Media Economics

The Hidden Investor: Netflix Korea's Economic Impact on K-Content Ecosystem 숨겨진 투자자: 넷플릭스 코리아의 K-콘텐츠 생태계 경제적 파급효과

How 3.3 Trillion Won of 'Invisible FDI' Sustained Korea's Creative Industry Through Crisis 3.3조원의 '보이지 않는 FDI'가 위기의 한국 창작산업을 지탱한 방법

NetflixK-ContentFDIInput-Output AnalysisEconomic ImpactEmploymentCOVID-19

Executive Summary 핵심 요약

재무제표에는 4,500억원만 보이지만, 콘텐츠 제작을 포함한 실제 투자액은 3.3조원(4년 누적)에 달합니다. 이 '숨겨진 FDI'는 반도체 산업 대비 10억원당 3.6배 더 많은 일자리를 창출했습니다. 재무제표에는 4,500억원만 보이지만, 콘텐츠 제작을 포함한 실제 투자액은 3.3조원(4년 누적)에 달합니다. 이 '숨겨진 FDI'는 반도체 산업 대비 10억원당 3.6배 더 많은 일자리를 창출했습니다.

Key Findings 주요 발견

  • Hidden FDI discovered: 3.3 trillion won total vs 450 billion won in financial statements
  • Global Capital Pipeline: Net inflow +487 billion won (2023) - more comes in than goes out
  • Production multiplier effect: 6.9 trillion won (2.07x) over 4 years
  • Employment efficiency: 3.6x higher job creation than semiconductor industry
  • Domestic retention rate: 93.3% of investment circulated within Korea
  • Counter-cyclical buffer: Filled 120.7% of broadcasting ad revenue gap
  • Human capital preservation: Sustained 8,777 jobs during 2020-2021 pandemic crisis
  • Hidden tax contribution: 143 billion won indirect taxes vs 3.6 billion corporate tax (40x)
  • 숨겨진 FDI 발견: 재무제표 4,500억원 vs 실제 투자 3.3조원
  • 글로벌 자본 파이프라인: 순유입 +4,868억원 (2023) - 나간 돈보다 들어온 돈이 더 많음
  • 생산유발효과: 4년간 6.9조원 (2.07배 승수)
  • 고용 효율성: 반도체 대비 3.6배 높은 일자리 창출
  • 국내 체류율: 투자금의 93.3%가 국내에서 순환
  • 경기역행적 완충: 방송광고 감소분의 120.7% 대체
  • 인적자본 보존: 2020-2021 팬데믹 위기 동안 8,777개 일자리 유지
  • 숨겨진 조세 기여: 법인세 36억 vs 간접세 1,431억 (40배)

The Untold Story: What Financial Statements Don't Reveal

숨겨진 이야기: 재무제표가 말해주지 않는 것들

When we evaluate Netflix Korea's economic contribution, most analyses focus on the company's reported revenue and profits. But this approach misses a crucial piece of the puzzle: the massive content production investments that flow directly from Netflix Inc. (US) to Korean production companies - bypassing Korean financial statements entirely.

넷플릭스 코리아의 경제적 기여를 평가할 때, 대부분의 분석은 회사의 보고된 매출과 이익에 초점을 맞춥니다. 하지만 이러한 접근은 퍼즐의 중요한 조각을 놓치고 있습니다: 넷플릭스 본사(미국)에서 한국 제작사로 직접 유입되는 대규모 콘텐츠 제작 투자금 - 한국 재무제표를 완전히 우회하는 자금입니다.

3.3T
Total Investment (KRW)
2020-2023 Cumulative
6.9T
Production Induced (KRW)
2.07x Multiplier
28,501
Jobs Created
4-Year Total
93.3%
Domestic Retention
Stayed in Korea

The Hidden FDI Discovery

숨겨진 FDI 발견

Financial statements show: ~450 billion KRW (two subsidiaries' operating costs)
Actual investment: ~3.3 trillion KRW (including content production)
The gap: 2.9 trillion KRW of "invisible" foreign direct investment that bypasses Korean subsidiaries

재무제표 상: ~4,500억원 (두 자회사의 운영비용)
실제 투자액: ~3.3조원 (콘텐츠 제작 포함)
차이: 한국 자회사를 우회하는 2.9조원의 "보이지 않는" 외국인 직접투자


Part 1: The Global Capital Pipeline - More Comes In Than Goes Out

Part 1: 글로벌 자본 파이프라인 - 나가는 것보다 들어오는 것이 더 많다

A common criticism is that Netflix “takes subscription fees to the US.” But examining the actual money flow reveals a fundamentally different picture: Netflix is not a drain on Korea’s economy - it’s a pipeline that channels global capital INTO Korea.

