Skip to content 
Let me tell you about June 30, 2025 — the day a TV show finale wiped out half a billion dollars in market capitalization in just three trading days.
Picture this: You’re watching financial markets that morning, and suddenly you see Artist Company plummeting 21%. Artist Studio down 24%. Dexter Studios falling 8.5%.Your first thought? “Must be some major economic announcement or geopolitical crisis.”
Nope. It seemed to be because people didn’t like how Squid Game ended.
Welcome to the $13.2 billion world of Korean content exports, where audience sentiment doesn’t just influence culture — it can move mountains of money.
The Numbers That Will Blow Your Mind
Before we dive into the carnage, let’s establish just how massive this industry has become. South Korea’s content industry generated $13.2 billion in exports in 2022 — that’s a 151% increase since 2014.
The broader Korean Wave (hallyu) or K-pop culture now influences $14.2 billion worth of exports annually and contributed an estimated $12.3 billion boost to the Korean economy in 2019 alone.
But here’s the kicker: In 2004, the Hallyu effect contributed just 0.2% of Korea’s GDP at USD 1.87 billion. Fast forward to today, and we’re talking about an industry that has seen steady growth in both sales and exports over the past five years, with exports growing at a higher rate than sales.
Now, Squid Game sits at the absolute pinnacle of these exports. Season 1, which was launched in September 2021, became the first Korean drama to top Netflix’s global charts, reaching number one in 94 countries. Netflix estimated that Squid Game had drawn over 111 million member households worldwide after 17 days, and over 142 million after 28 days, becoming the service’s most-watched series at launch. By late 2024, Season 1 had drawn an audience of 330 million and more than 2.8 billion hours viewed.
But wait, it gets better. Squid Game Season 2 broke a Netflix record with 126.2 million views in its first 11 days. Season 2 amassed 68 million views in its debut, ranking #1 in 92 countries and breaking the record for most views for a show in its premiere week. Season 2 captured 152.5 million views on Netflix, becoming the third most-watched series in Netflix history.
So how does the most successful non-English series in streaming history cause a stock market crash? That’s where the story gets interesting.
The $2.5 Billion Bet That Backfired
Netflix saw the Korean content goldmine and went all-in. In 2023, they announced a $2.5 billion investment in Korean content over four years — more than doubling their previous investment since 2016. With just 52 million people in the Korean market, entertainment companies knew their growth depended entirely on creating content that would work internationally.
The investment thesis seemed to be bulletproof. Korean content exports had grown 151% in a decade. Korean broadcast content was the largest creative industry by sales revenue in 2022, as well as the second-largest in terms of exports. Production costs were lower than Hollywood standards, and Netflix’s 260+ million global subscribers were increasingly hungry for non-English content.
Companies like Artist Company, where Squid Game’s main star Lee Jung-jae is the largest shareholder, weren’t just entertainment stocks — they were proxies for Netflix’s Korean spending spree. Lee Jung-jae’s estimated net worth is around $12 million, decent money but not extraordinary by global standards. Yet Artist Company was valued at hundreds of millions because investors didn’t seem to be betting on his acting ability. They seemed to be betting on his association with Netflix’s $2.5 billion Korean investment.
When Season 3’s poor reception suggested that even the most successful Korean content could disappoint audiences, investors appeared to suddenly be questioning everything.
The Audience Revolt That Broke Everything
Here’s where the numbers get brutal. Season 3 earned an 83% approval rating among professional critics on Rotten Tomatoes. Sounds great, right? Wrong. Audiences gave it just 51%.
Korean audiences were even more brutal. As one 24-year-old Seoul viewer put it after watching the finale: “It felt like the director was delivering a message that good people finish last.” In a culture where entertainment reflects social values, this wasn’t just artistic criticism — it was a rejection of the show’s entire worldview.
But here’s the paradox that made investors lose their minds: Despite the poor audience reception in Korea, the show still topped Netflix’s global rankings in every single country. FlixPatrol confirmed it — Squid Game Season 3 was simultaneously the world’s most-watched show and a complete financial disaster for Korean stocks.
