, Korean character brands are much younger. They often struggle to function independently outside of their stories or animations. However, they have an advantage that older characters lack: they are free from implicit rules, formulas, and traditions. This allows them to try new and diverse approaches without significant constraints or burdens.

Bae Jeonghyun, Head of Global Business at SAMG Entertainment. Provided by Korea Creative Content Agency

Bae Jeonghyun, Head of Global Business at SAMG Entertainment. Provided by Korea Creative Content Agency

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SAMG Entertainment is a leading example of a company that has achieved success in this way. Unlike typical American or Japanese companies, SAMG has built its growth engine through animation production while simultaneously pursuing a merchandising business. Jung Hyun Bae, Head of Global Business at SAMG Entertainment, participated as a speaker at the "2025 Content Industry Forum" hosted by the Korea Creative Content Agency at the CKL Stage in Seoul on June 19, and stated, "We operate our business with the mindset that 'merchandising is also content.'"

"Merchandising is also content" ... Preparing from the planning stage leads to increased sales

He explained, "We boldly broke away from the structure of planning merchandising based on the popularity gained from animation. Now, we consider merchandising from the very beginning, at the animation planning stage." He added, "For example, the head of the toy team reads the script before the video is produced and provides input from the perspective of product development." He continued, "As we apply this new planning and development principle, the time required to reach the break-even point is getting shorter and shorter. For 'Mini Force,' it was reduced from five years to four months, and for 'Catch! Teenieping,' it went from two years to four months."

Animation 'Mini Force' still cut. Provided by SAMG Entertainment

Animation 'Mini Force' still cut. Provided by SAMG Entertainment

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The expansion of intellectual property (IP) to broaden the target audience also played a significant role in the surge in sales. The domestic kids' market is smaller than that of the United States or Japan. Not only is the population of infants and children smaller, but there is also a strong tendency to view animation solely as content for children. To break away from this stereotype, SAMG Entertainment produced the family-targeted movie "Love's Hatchuping." This 3D animation was released in August of last year and attracted 1,240,130 viewers (with revenue of 11,132,090,000 KRW) at the box office. This is the second-highest record ever for a Korean animated film.

"Expanding the target to families" ... IP expansion also contributes to a surge in sales

Jung Hyun Bae stated, "We are planning a trilogy and intend to produce two more films in the series," adding, "We are also actively pursuing a musical business across the country for the same goal." He continued, "Our goal is to raise the quality to a level that even adults can enjoy," and predicted, "If the popularity of the animation continues into movies, games, and comics, a new value chain will be formed in the animation and character industry."

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