The Core Thesis: Capital U-Turn Model

Netflix doesn't extract Korean capital - it adds global capital to Korea.

+487B KRW

Net Inflow to Korea (2023)
Content investment (1.22T) minus fee outflow (732B) = +487B KRW

Netflix Korea Capital Flow (2023)

Korean Subscribers
900B
KRW (Revenue)
-->
Netflix Services Korea
151B
KRW (Domestic Costs)
-->
732B KRW
Group Company Fee (to US)
Netflix Inc. (US HQ)
Global Pool
Collects from 190+ countries
-->
Korean Production Companies
1.22T+
KRW (Content Investment)
Net Inflow to Korea: +487B KRW
(Content Investment 1.22T - Fee Outflow 732B = +487B)

Why Korea is a Production Base, Not a Cash Cow

Typical foreign company model: Earn in Korea --> Send profits home --> Zero reinvestment (True capital drain)

Netflix model: Earn in Korea + Earn globally --> Reinvest MORE than Korean earnings --> Korea becomes net recipient

Key insight: Korean subscription fees alone cannot fund productions like "Squid Game 2". Netflix brings global subscriber money from 190+ countries into Korea. Korea is Netflix's "Global Content R&D Center" - where investment flows IN, not out.

Source: DART Financial Statements (2023), Netflix Korea representative confirmation (Content Investment: USD 2.5B / 3 years for 2023-2025)


Part 2: Investment Flow by Year

Part 2: 연도별 투자 흐름

Netflix Korea Investment Flow (2020-2023)
Year Operating Costs
(Billion KRW)
Content Investment
(Billion KRW)
Total Input
(Billion KRW)
YoY Growth
2020 61 330 391 -
2021 93 550 643 +64.4%
2022 104 800 904 +40.6%
2023 192 1,219 1,411 +56.1%
4-Year Total 450 2,899 3,349 -

Source: DART Financial Statements (Operating Costs), Netflix Official Announcements (Content Investment: USD 2.5B / 3 years for 2023-2025)


Part 3: Employment Efficiency - The 3.6x Advantage

Part 3: 고용 효율성 - 3.6배의 우위

When we compare job creation efficiency across industries, content investment creates 3.6 times more jobs per 1 billion won than semiconductor manufacturing.

Employment Inducement Coefficient by Industry (Jobs per 1 Billion KRW)
Industry Employment Coefficient
(per 1B KRW)
Import Coefficient Industry Type
Accommodation & Food (I) 16.23 0.053 Key Industry
Arts, Sports & Leisure (R) 8.44 0.010 Independent
ICT & Broadcasting (J) 8.29 0.159 Platform
Construction (F) 6.54 0.000 Final Goods
Semiconductor/Electronics (C09) 2.34 0.312 Platform
Automobile (C12) 2.23 0.189 Locomotive

The 3.6x Employment Efficiency

Content industry (8.29) vs Semiconductor (2.34) = 3.54x more jobs per 1 billion won

Why? Content production is labor-intensive: directors, writers, actors, cinematographers, lighting, sound, VFX artists, costume designers, set builders, caterers, drivers...

Policy Implication: When measuring FDI quality, employment efficiency should be weighted alongside investment volume.


Part 4: The Counter-Cyclical Safety Net

Part 4: 경기역행적 안전망

This is the most critical finding. When COVID-19 devastated the traditional broadcasting industry in 2020, Netflix didn’t retreat - it doubled down on Korean content investment.

Broadcasting Industry Context (Verified Data)

According to Korea Communications Commission data, Korean broadcasting advertising revenue peaked at 3.30 trillion KRW in 2019 and has been declining since.

