Resources

Table of Contents

Summary
I. Importance of the K-Animation Industry
II. Changes in the K-Animation Industry Environment
1. Market Size
2. Impact of the Corona Pandemic on the Industry Environment
III. Opportunities in the K-Animation Industry
1. Industry Insights
2. Diagnosis of the Animation Industry
IV. Industry Outlook and Recommendations
1. Industry Outlook
2. Recommendations for Industry Growth
V. References

Summary

The K-animation industry, with its high growth potential alongside K-drama, is fueled by the quantitative expansion of OTT platforms and content demand. Its competitiveness in producing 3D children's content and the expansion of intellectual property (IP) such as webtoons and games further promotes the growth of related industries.

· The global animation market continues to grow despite the coronavirus pandemic, with content production and services led by the United States, Japan, and China. Korea ranks as the world's sixth-largest market after the United Kingdom and France.

· Changes in the K-Animation Industry Environment after the Corona Pandemic
(Media Environment): As the media market reorganizes around internet video service platforms (OTT/YouTube, etc.), service competition between platforms is intensifying, while the downtrends in TV and theaters continues until today.
(Creative Environment): Content creation and production targeting audiences aged 15 and above, including short forms and short animations based on proven stories and fandom-driven content IP, are gaining attention.
(Production Technology): Research on the adoption and use of cost-effective production technologies, including digital 2D and 3D tools, game engines, and generative AI, is expanding.
(Production Investment): Expectations of synergy and performance between K-Webtoon and animation are attracting overseas investment from domestic production companies and webtoon platforms, with local co-production being actively promoted.
(Consumption Environment): The MZ generation, who grew up watching children's animation and are highly experienced in using video streaming services on smart devices, has matured into economically powerful main users of OTT services, fostering an industrial environment that could lead into market expansion.

· K-Animation Industry Diagnosis
(Strengths/Opportunities): 1. Successful experience in IP for infants and toddlers 2. Accumulation of technical capabilities in 2D/3D content production 3. Expansion of OTT services, 4. Potential market expansion as the MZ generation grows into a major consumer group, 5. Increasing international interest in K-content.
(Weaknesses/Threats): 1. Lack of diversity in animation content 2. Weakened competitiveness and industrial base 3. Lack of creative professionals 4. Lack of stable revenue models 5. Lack of private investment 5. Intensified global market competition.

· K-Animation Industry Outlook
(Accelerating Service Competition): With the expanding influence of OTT platforms and strategic investments by U.S. and Japanese companies to produce well-made content, platform service competition is expected to accelerate, and the demand for content will continue to grow.
(15+ Content Production): It is expetected to see more focus on the creation, production, and investment of animated content for young adults for OTT services.
(Advanced Production Methods): It is expected to see the gradual expansion of the use of game engines and generative AI to produce high-quality content while reducing the production period, and the introduction of specialized planning producer systems to increase cost-effectiveness
(Expansion of Co-Production/Investment): Domestic companies are predicted to continue co-production and cooperation with overseas companies utilizing their proven K-webtoon/web novel IPs to increase their chances of global success.

· Recommendations for K-Animation Industry Growth
1. Policy support and budget expansion are needed to produce a diverse range of content, including youth-oriented OTT content and 3D animations with well-developed stories, as well as to foster multiple environments for animation creation and production.
2. It is necessary to foster planning producers with expertise and experience, experts in new technology production, and animation writers to strengthen the story base.
3. Effective investment/financial support programs are needed, including restructuring public and private investment programs, activating co-productions with service platform companies, and improving support systems to strengthen the role of matchmakers.
4. Expanding the advanced production system through planned production and expanding domestic and international business support programs to diversify distribution.