Webtoon Entertainment, the South Korean digital comics platform, made its debut on the Nasdaq stock exchange, marking a significant milestone in the company’s expansion plans, particularly in the North American market. The initial public offering (IPO) saw the company’s stock close at $23 on its first day of trading, a 9.5% increase from its IPO price of $21, valuing the company at approximately $2.9 billion.
In an exclusive interview with Deadline, Webtoon Entertainment’s CEO Junkoo Kim and Chief Strategy Officer Yongsoo Kim outlined their vision for leveraging this new capital influx. “We are dominant in Korea, have a strong foothold in Japan, and we are in the earliest stage of a massive market opportunity in North America,” said Yongsoo Kim. “Listing in the U.S. will help accelerate our growth in this market, helping us to get more users and more opportunities with U.S. local players.”
The company plans to use the estimated $315 million raised from the IPO to enhance its technological capabilities, expand its advertising business, and explore new content adaptation opportunities. Webtoon Entertainment, which boasts approximately 170 million monthly active users and 24 million global creators, sees significant potential in adapting its vast library of digital comics into various media formats.
Junkoo Kim highlighted three primary routes for IP adaptations: licensing, co-productions, and select in-house productions. While emphasizing that Webtoon is primarily a platform company, Kim noted that certain key titles might require full creative control to maximize business potential. Recent high-profile adaptations include Netflix series such as “Black Knight,” “Bloodhounds,” and “Sweet Home,” as well as projects on Disney and Amazon Prime.
The company’s unique position in the content creation ecosystem is bolstered by its data-driven approach. “Having a wealth of data from the Webtoon platform proves helpful in analyzing what stories will work for each streamer and different audience segments,” Junkoo Kim explained.
Webtoon Entertainment also addressed its revenue-sharing model with creators, revealing that contracts vary based on factors such as advertising revenue, traffic, and licensing fees. Importantly, creators maintain ownership of their intellectual property, with Webtoon holding a minority stake.
As the company looks to the future, it acknowledges the challenge posed by generative AI in the webcomics ecosystem. While Webtoon creators do not use AI to generate content, the company has incorporated AI into some technical aspects of the workflow to increase productivity.
With its successful Nasdaq listing, Webtoon Entertainment is poised to expand its influence in the global digital entertainment landscape, bridging the gap between user-generated content and mainstream media adaptations.
