On October 25, Reginald Shawn Thompson, CEO of Netflix Services Korea, failed to appear at the audit of the Science, Technology, Information, Broadcasting and Communications Committee (STIBC) of the Korean National Assembly. The committee had called Thompson as a witness to discuss issues related to “profits from the Korean market and reinvestment in the K-content market,” but he was once again absent. Instead, Netflix Services Korea’s head of policy and legal affairs, Jung Gyo-hwa, attended the audit as a witness.
Thompson explained his absence in a letter sent on October 14, stating: “I am part of Netflix Inc.’s legal team in the United States and supervise offices outside of Korea, including Americas and Europe. I was registered as a corporate representative when Netflix Services Korea was founded in July 2015, handling the practical aspects of setting up the company. Since the establishment of the Korean branch, I have no longer been involved in Korean affairs.“
He added: “I am not well informed about the Korean branch’s business or the current state of affairs in Korea and therefore am unable to provide an in-depth testimony.”
The STIBC requested Thompson’s presence as a witness at the parliamentary audit every year, but he always cited the same reasons for his absence. This has led to criticism that Netflix is neglecting its responsibilities in the Korean market, despite its considerable influence. Last year, Netflix Services Korea’s revenue was close to 1 trillion won.
According to Netflix Services Korea’s 2023 audit report, released in April, revenue (from subscriptions) increased by about 50 billion won compared to the previous year, reaching 823.3 billion won.
The increase in revenue was largely due to the popularity of Netflix’s original drama series, “The Glory,” starring Song Hye-kyo. After the release of the first season in December 2022 and the second season in March 2023, the series became a huge success, attracting a wave of new subscribers in Korea.
Despite these significant gains, Netflix Korea was criticized for once again submitting a letter explaining the representative’s absence when summoned to discuss issues regarding “profits from the Korean market and reinvestment in the K-content market” during the parliamentary audit.
Source: Herald Economics
