SEOUL, October 14 (AJP) - Netflix's Korean unit posted more than 1 trillion won in annual sales for the first time last year, with 81 percent of the revenue paid to its U.S. parent, according to an analysis released Wednesday.
Netflix Korea recorded 1.0542 trillion won ($786.4 million) in sales in 2025, up 17.2 percent from 899.7 billion won a year earlier. Of the total, 853.9 billion won was paid to Netflix Inc. for subscription membership purchases and other group fees.
The Korean branch posted an operating profit of 20.3 billion won, giving it an operating margin of 1.9 percent.
The figures were compiled by Rep. Han Joonho of the Democratic Party using audited financial statements. Sales have risen about 67 percent from 631.7 billion won in 2021.
Netflix also maintained a wide lead over local streaming platforms. A government survey of 8,320 people showed that 46.7 percent used Netflix's subscription service, whereas 13 percent used Tving and 4.1 percent went with Wavve.
Domestic platforms suffered a harsh year in 2025 as Tving posted an operating loss of 69.8 billion won, and Wavve reported a loss of 12.2 billion won.
"Netflix has become a service that nearly half of the public pays to watch, but eight out of every 10 won in its 1 trillion won in domestic sales was paid to headquarters, leaving the Korean unit with just 20.3 billion won in operating profit," Han said.
He also called for changes in how Korean producers are compensated for successful content.
"K-content made Netflix the No. 1 platform in Korea, but producers receive margins of only about 3 to 10 percent of production costs regardless of how successful a title becomes," adding "Additional compensation tied to a show's performance should follow its growing influence."
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