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The webtoon industry has recently emerged as the next generation content of the Korean Wave. Webtoon is a compound word coined by combining the words web and cartoon, meaning a comic that is digitally produced and distributed and consumed on online platforms. Webtoons are optimized for smartphones as they are produced in the form of vertical scrolling, and the market is expanding for webtoons as they can be easily enjoyed without the constraints of time and space.

According to the Korea Creative Content Agency, the Korean webtoon industry generated KRW 1.8 trillion in sales in 2022, up 16.8% from the previous year. By sector, platforms accounted for 61.7% and CP companies1 for 38.3%, with most of the industry's sales coming from platforms. Korean webtoons are also popular overseas: they were exported mostly to Japan (45%), followed by Greater China (14%), North America (13.5%), and Southeast Asia (12.7%). Korea is the country where webtoons began, with Naver Webtoon and Kakao Entertainment providing services overseas as well. In addition to exporting original works, it is expanding globally by acquiring overseas webtoon and web novel platforms. Recently, Webtoon Entertainment, the parent company of Naver Webtoon, listed on the Nasdaq stock exchange in New York, and Kakao Piccoma, which entered the Japanese market, is leading the Japanese digital comics market.

In the early days of the Korean webtoon industry, the majority of webtoons were offered for free after a certain period of time, such as 'free if you wait'. However, with the increasing demand for webtoons and the emergence of specialized webtoon platforms, paid models such as paid services for finished works, one-hour binge-reading, and preview services have emerged to generate revenue.

In addition, webtoon platforms are building up their intellectual properties by registering and expanding them across different genres such as movies, dramas, web novels, and games through the trans-media strategy2. In particular, webtoon platforms are producing drama series and movies based on webtoons that have proven their marketability by gathering popularity in competitive Korea and foreign OTT platforms. Best cases include Netflix original series Sweet Home, Hellbound, and All of Us are Dead were produced with NAVER Webtoon IP and made global successes. Solo Leveling which gained popularity on Kakao's page, was produced as a web novel and has since expanded its IP to include webtoons, animations, and games.

In March 2023, the Korean government amended the Promotion of Cartoons Act to include a legal definition of webtoons and include webtoons in the cartoon industry. By legally distinguishing between cartoons and webtoons and clearing up confusion, it became possible to provide supportive policies tailored to the characteristics of webtoons. In January 2024, the Ministry of Culture, Sports, and Tourism released the Direction for the Development of the Cartoon and Webtoon Industries to lay out strategies and tasks to foster cartoon and webtoon industries as a strategic industry to drive the Korean Wave, expand exports, and encourage fair trade.

In June 2024, the Korean government announced policies to foster the webtoon industry in the Third Master Plan for the Promotion of the Content Industry3. The plan proposed various localization plans to ensure the successful global entry of the webtoon industry such as tailored translation, use of local stories, and content production support. The government also announced plans to host a global webtoon festival to provide business opportunities for writers and companies, and to support the global expansion of small and medium-sized webtoon companies.

The webtoon industry is considered to be the new Korean Wave content that will succeed the popularity of Korean music, drama series, and movies. It is currently expanding not only in the Korean market but also in global markets such as Japan, China, the United States, and Southeast Asia. It is securing overseas users not only by exporting the original webtoons but also by entering their platforms. In addition, it is expanding its business model by discovering Super IP (intellectual property).

According to market research firm Fortune Business Insights, the global webtoon market is expected to grow at a CAGR of 6.9% from 2024 to 2032, reaching USD 13 billion by 2032. As big tech leaders enter the global webtoon market, they are expected compete with Korean webtoon platforms4. In 2023, Apple added vertical reading comics content through its Apple Books platform and Amazon launched Fliptoon service in Japan, and Japan's Rakuten also launched its own webtoon app, R-Toon.

Moving forward, building intellectual properties will prove crucial in strengthening the country’s position as a webtoon industry leader and expanding the market for Korean webtoon companies. Competition among platforms to secure IP will intensify as more webtoons are adapted as movies, drama series, and games and make remarkable successes.