Broadcasting Advertising (2019-2024)
-30.6%
Structural Collapse
3.30T --> 2.29T KRW (-1.01T lost)
Netflix Investment (2020-2023)
+269%
Aggressive Expansion
0.33T --> 1.22T KRW (4-year: 2.9T)
Counter-Cyclical Effect: Broadcasting Ad Revenue vs Netflix Investment
Year Broadcasting Ad
(Trillion KRW)
YoY Change Netflix Investment
(Trillion KRW)
YoY Change
2019 (Peak) 3.30 - - -
2020 (COVID Year 1) 2.88 -12.7% 0.33 -
2021 (COVID Year 2) 3.10 +7.6% 0.55 +66.7%
2022 2.88 -7.1% 0.80 +45.5%
2023 2.50 -13.3% 1.22 +52.5%
2024 2.29 -8.4% 1.22 -

Source: Korea Communications Commission Broadcasting Revenue Data (Ad Revenue), Netflix Official (Investment)

Lender of Last Resort

Broadcasting Ad Revenue Drop (2019-2024): -1.01 trillion KRW (-30.6%)
Netflix Investment (2023): 1.22 trillion KRW
Gap Coverage: 120.7% of ad revenue decline compensated
Role: Netflix served as the industry's "lender of last resort" during the crisis


Part 5: Human Capital Preservation

Part 5: 인적자본 보존

The content industry’s workforce is predominantly freelance and project-based. When projects stop, they immediately become unemployed. During COVID-19, Netflix’s continued investment prevented a mass exodus of skilled talent.

Employment Induced by Netflix Investment (Persons)

Why This Matters

Skill Formation: Content industry skills take 7-10 years to develop
Industry Exit Risk: Once workers leave for delivery/gig economy, they rarely return
Netflix Effect: Provided "employment continuity" that preserved K-Content's competitive foundation
2020-2021 Total: 8,777 jobs sustained during pandemic's worst years


Part 6: Four-Year Cumulative Impact Summary

Part 6: 4년간 누적 영향 요약

Cumulative Economic Ripple Effects (2020-2023)
Indicator 4-Year Cumulative Annual Average Unit
Total Investment Input 3.35 0.84 Trillion KRW
Production Induced 6.94 1.74 Trillion KRW
Value Added (GDP Contribution) 3.65 0.91 Trillion KRW
Employment Induced 28,501 7,125 Persons
Wage Employment Induced 25,913 6,478 Persons
Income Induced (Household) 1.52 0.38 Trillion KRW
Production Tax Induced 0.21 0.05 Trillion KRW
2.07x
Average Production
Multiplier
93.3%
Domestic
Retention Rate
3.6x
Job Efficiency vs
Semiconductor
120.7%
Gap Coverage
Ratio

Part 7: The Hidden Tax Contribution

Part 7: 숨겨진 조세 기여

When evaluating Netflix's tax contribution, the conventional approach focuses solely on corporate income tax reported in financial statements. However, this perspective misses 97.5% of Netflix's actual tax contribution to the Korean treasury. Input-output analysis reveals a massive "hidden" tax contribution through indirect taxes generated in the content production supply chain.

넷플릭스의 조세 기여를 평가할 때, 전통적인 접근법은 재무제표에 보고된 법인세에만 초점을 맞춥니다. 하지만 이러한 관점은 넷플릭스의 실제 한국 국고 기여의 97.5%를 놓치고 있습니다. 산업연관분석을 통해 콘텐츠 제작 공급망에서 발생하는 간접세를 통한 막대한 "숨겨진" 조세 기여가 드러납니다.

3.6B
Corporate Tax (KRW)
Visible in Statements
143B
Indirect Tax (KRW)
Hidden in Supply Chain
146.6B
Total Tax (KRW)
4-Year Cumulative
97.5%
Hidden Ratio
Invisible Contribution
Corporate Tax vs Indirect Tax Contribution (2020-2023)
법인세 vs 간접세 기여 (2020-2023)
Year Corporate Tax
(Billion KRW)
Indirect Tax
(Billion KRW)
Total Tax
(Billion KRW)
Hidden Ratio
2020 0.9 21 21.9 95.9%
2021 0.9 35 35.9 97.5%
2022 1.0 49 50.0 98.0%
2023 0.8 38 38.8 97.9%
4-Year Total 3.6 143 146.6 97.5%

Source: DART (Corporate Tax), IO Analysis (Indirect Tax from 4-year cumulative production inducement)

Why Indirect Taxes Matter More

간접세가 더 중요한 이유

VAT, production taxes, and supply chain taxes are embedded in content production:

