Adapted by:
John Tones
WriterI've been writing about culture for twenty-something years and, at Xataka, I cover everything related to movies, video games, TV shows, comics, and pop culture.
Alba Mora
WriterAn established tech journalist, I entered the world of consumer tech by chance in 2018. In my writing and translating career, I've also covered a diverse range of topics, including entertainment, travel, science, and the economy.
South Korean dramas have transcended the borders of Asian countries, and millions of people watch them worldwide. Netflix has played a big role in this trend, helping to establish South Korea as a hub for diverse and varied productions beyond its biggest hit, Squid Game. However, this could be threatening the solid foundations of the genre.
K-drama craze. In recent years, South Korean dramas have experienced unprecedented growth. Netflix has been a key player in this phenomenon, positioning South Korean content as the second most viewed globally, just behind American productions. Since 2023, K-dramas have accounted for between 8% and 9% of total viewing hours on Netflix, featuring popular titles such as Squid Game, Queen of Tears, Crash Landing on You, and Love Next Door.
Spending through the roof. Netflix’s investment in South Korean content is substantial. More than half of the popular South Korean titles on the platform are Netflix originals. Additionally, about a third are exclusive, and many are produced in collaboration with local studios.
However, production costs have skyrocketed. The average price per episode is currently around $700,000, with some shows exceeding $2 million per episode. This is more than double the costs in 2020 and significantly higher than the approximately $200,000 per episode before Netflix’s arrival. Successful series such as When Life Gives You Tangerines have budgets exceeding $40 million per season.
Decline in production. Netflix, a powerful platform with significant financial resources, has increased production costs to create luxurious and engaging content for international audiences. The consequences are significant. First, production has decreased, particularly from medium-sized companies and traditional South Korean channels. Productions fell from 141 in 2022 to 123 in 2023, and to just 100 in 2024. Additionally, there’s pressure to create more expensive series, which has led to an increase in blockbuster productions but a decrease in average ones.
Superstars. Creators of South Korean series recognize that the cast often drives a series’ success. As a result, a large portion of the budget is allocated to lead actors, who can earn around $500,000 per episode. To address the rising series budgets that could jeopardize the industry, Netflix has decided to limit actors’ salaries to just under $300,000 per episode.
No risk. The South Korean fiction industry is at a pivotal moment, with ongoing debates about profitability versus quality. The increase in budgets has raised expectations for shows, but it’s also heightened financial risks. Unlike before Netflix’s arrival, series now need to be global hits to recover their investments.
This situation poses an additional challenge. As financial stakes rise, producers become less willing to take risks, often leaning toward conservative approaches and established formulas for success. As such, this could cause South Korean series to lose one of their defining strengths in appealing to global audiences: their ability to surprise.
Has Netflix ruined the South Korean fiction industry? It has undoubtedly contributed to a trend of inflated budgets and a demand for grand spectacle. This is currently impacting medium-sized productions, the backbone that provides stability and volume to the industry.
South Korea has a clear reference point to avoid repeating past mistakes: Hollywood. The American film industry is experiencing a creative crisis and facing bloated productions that call its future into question. For now, the South Korean industry still has the opportunity to adapt–if Netflix allows it.
Image | Netflix
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