I am confident that the Japanese business can continue to grow. Being the number one in service platform sales is just the beginning. We will build a creative ecosystem in Japan that other companies cannot follow.
Naver Webtoon is credited with digitally transforming the book-centric Japanese manga culture through its Japanese service Line Manga. Line Manga not only services Korean works listed on Naver Webtoon but also discovers local Japanese works and nurtures authors while actively securing global intellectual property (IP). On the morning of the 12th, we met with Kim Shin-bae, Chief Growth Officer (CGO) of Line Digital Frontier, at the Tokyo office.
Kim, who earned a bachelor's degree in electronic engineering from KAIST and a master's degree from Harvard University, joined Line Plus as a manager in the overseas business team and volunteered to move to Naver Webtoon when it began expanding globally in 2017. He noted, "I was a student who visited comic book stores more often than classrooms in college," and said, "I raised my hand, confident that I could do well and went to Naver Webtoon." He was promoted to Director of Line Digital Frontier in 2021 after serving as the Strategic Officer of Naver Webtoon and has held the position since 2022.
◇ Comprehensive service overhaul in 2021… "Building an independent webtoon ecosystem in Japan"
Since his appointment, Kim has completely overhauled the service to encourage local users to become familiar with webtoon culture. Line Digital Frontier expanded its Korean webtoon lineup through a major app service improvement project for Line Manga in 2021 and upgraded the UX/UI for user convenience. Additionally, the company entered the expansion of its web-based digital comic business by acquiring eBOOK Initiative Japan in 2022. Recently, it has also been investing in local production companies like 'Studio Number Nine' to discover emerging authors.
On this day, Kim stated that Line Manga has established an independent position in Japan, the home of comics, coexisting with the traditional market centered on book publications. The key to the webtoon entertainment business of Naver Webtoon’s parent company is discovering authors and co-creating content. The company also utilizes artificial intelligence (AI) technology to recommend various works within the platform, guiding readers to broaden their viewing range. At the same time, it is reinforcing the webtoon ecosystem by planning dramas, animations, and merchandise design (MD) based on popular IP.
Kim noted, "For example, the work 'The Senior is a Boy' is a piece that originated from our amateur platform. It was recently adapted into a TV animation and even developed into a feature film,” and added, "Works created in Japan are building an independent value chain. We aim to operate 20 animation projects this year."
Line Manga's revenue is on the rise. As of the third quarter last year, revenue reached $174.2 million (approximately 253.5 billion won), with paid content revenue at $159.9 million, representing an increase of 21% and 19%, respectively, compared to the same period last year. The proportion of paid subscribers also increased from 9.4% to 10.3%.
It is also increasing its local market share. According to the company, as of January, Line Manga's share of the Japanese application market exceeded 50%. Initially struggling against competitor Kakao Piccoma when entering Japan, Line Manga recorded the highest revenue in the overall app market, including games, in May last year. Below is a Q&A session with Kim.
-What does the Japanese market mean to Naver Webtoon?
Japan is the most important market for webtoon entertainment, encompassing current revenue and future performance. The markets Naver Webtoon and webtoon entertainment are focusing on are Korea, Japan, and the United States. These three countries have unique and expandable comic cultures. Currently, Japan's anime culture and America's comic culture are the two main pillars of the entire industry. In the case of the U.S., we are planning to develop local-centered intellectual property (IP) business while targeting global fandom centered on Japanese-style animation in Japan.
-How can Line Manga's influence in Japan contribute to the Korean content market?
Naver Webtoon is developing the Korean ecosystem, while Line Manga takes charge of local studios and grows together. There are even works that generate significantly more revenue in Japan than in Korea. As these cases increase, Korean studios are considering targeting not only Korea but also Japan, where they can generate larger revenues. Additionally, with the revenue generated in Japan, they can reinvest in various works so that Korean studios can further develop.
-What is more important to Line Manga's business strategy: localizing successful IP from Korea or producing original IP in Japan?
There is no more important direction. When marketing and promoting various works within Line Manga, we do not care at all where the work comes from, which author created it, or what its background is. We simply consider whether the work is interesting or not. This is why various successful marketing cases are emerging, and works that were not popular in Korea may become more popular in Japan.
-Opened the first pop-up store for the webtoon 'The Admission Mercenary'. What are your expectations?
It's about accumulating data. The MD (merchandise design) business in Japan is built around animation. Ultimately, when an animation comes out, a fandom is built, and whether online or offline, securing a distribution network is the formal structure. There has yet to be a case where a work exclusively provided by Line Manga has led to offline distribution. The first attempt is the 'The Admission Mercenary.' We have around 2 to 3 weeks left for the pop-up store, and rather than the results, we want to focus on building a database of where sales occur. We will be expanding the MD commercialization in the Japanese market over the next several decades, and I hope you see this as the beginning.