[Edaily Reporter Kim Se-yeon ] A single drama that becomes a global hit can generate tens of billions of won in revenue. Even a single song by a popular idol group generates copyright royalties over a long period. We live in an era where it’s possible to earn vast sums of money without owning buildings or factories. However, the situation changes when trying to secure a bank loan using such content as collateral. This is because it’s difficult to assess how much revenue it will generate in the future. While the value of K-content is soaring in the global market, critics point out that the financial sector’s loan screening process still centers on tangible assets such as real estate.

According to the report “The Secret Behind the K-Craze: K-Flywheel,” published by the KB Management Research Institute on the 24th, exports from the domestic content industry last year were estimated at approximately $14.9 billion. The average annual growth rate since 2015 has reached 10.2%. The popularity of K-content is also spreading to other industries. Last year, combined exports of K-Food and K-Beauty totaled approximately $37.8 billion, exceeding ship exports ($32 billion).
The way content generates revenue has also changed. Whereas in the past, the main sources of revenue were producing dramas or movies to sell to broadcasters or achieving box office success in theaters, a single piece of content is now distributed worldwide and expanded into various products and services. For example, a popular web novel is adapted into a webtoon and then into a drama. It is a structure where intellectual property (IP) created once generates new revenue multiple times.
The problem is that it is difficult for the financial sector to properly evaluate assets that generate revenue in this way. When lending money to companies, banks typically examine their financial condition, repayment capacity, and the value of collateral. While the collateral value of factories or real estate can be assessed relatively easily, the same cannot be said for the copyrights to TV dramas or the future revenue of characters. Revenue varies significantly depending on a work’s success, and it is difficult to predict how long it will continue to generate income.
From the perspective of content companies, they may face difficulties in securing funding even if they have high growth potential. The KB Management Research Institute also noted that, despite the rapid growth of the domestic content industry, financing remains limited to conservative forms of indirect finance, such as policy-backed guarantees or secured loans.
From the financial sector’s perspective, there is also a risk of missing out on new revenue streams. This is because the success of K-content is evolving beyond one-off hits into an industrial structure that generates sustained revenue. Financial institutions must seek new revenue within the “K-Flywheel.” This means creating value through a virtuous cycle: enhancing the quality of domestic content and reinvesting the capital and talent attracted by overseas success back into the production system.
The KB Financial Research Institute suggests that for financial institutions to participate in this industry, they must first change their approach to lending. A prime alternative is the securitization of content IP—a method of raising funds based on future copyright revenues from dramas, music, and other content. Production companies can secure the necessary funds before revenues are generated, while investors can share in the future profits.
A plan was also proposed in which banks, securities firms, and asset management companies would divide roles and invest collectively. Under this model, banks would provide loans based on relatively stable cash flows, while securities and asset management firms would participate in investments that offer higher returns in exchange for assuming greater risk. The aim is to supply funds to the content industry while diversifying risk at the financial group level.
To achieve this, the ability to evaluate the future value of content is essential. Before that, data on revenue and cash flow by genre must be accumulated, and a team of specialized evaluators must be expanded. Relevant systems and financial infrastructure must also be established to enable content IP to be utilized as an independent investment asset.
We are in an era where K-content is gaining global recognition. Now, a new question is being posed to the financial sector: How much value can banks assign to content that the world is willing to pay for?