Why the K-drama industry is nearing collapse despite its global success

Korean dramas have conquered the world, attracted millions of international fans, and turned South Korean actors into global superstars. Yet behind the success of shows on Netflix and other streaming platforms, the industry producing these hits is facing a financial crisis.

Twelve South Korean entertainment and television organizations have sounded the alarm, warning that the country’s domestic drama production system is at risk of collapse.

The groups, including the Korea Drama Production Association and Korea Broadcasting Writers Association, are seeking 1 trillion won, approximately US$746 million, in government support over five years.

Their warning exposes a troubling reality: K-dramas may be more popular than ever, but producing them is becoming increasingly difficult to sustain.

Fewer dramas, bigger expenses

South Korea produced 141 dramas in 2022, compared with approximately 115 in 2025. Traditional broadcasters have suffered an even steeper decline.

KBS, MBC, and SBS collectively produced 91 dramas in 2012 but only 32 in 2023.

The problem is not simply declining audience interest. Production budgets have skyrocketed while advertising revenues have weakened as viewers migrate to streaming services.

For some broadcasters, producing another drama now means risking another financial loss.

The price of superstardom

One major culprit is the soaring cost of celebrity talent.

Competition from international streaming platforms has pushed leading actors’ salaries into hundreds of millions of won per episode, with exceptional deals reportedly reaching 1 billion won.

Industry reports indicate that actors’ fees can consume more than 32 percent of production budgets.

This leaves less money for writers, production crews, technical workers, and other essential creative departments.

Global success, local losses

Another problem is ownership.

International streaming platforms can finance expensive Korean productions in exchange for extensive intellectual property rights.

While these arrangements provide immediate funding, some Korean producers surrender opportunities to earn from future licensing, distribution, and merchandising.

Consequently, a drama can become an international sensation without generating comparable long-term financial benefits for the company that created it.

The next generation is at risk

The crisis also threatens the future of Korean storytelling.

As investors favor expensive productions featuring established stars, smaller dramas and experimental projects struggle to secure financing.

New writers have fewer opportunities. Emerging actors lose potential breakthrough roles. Production workers face increasingly unstable employment.

The industry risks losing the very creative talent responsible for building its international reputation.

Can government funding save K-dramas?

The industry is asking for a five-year investment program worth 1 trillion won to revive production, particularly smaller and mid-budget dramas.

According to South Korean newspaper Chosun Ilbo, industry representatives estimate that an annual investment of 200 billion won, shared with broadcasters and streaming platforms, could help produce approximately 40 additional dramas each year.

But the crisis is not necessarily proof that global demand for K-dramas is collapsing. Some industry observers argue that the deeper problem is the decline of traditional broadcasting and the difficulty of adapting its business model to streaming.

The distinction matters. Korean dramas remain internationally influential, but the domestic production system that nurtured their success is becoming increasingly fragile.

The irony is difficult to ignore: South Korea has successfully exported its stories to the world, yet the people and companies creating those stories are now asking their government to help them survive.

Without meaningful reforms, the next casualty of the K-drama boom may be the industry that made it possible.