Netflix Korea revenue tops 1 trillion won, with 81% sent to U.S. headquarters as local rivals rack up losses
The regional arm of the subscription streaming service surpassed 1 trillion won ($747 million) in annual revenue, but 81 percent was paid to its U.S. headquarters as local streaming rivals continued to post losses.
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Netflix’s revenue in Korea topped 1 trillion won ($747 million) for the first time last year, but 81 percent of it went to the company’s U.S. headquarters, according to data released by a government official on Wednesday.
The Korean unit logged an operating profit of just 20.3 billion won. The figures come as local streaming services continue to post losses, fueling debate over whether the profits from hit Korean content are sufficiently flowing back to production companies and the domestic industry.
Netflix’s Korean revenue reached 1.05 trillion won last year, according to an analysis of Netflix Services Korea’s audit report by Democratic Party Rep. Han Jun-ho, a member of the National Assembly’s Science, ICT, Broadcasting and Communications Committee. Revenue has grown about 1.7 times from 631.7 billion won in 2021, crossing the 1 trillion won mark for the first time.
Of last year’s revenue, however, 853.9 billion won, or 81 percent, was paid to Netflix’s U.S. headquarters for items including membership subscription purchases. As a result, the Korean unit’s operating profit stood at 20.3 billion won last year, with an operating margin of 1.9 percent.
Korean streaming services, in contrast to Netflix, remained in the red. Tving posted an operating loss of 69.8 billion won last year, and Wavve recorded an operating loss of 12.2 billion won.
Netflix holds a clear lead in market share. Its paid subscription rate stood at 46.7 percent, more than three times that of second-place Tving at 13 percent, according to the Korea Media and Communications Commission’s 2025 survey.
Rep. Han raised concerns about how revenue from Korean content is divided. For Netflix original content, the platform often secures the intellectual property rights, while production companies typically receive a margin of 3 to 10 percent of production costs, he said. Under this structure, production companies have difficulty earning additional revenue in proportion to a work’s success, even when it becomes a global hit.
“It is K-content that made Netflix No. 1 in Korea,” Han said. “Responsibility befitting its influence must follow, including additional compensation based on a work’s success.”
BY JEONG JAE-HONG [[email protected]]
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
