The intellectual property (IP) value of K-pop Demon Hunters (Kedehun) is projected to reach up to 1 trillion won, but the actual revenue is generated by American platforms and Japanese production companies, raising concerns about the need for countermeasures. There are also claims in the industry for a 'Kedehun Bill' to comprehensively support a story-centered super IP strategy.
The Korea Chamber of Commerce and Industry noted in a report on the 17th titled 'Report on the Industrialization of New Growth Intellectual Property' that "if royalties from intellectual property exports increase by 10%, the gross domestic product (GDP) is expected to rise by 0.4%." It suggested that support is needed for a story-centered super IP strategy, an IP sovereignty fund, and securing overseas intellectual property rights for the K industry.
According to KORCHAM, while the importance of K-content's IP is emphasized, it was found that there are currently no Korean corporations on the list of the '50 Global Licensors.'
Walt Disney utilized super IPs such as Mickey Mouse for collaborations with clothing brands and major retailers, recording approximately $62 billion in merchandise sales last year. Revenue derived from the 32 top American licensors' IPs amounted to about $242.45 billion (338 trillion won), constituting about 13% of Korea's GDP for the same year.
Japanese Sanrio, known for its long-standing character 'Hello Kitty' ($8.4 billion), Finnish Moomin Characters, symbolizing diversity with character 'Moomin' ($770 million), and Chinese Alpha Group, which owns the national character 'Yang and the Grey Wolf' ($720 million), all made the rankings.
KORCHAM pointed out several reasons for the sluggish industrialization of Korea's IP, including ▲lack of original IPs, ▲insufficient strategies for diverse IP utilization, and ▲lack of investment capacity to support these strategies.
KORCHAM stressed the importance of earning soft money rather than hard money focused on manufacturing, amid rising global export tariff barriers, stating that now is the right time as the Lee Jae-myung administration promotes the industrialization of culture.
The report suggested measures for intellectual property industrialization, including ▲story-centered super IP strategies, ▲IP sovereignty funds, and support for securing overseas IP rights for the K industry.
With the popularity of Kedehun, interests are rising not only for K-pop but also for kimbap, ramen, hoodies, knots, hanok villages, Namsan Tower, fandom culture, and even shamanistic beliefs; however, the actual revenue is being realized by American platforms and Japanese production companies.
The report stated that "the trend of expanding into story-centered IP business is representative," and emphasized that revenue models should be extended to webtoons, games, dramas, merchandise, and performances.
Some argue that creating a 'second Kedehun' myth is an urgent priority, emphasizing that we should not miss out on derivative revenues such as 'Rumi Kimbap,' 'Jinwoo Hoodies,' and 'Lion Boys Soda Pop.' They suggest that it is time to create a 'Kedehun Bill' to comprehensively support a story-centered super IP strategy.
KORCHAM also proposed the establishment of an 'IP sovereignty fund' to respond to OTT platforms. The report pointed out that "in recent times, issues regarding production costs have arisen where OTT platforms like 'Squid Game' (Netflix) and 'Moving' (Disney+) invest the entire production budget upfront, resulting in all copyrights and derived added value belonging to the platform."
It pointed out the need to create a structure where production companies share production costs by providing funds for projects where they hold a certain equity stake, facilitating the sharing of IP rights between production companies and platforms.
It argued that due to the territoriality principle of intellectual property rights, support for 'securing overseas intellectual property rights for the K industry' is necessary.
The report indicated that "to earn money from IP exports, an average application expense of more than 10 million won is required to secure overseas rights," stating that financial support should be expanded primarily for cultural corporations and key technology corporations to secure rights in target countries.
Lee Jong-myung, head of KORCHAM's Industrial Innovation Division, remarked, "In an era where the global market was one, it was possible to grow by creating good products and selling them well, but now growth has become difficult with just this method." He stressed the need to actively promote strategies that generate sustainable global demand through the industrialization of intellectual property rights, such as K-food and content.