Even more telling, Google Trends data showed that searches for “Korean won” spiked globally after Season 3’s release, just as they had for previous seasons. Americans were literally googling Korean currency to figure out what 45.6 billion won meant in dollars (about $33.6 million, by the way). International audiences were still engaged enough to convert fictional prize money into real currency, but this global interest translated to zero protection for Korean entertainment stocks.
The Streaming Economics Trap
Here’s what makes this story brutal from a financial perspective: the asymmetric risk distribution between Netflix and Korean production companies. Unlike traditional media, where successful content generates revenue through multiple channels — theaters, home video, TV syndication — streaming content typically involves a single upfront payment to producers.
Netflix captures the long-term value through subscriber acquisition and retention. The platform’s stock has risen 125% since Squid Game’s 2021 debut, while the S&P 500 gained just 39%. Korean production companies get paid once and then face the full volatility of audience sentiment without any upside protection.
It’s like selling a lottery ticket and keeping the risk but none of the reward.
This explains why Netflix executives remain unfazed by the Korean stock carnage. Minyoung Kim, Netflix’s VP of content for Asia, noted that Squid Game “opened up more global willingness for non-English language shows.” From Netflix’s perspective, even disappointing productions are part of a larger strategic success that’s driving global subscriber growth.
The Retail Investor Psychology
In 2021, Korea’s content industry generated 137.5 trillion won ($103 billion) in sales and employed over 108,000 businesses. The Korean cultural content market size is approximately USD 79.1 billion (2023 forecast), ranking seventh in the world. When you’re talking about an industry this massive, individual production failures don’t just hurt companies — they can have macroeconomic consequences.
The Global Success Paradox
Here’s what makes this story truly interesting: it happened against a backdrop of continued Korean content dominance. The Korean gaming industry is expected to reach $20 billion in 2024. K-pop continues generating billions globally. South Korea ranked number ten out of 193 countries in the 2024 Nation Brands index, with high marks in cultural influence.
The Korean Wave has been recognized as a form of soft power and as an important economic asset for South Korea, generating revenue through both exports and tourism, with keystone successes including BTS, Blackpink, the Oscar-winning Parasite, and of course, Squid Game itself.
What Everyone Missed: K-Dramas Still Print Money
Despite the Season 3 fallout, Korean content remains incredibly valuable to Netflix. According to Parrot Analytics, since Q4 2021 — just after Squid Game Season 1 — Korean dramas have generated $3.4 billion in global subscriber revenue for Netflix.
In Q1 2022, K-dramas accounted for just over 5% of Netflix’s global subscriber revenue.
Before Squid Game, K-dramas made up less than 2%. Since 2023, they’ve stabilized at over 3% every quarter.
Netflix, riding that success, rolled out shows like My Name, Hellbound, The Silent Sea, and All of Us Are Dead. The K-drama boom isn’t over — it’s just no longer surprising.
The China Wildcard
Here’s what could flip the script again: China.
After years of an informal ban, signs are emerging that China might reopen its doors to Korean entertainment. Tencent has quietly bought a 9.7% stake in SM Entertainment. Korean concerts are being approved.
If the ban lifts fully, Korean content companies like CJ ENM, HYBE, and Studio Dragon could see a massive rerating. China used to be one of their most lucrative export markets — and its return could be the boost investors are waiting for.
The Final Irony
Squid Game will likely remain profitable for everyone involved. Netflix wins. Creators get paid. Global audiences are still watching.
But for Korean entertainment investors? The lesson is a hard one.
You can have 330 million viewers and 2.8 billion hours of engagement. You can top charts in 94 countries. You can build an empire off one show.
But when the next season flops, the market doesn’t care.
Because entertainment stocks are sentiment trades — dressed up like fundamentals.
The games may be fictional, but the $500 million in losses are real.
