Korean webtoon industry has achieved a historic milestone, surpassing 2 trillion won (approximately $1.36 billion) in market size for the first time.
Despite this impressive growth, the industry faces significant challenges, particularly from illegal webtoon distribution, which accounts for nearly 20 percent of the legitimate market. The illegal webtoon market is almost worth 446.5 billion won.
Market Growth and Trends
According to the 2024 Webtoon Industry Survey, released by the Ministry of Culture, Sports and Tourism and the Korea Creative Content Agency (KOCCA), the webtoon market reecorded sales of 2.189 trillion won in 2023. This is a remarkable 19.7 percent year-over-year growth, and this level of growth has been maintained since 2018. That just showcases the resilience and increasing global appeal of Korean webtoons, just like other Korean cultural products.
Platform Growth and Global Expansion
There was a substantial growth in the webtoon platforms, achieving a 25 percent increase in revenue to reach 1.409 trillion won. This surge is because of the industry’s proactive global expansion. Japan is becoming a leading export destination, accounting for 40.3 percent of total exports. Other key markets include:
- North America: 19.7 percent (up 6.2% from the previous year)
- China: 15.6 percent
- Southeast Asia: 12.3 percent
- Europe: 8.2 percent
While there was an increase in American share, there was a slight reduction in Japan’s market share. The rising popularity of Korean webtoons in North America highlights the industry’s potential for further international growth.
Challenges: The Rise of Illegal Webtoon Distribution
A major concern for the industry is the widespread issue of illegal webtoon distribution. In 2023, the domestic illegal reproduction rate was reported at 20.4 percent, resulting in an estimated loss of 446.5 billion won. It does not include international piracy, meaning that the loss percentage may be higher.
Webtoon Artist Income Insights
The survey also provided insights into the financial realities of webtoon artists. The median annual income for artists who serialized their works throughout the year was 38 million won. The common earnings essentially range between 30 million to 50 million won, accounting for almost 50% of artists. Additionally, overseas earnings account for an average of 6.8 percent of total income. It demonstrates the growing impact of international markets on artists’ revenue streams.
The Role of AI in Webtoon Production
Like any other industry, Artificial intelligence (AI) is also making its way into the Korean webtoon industry. According to the survey, 63.8 percent of webtoon companies expressed an interest in adopting AI tools, reflecting a significant increase compared to the previous year. And like other artists, webtoon creators. are also wary of AI taking over their jobs and hindering creativity. Only 36.1% artists are willing to use AI in their creative processes. This small number shows that the debate for role technology and AI in artistic expression is still ongoing.
South Korea’s webtoon industry continues to see a steady influx of learners. As for the new artists in the industry, the hardest step is making their debut on a major webtoon platforms. There are certain third party platforms who search for talents and then connect them with readers.
Future Outlook and Industry Prospects
Korean webtoon industry continues to grow, fueled by its strong domestic market and expanding global presence. However, addressing challenges such as piracy and the ethical adoption of AI will be critical to sustaining momentum. Strategic efforts to combat illegal distribution and enhance support for artists will keep the industry as a key player in the global digital content landscape.
Key Takeaways
- The South Korean webtoon market reached 2.189 trillion won in 2023, marking 19.7% growth from the previous year.
- Japan leads webtoon exports, followed by North America, China, Southeast Asia, and Europe.
- Illegal webtoon distribution accounted for 20.4% of the legitimate market, with losses exceeding 446.5 billion won.
- The median income for webtoon artists was 38 million won, with international earnings contributing 6.8% to their income.
- AI adoption is growing among webtoon businesses (63.8%), but artists remain hesitant (36.1%).
Conclusion
The Korean webtoon industry’s impressive growth trajectory demonstrates its increasing influence in the global digital entertainment space. However, tackling piracy and embracing technological advancements responsibly will be key to securing long-term success and sustainability.
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