Apr 25 (Reuters) – Netflix Inc (NFLX.O) announced on Tuesday that it will invest $2.5 billion in South Korea over the next four years to produce Korean unscripted TV series, films and shows, doubling its investment in the market since 2016.

This was announced by the US streaming service after a meeting between South Korean President Yoon Suk Yeol and Netflix co-CEO Ted Sarandos. Yoon arrived in Washington on Monday for a six-day state visit.

President Yoon hailed the investment as a “great opportunity” for Netflix and the South Korean content industry as it seeks to increase its cultural exports and influence.

South Korean production and entertainment stocks rallied, including Showbox (086980.KQ) and Studio Dragon (253450.KQ) up 8.75% and 2.26%, respectively, compared to the country’s smaller Kosdaq index (.KQ11) Decrease of 2.21%.

Known as the “Korean Wave” or Hallyu, the South Korean entertainment industry has boomed worldwide in recent years. Its music market, led by K-pop groups like BTS and Blackpink, is leading.

In 2021, exports of content such as music, video games and films hit a record high of US$12.4 billion, surpassing the export volume of home appliances and rechargeable batteries, according to the government.

“We were able to make this decision because we have great confidence that the Korean creative industry will continue to tell great stories,” Sarandos said in a statement, citing the streaming platform’s global hits produced by South Korean creators, such as “Squid Game.” “The Glory” and “Physical:100”.

Squid Game, a 2021 release, remains the most-watched Netflix series of all time with 1.65 billion streaming hours in its first 28 days.

Pop culture critic Jung Duk-hyun said that South Korean content and Netflix have a mutually beneficial relationship.

“Right now it’s a win-win situation. Netflix maintains its position in the global market with low-cost Korean content.”

“At the same time, Korean content has gained increased global prominence through the Netflix platform in recent years,” he said.

Netflix offered a lighter than expected deal forecast last week when it attempted to crack down on unauthorized password sharing in Q2 to make improvements, delaying some financial benefits.

Reporting by Mrinmay Dey in Bengaluru; Edited by Maju Samuel

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