Mar 17 • 06:28 UTC 🇰🇷 Korea Hankyoreh (KR)

Naver Webtoon: "Growth Over Profitability"... Investing 70 Billion Won in Creative Ecosystem This Year

Naver Webtoon is prioritizing long-term growth over immediate profitability, planning to invest over 70 billion Won in expanding the creative ecosystem.

Naver Webtoon is focusing on long-term growth rather than immediate profitability, as stated by Kim Yong-soo, President of Webtoon Entertainment, during a press conference in Gangnam, Seoul. The company plans to invest more than 70 billion Won this year to foster the creative ecosystem and enhance the support for creators. Kim emphasized that acknowledging creativity and expanding content are essential for webtoons to gain mainstream recognition in the U.S. market, marking a pivotal shift in the company's operational strategy towards sustainable growth.

Since 2021, Webtoon Entertainment has distributed a total of 4.15 trillion Won to creators, highlighting the success of their 'flywheel' strategy where creators, content, and users work in a prosperous cycle. Kim reiterated that the success of the creators correlates directly with the success of webtoons; thus, a continuous increase in revenue distribution to creators is crucial for achieving their mission of mutual growth. The upcoming focus areas include enhancing user-generated content (UGC), developing video formats, and building up valuable intellectual property.

The company aims to broaden the creator base through structural enhancements to its CANVAS platform, which allows amateur authors to showcase their work to a global audience. Furthermore, Naver Webtoon is set to expand video formats like short-form animation currently offered in South Korea and North America. Concerning the use of artificial intelligence, the company maintains a cautious approach, indicating that AI tools will be used primarily for data analysis and content recommendations, while caution remains around its role in storytelling, which they believe should fundamentally come from the creators themselves.

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