On October 25, Reginald Shawn Thompson, the CEO of Netflix Services Korea, did not appear at the Korean National Assembly’s Science, Technology, Information, Broadcasting, and Communications Committee (STIBC) audit. The committee had summoned Thompson as a witness to discuss issues related to “profits from the Korean market and reinvestment into the K-content market,” but he was absent once again. 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 submitted on October 14, stating, “I am part of Netflix Inc.’s legal team in the U.S. and oversee offices outside of Korea, including in America and Europe. I was registered as the corporate representative when Netflix Services Korea was established in July 2015, handling the practical aspects of setting up the company. Since the establishment of the Korean subsidiary, I have not been involved in the Korean business.”
He added, “I am not well-informed about the operation of the Korean subsidiary or the current state of the business in Korea, and thus I am unable to provide thorough testimony.”
The STIBC has requested Thompson’s attendance as a witness at the parliamentary audit every year, but he has consistently 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, published in April, revenue (from subscription membership) increased by about 50 billion won from the previous year, reaching 823.3 billion won.
The surge in revenue was largely due to the popularity of Netflix’s original drama, “The Glory“, starring Song Hye-kyo. Following the release of Season 1 in December 2022 and Season 2 in March 2023, the series became a massive hit, attracting a wave of new subscribers in Korea.
Despite these significant earnings, Netflix Korea has faced criticism for once again submitting a letter explaining the representative’s absence when summoned to discuss issues regarding “profits from the Korean market and reinvestment into the K-content market” at the parliamentary audit.
Source: Herald Economics
