Netflix sends 81% of Korea revenue to US parent, report shows
Summary
Netflix Services Korea generated 1.0542 trillion won in revenue in Korea in 2025 and paid 853.9 billion won, or 81 percent, to Netflix Inc. in the United States. The Korean operation recorded an operating profit of 20.3 billion won, a 1.9 percent margin. Rep. Han Jun-ho said hit Korean-content producers should receive additional compensation tied to commercial success.
Key Facts
- Netflix Services Korea’s domestic revenue increased from 631.7 billion won in 2021 to 1.0542 trillion won in 2025.
- Tving reported an operating loss of 69.8 billion won in 2025, while Wavve reported a loss of 12.2 billion won.
- Netflix had a 46.7 percent paid-streaming usage rate in a 2025 Korea Media and Communications Commission survey, compared with 13 percent for Tving.
- Han Jun-ho said Korean production companies often receive margins of 3 percent to 10 percent on projects financed by Netflix.
- Netflix retains intellectual property rights to many original productions, including Squid Game, which was described as its most-watched television series across its first three seasons.
Netflix logo / Korea Times file
Netflix generated more than 1 trillion won ($730 million) in revenue in Korea last year, but sent 81 percent of that sum to its U.S. parent company, leaving its Korean operation with an operating profit of just 20.3 billion won, according to an analysis of its financial statements.
Rep. Han Jun-ho of the Democratic Party of Korea, a member of the National Assembly’s Science, ICT, Broadcasting and Communications Committee, analyzed the audit report of Netflix Services Korea and found that the company’s domestic revenue rose to 1.0542 trillion won in 2025, up from 631.7 billion won in 2021.
The figures highlight a widening contrast between Netflix’s growth and the financial struggles of domestic streaming platforms, with Tving reporting an operating loss of 69.8 billion won last year and Wavve losing 12.2 billion won.
Netflix also dominated paid streaming subscriptions, with a usage rate of 46.7 percent, compared with 13 percent for Tving, according to the Korea Media and Communications Commission’s 2025 survey on broadcast media use.
Of Netflix Korea’s 1.05 trillion won in revenue, 853.9 billion won was paid to its U.S. parent, Netflix Inc., under the category of subscription membership purchases, accounting for 81 percent of total revenue.
The Korean subsidiary recorded an operating profit margin of just 1.9 percent, or 20.3 billion won.
Han said the arrangement raised questions about how revenue generated by Korean content was distributed, particularly as local production companies often receive margins of just 3 percent to 10 percent on projects financed by Netflix.
Netflix retains intellectual property rights to many of its original productions, including “Squid Game,” which has ranked as the platform’s most-watched television series based on combined viewership across its first three seasons.
“Netflix has become a service paid for by nearly half the population, yet it sends most of its Korean revenue to its headquarters,” Han said.
He called for additional compensation tied to a production’s commercial success, arguing that the companies creating hit Korean content should share more directly in its returns.
This article was published with the assistance of generative AI and edited by The Korea Times.
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