The content market in South Korea for 2023, as revealed by the Korea Creative Content Agency, highlights the adoption and utilization of AI, the evolution and expansion of global platforms, the deteriorating performance of domestic OTT platforms, the increasing importance of original intellectual property (IP), and a strong emphasis on strategies such as the real-life adaptation of 40% of secondary copyright revenue, particularly in the realm of dramas. Notably, the surge in console and indie games, the popularity of sub-characters and theatrical animations, and the rise of short-form content were also evident.
Looking ahead to the content industry in 2024, amid global economic downturn and intensified competition, there is an expansion in exploring emerging markets such as the Middle East and India, alongside challenges to established markets. Content sectors like music and drama, already competitive, are expected to become major growth drivers through immersive content creation fueled by technological advancements such as generative AI, virtual production, and virtual reality headsets.
Especially with the advancement of the NFT (Non-Fungible Token) and STO (Security Token Offering) markets and the increasing importance of utilizing Intellectual Property (IP) in the future content industry, the strategic development of content IP is expected to become more crucial. This is anticipated as content IP ventures into industries related to daily life, establishes revenue structures, and expands into various areas, emerging as a vital strategy known as ‘dimensionalization.’ In this process, there is a growing need for institutional development to enhance creativity, activate production, and protect rights.
STARS Group Establishes Foundation for Comprehensive Entertainment Expansion in 2024
Over the past three years, leading the “Korea NFT·STO Contents Association,” STARS Group (chaired by Kwon Tae-hyung) has been driving the digitization, liquidity, and globalization of South Korean content. Welcoming the new year in 2024, STARS Group has embarked on a new challenge by directly participating in various content production areas, including art, broadcasting, drama, and music. This move positions the group to establish itself as a specialized “comprehensive entertainment” enterprise, making preparations and venturing into full-scale business operations.
Since its establishment in 2017, STARS Group has experienced growth by engaging in global market transactions of content copyrights (IP) alongside YouTube and broadcast production. Known as a specialist enterprise, the group has formed a global network in countries such as China, Vietnam, Indonesia, Thailand, and the Philippines to activate the content-based commerce market, including media commerce and live commerce.
To establish a comprehensive entertainment foothold, STARS Group has been strategically acquiring drama production companies since last year. The group is preparing to produce two dramas for cable and OTT channels this year. Additionally, STARS Group has acquired a record label, expanding its business domain to include the production of idol and girl group programs, as well as venturing into artist and actor management.
Furthermore, STARS Group has formed a consortium with a Changwon-based real estate specialist to participate in the operation of Changwon Cultural Complex Town. This complex, built in 2017 by Changwon City to create a Hallyu experience space, is the largest facility south of the Han River. Changwon City aims to establish a facility with attractive content unique to Changwon, not found in other cities, making it a compelling cultural space frequently visited by citizens.
In pursuit of its content business, STARS Group plans to invest approximately 10 billion won through collaborations and partnerships with domestic mid-sized companies. The group anticipates securing revenue of over 30 billion won this year and has expressed its intention to enter the KOSDAQ market in the future.
STARS Group Attempts First-ever Collaboration of Star and Artists in South Korea through ‘MBN Hello Art’
STARS Group, chaired by Kwon Tae-hyung, has embarked on building the ‘STARS Platform’ to lead innovation in the content industry. This involves producing the broadcasting program ‘MBN Hello Art’ and organizing the ‘STO Art Fair’ in collaboration with MBN, marking the first-ever domestic art startup program. Through these initiatives, the company aims to directly connect creators and consumers through transactions and link a third-party investor, driving innovation in the content industry.
‘MBN Hello Art’ is a groundbreaking broadcasting program planned and produced by STARS Group, making its debut on MBN from January 13th (Saturday) this year and continuing until March. It is the first program in South Korea to utilize a star (entertainer) as a curator for a day, introducing and supporting emerging or promising artists. The show aims to serve as a startup platform for these artists, helping them advance into the spotlight as star artists. It is scheduled to air a total of 8 episodes every Saturday until March.
‘MBN Hello Art’ draws attention as a pioneering project by STARS Group, leveraging the company’s experience in utilizing star marketing for the collaboration of stars and the fashion industry. In 2006, STARS Group planned and launched the STAR Shop, a collaboration between stars and the fashion industry, located in Dongdaemun Milliore. Building on this expertise, ‘MBN Hello Art’ is the first program in South Korea to attempt star curation through collaboration with the art and art industry. The show aims to discover and nurture star artists through a startup project, generating significant buzz and discussions since its broadcast.