• When Netflix's Korean production partners purchase equipment, hire crews, rent studios, and buy materials, they pay VAT and production taxes
• These taxes are "invisible" in Netflix's financial statements but represent real contributions to the Korean treasury
• Unlike corporate tax which depends on profitability, indirect taxes are generated whenever production activity occurs
• The 40x multiplier (143B vs 3.6B) demonstrates that production activity generates far more tax revenue than corporate profits

부가가치세, 생산세, 공급망 세금이 콘텐츠 제작에 내재되어 있습니다:

• 넷플릭스의 한국 제작 파트너들이 장비를 구매하고, 스태프를 고용하고, 스튜디오를 임대하고, 자재를 구입할 때 부가가치세와 생산세를 납부합니다
• 이러한 세금은 넷플릭스의 재무제표에는 "보이지 않지만" 한국 국고에 대한 실질적인 기여를 나타냅니다
• 수익성에 따라 달라지는 법인세와 달리, 간접세는 생산 활동이 일어날 때마다 발생합니다
• 40배의 승수 (1,431억 vs 36억)는 생산 활동이 기업 이익보다 훨씬 더 많은 세수를 창출한다는 것을 보여줍니다

Policy Implication: The current debate surrounding foreign digital platforms focuses almost exclusively on corporate income tax. However, input-output analysis reveals that Netflix's contribution through production-induced indirect taxes is 40 times larger than its visible corporate tax. This finding suggests the need for a more holistic framework when evaluating digital platforms' economic and fiscal contributions - one that accounts for the entire value chain impact rather than just the platform's own profitability.

정책적 함의: 외국 디지털 플랫폼을 둘러싼 현재의 논쟁은 거의 전적으로 법인소득세에 초점을 맞추고 있습니다. 하지만 산업연관분석은 넷플릭스의 생산유발 간접세를 통한 기여가 가시적인 법인세보다 40배 더 크다는 것을 보여줍니다. 이러한 발견은 디지털 플랫폼의 경제적·재정적 기여를 평가할 때 플랫폼 자체의 수익성만이 아닌 전체 가치사슬의 영향을 고려하는 보다 종합적인 프레임워크의 필요성을 시사합니다.


Conclusion: Reframing the Debate

결론: 논쟁의 재구성

Old Frame New Frame (IO Evidence)
"Takes subscription fees to US" Net inflow of +487B KRW (2023) - more comes back than goes out
"Pays little tax" 143B total tax contribution - 40x hidden vs visible tax
"Foreign company profit extraction" Structural partner with aligned interests - Korea is production base
"Competes with Korean media" Crisis buffer that saved the ecosystem - filled 120% of ad revenue gap

Methodology & Data Transparency

방법론 및 데이터 투명성

Analysis Framework: Input-Output Analysis using Bank of Korea ECOS Tables

Key Coefficients Used:

  • Production Inducement Coefficient (Leontief Inverse): 2.0147
  • Value Added Inducement Coefficient: 1.0543
  • Employment Inducement Coefficient: 8.290 per 1 billion KRW
  • Import Inducement Coefficient: 0.159

Unit Convention:

  • 1 Trillion KRW = 1,000 Billion KRW = 10,000 Eok Won
  • Employment coefficients are per 1 billion KRW

Data Sources:

  • Bank of Korea ECOS Input-Output Tables (New Series, 2020-2023)
  • Netflix Korea Financial Statements via DART
  • Netflix Inc. Official Investment Announcements (USD 2.5B / 3 years for 2023-2025)
  • Korea Communications Commission Broadcasting Revenue Data

Industry Classification:

  • Netflix Operations: J (ICT & Broadcasting Services)
  • Content Production: R (Arts, Sports & Leisure)

Limitations:

  • Content investment breakdown by sub-sector not disclosed
  • 2024 IO tables not yet available

Methodology

Input-Output AnalysisLeontief Inverse MatrixEmployment Inducement CoefficientComparative Industry AnalysisGap Filling AnalysisTax Incidence Analysis

Data Sources

  • Bank of Korea ECOS Input-Output Tables (New Series) primary
  • Netflix Korea Financial Statements (DART) primary
  • Netflix Inc. Content Investment Announcements primary
  • Korea Communications Commission Broadcasting Revenue Data secondary
  • Broadcasting Industry Survey secondary