South Korea's KOSPI Index closed up 0.91% at 2,625.58

South Korea's KOSPI Index closed up 0.91% at 2,625.58

South Korea's KOSPI Index closed up 0.91% at 2,625.58 on May 21, 2025, reflecting a positive sentiment in the market. This financial news coincides with significant developments in the country's online video services sector.

According to a recent report by Omdia, Netflix maintains its leading position in South Korea's subscription-based online video market, accounting for 31% of the total subscriber base. However, major domestic platforms collectively represent a larger 40% share, led by Tving (16%), Coupang Play (13%), and Wavve (11%) [1].

The performance of local platforms reflects their strong cultural alignment and strategic presence within South Korea’s streaming ecosystem. With K-dramas continuing to play a significant role in the global content market, platforms such as Tving are expected to expand their content libraries to strengthen competitiveness both domestically and internationally. CJ ENM, Tving’s primary shareholder, has outlined plans for global expansion, targeting 15 million global subscribers by 2027. To support this ambition, CJ ENM has committed an additional KRW150 billion ($106 million) for content investment in 2025, on top of the KRW 1 trillion (approximately $706 million) budget announced last year. The company also plans to collaborate with studios in the US, Japan, and Southeast Asia [1].

Coupang Play, operated by South Korea’s e-commerce firm Coupang, is currently the third-largest streaming platform in the country. The service is available exclusively to subscribers of Coupang’s premium Wow membership program. While its original content library remains smaller than Tving, Coupang Play has expanded its offering through securing major sports broadcasting rights and through strategic content partnerships with Hollywood studios including Paramount and Warner Bros. Discovery. These agreements provide exclusive access to popular international titles from Paramount+, HBO, Max, and Warner Bros., differentiating Coupang Play from competitors that focus more heavily on domestic originals [1].

The ongoing merger discussions between Tving and Wavve could result in the formation of South Korea’s largest domestic streaming service, severely narrowing the gap with Netflix and further reshaping the competitive landscape. This potential merger signals a strategic shift in the distribution approach that could influence competitive dynamics across global streaming markets [1].

As the market continues to evolve, both global and local platforms are adapting their content and platform strategies to meet changing consumer expectations. While Netflix leads in terms of individual subscriber share, the collective momentum of domestic platforms, driven by strong local content, strategic investment, and platform innovation, positions them as key players in the future of South Korea’s streaming ecosystem and increasingly, the global market [1].

References
[1] https://www.morningstar.com/news/business-wire/20250519923488/omdia-reports-local-online-video-services-take-the-lead-over-netflix-in-south-korea