In light of this, STARS Group plans to host the ‘STO Art Fair’ in March this year. The event will not only feature a special exhibition of works by artists who appeared on ‘MBN Hello Art’ but also include collaborative gallery exhibitions, and further extend to hosting a ‘Special Conference’ for the latest information and knowledge sharing related to NFTs and STOs. Additionally, the fair will organize an ‘Auction Investment Show’ to support the discovery of innovative and promising art talents, present the ‘Art Awards’ to honor outstanding artists who shone in the year 2023, and conduct various events such as a ‘VIP Party’ aimed at fostering a community of artists, collectors, and investors for the development and growth of the art industry.
Furthermore, to facilitate the seamless establishment of the ‘STARS Platform,’ STARS Group is assembling a team of experts and support personnel. They plan to implement an ‘Art O2O Project,’ which integrates broadcasting, online, and offline activities. This project aims to explore the direction of the future art industry, incorporating NFTs and STOs.
The ‘STARS Platform,’ driven by STARS Group, is anticipated to play a significant role in the art industry. After the boom in the NFT market last year, the platform is poised to become meaningful in the upcoming STO market in the art industry.
The global art market reached approximately 90 trillion won in 2022, showing a growth of around 3% compared to the previous year. The Korean art market, accounting for about 1% of the global market, saw a significant increase of around 37% year-on-year, reaching approximately 1 trillion won. Primary sales from galleries amounted to 500 billion won, secondary sales from auctions totaled 230 billion won, and art fair sales reached 300 billion won. Although auction sales decreased, the overall art market is continuing its growth trend.
Particularly noteworthy is the growth, digitalization, and globalization of the art industry, as evidenced by events like the Frieze in the UK and the 2023 KIAF SEOUL, which took place for the second time last year under a five-year contract, attracting over 80,000 attendees. The art and art industry is currently receiving unprecedented attention from the public.
STARS Group Establishes NFT and STO Specialized Association and Center, Actively Building the ‘STARS Platform’
STARS Group, with the goal of digitizing, liquidating, and globalizing content in South Korea for the first time, has launched the Korea NFT Contents Association (KONCA) and the Korea NFT Center (KNC). The company is actively working towards building the ‘STARS Platform,’ aiming to innovate the content industry by connecting creators and consumers of cultural and artistic goods through direct transactions and linking investors, especially in preparation for the upcoming STO era following the NFT trend.
The Korea NFT Center, opened by STARS Group in Gangnam last year, is the first domestic comprehensive cultural exhibition space. It features physical art and NFT exhibitions, community facilities, and a media center. The center is equipped to support the evaluation, certification, issuance, exhibition, and sale of digital cultural and artistic assets through NFTs and STOs. It serves as a foundation for expanding into diverse areas such as K-pop, dramas, broadcasting, real estate, jewelry, services, and more, moving beyond the art-focused NFT market. STARS Group is actively establishing extensive business cooperation with domestic securities firms, investment firms, financial institutions, and platforms to facilitate the expansion into the tokenized securities (STO) market.
The STARS Platform is set to transform cultural and artistic goods into digital assets through blockchain-based ownership proof for digitalization and assetization (tokenization/securitization). This initiative aims to activate global transactions on exchanges, preparing for the NFT and STO era. It also seeks to support content creators and copyright holders in gaining true recognition for the value of their work. Utilizing blockchain and Web3 technologies, it aims to enable clear ownership of one’s creations. Furthermore, the “ARTFLIX” platform goes beyond simple art appreciation, allowing users to collect their own art pieces and connect directly with artists worldwide, becoming a ‘Global Art Network Platform.’
In addition, the STARS Platform plans to expand its application not only to art but also to a wide range of creative works, including dramas, culture, variety shows, documentaries, broadcasts, films, webcomics, and dramas. Through the establishment and construction of the “International Digital Content Asset Center (IDCAC)” and the “Global Culture Asset Trade Platform (GCAT),” the platform aims to integrate cultural creation and transactions into a unified global network. These platforms are expected to establish themselves as central hubs for trading the value of culture worldwide, playing a central role in opening up revenue-generating possibilities for both creators and investors globally.
STARS Group, Subsidiary Companies Overview and Growth History
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