Is the Webtoon Industry in Crisis? (Part 1)
Is it selfish to say, "I hope not"?
“What factors are contributing to the webtoon industry’s crisis?”
That’s the question the Maeil Business Newspaper (MBN) sought to answer in a recently published article. Aside from being well-written and interesting to read, it’s an insightful look at not just the webtoon industry itself, but how economists and industry insiders view the webtoon industry.
I highly recommend reading the article in Korea (or just Google Translating the page) because it outlines the 5 large hurdles facing the webtoon industry in Korea.
But today I’m more interested in the context of their analysis and how the Korean market views the webtoon industry in Korea. So, here’s my analysis of their analysis.
The Threat of Short-Form Content
If you follow me on LinkedIn, you’ll know I write relatively often on the subject of short-form video content and the webtoon’s industry’s obssession with it (such as “Are Short-Form Videos the Future of Webtoons?”.
The Daily Economist connects the dots, equating short-form video to a threat because it’s consumed in a similar manner to webtoons. TikTok videos and Youtube shorts are meant to be consumed quickly in short sprints, but can add up to binge-consumption under the conditions.
And we’re even starting to see the conversion of the two mediums with WEBTOON introducing their short-videos onto their platform as well as the upcoming launch of “Cuts” as confirmed by ANN.
Larger webtoon platforms have pivoted to face this “threat” directly with RIDI going so far as to launch a short-form K-drama platform in Japan last month. In recent years, platforms have chosen to either (a) enter the market by investing in short-form production directly or (b) started looking to license IPs to studios and production houses.
Whether short-form videos are a true threat to webtoons or not ignores one large inescapable truth: short-form videos are videos, webtoons are webtoons.
A lot of market research has been performed in this subject and it’s undeniable that the method of consumption, mode of delivery and even audience slices overlap when looking at the two mediums. But mixing the two doesn’t guarantee success, otherwise sporks would outsell spoons and forks.
And while even that may be up to interpretation, there’s one fact that isn’t. This constant effort to be on the edge of what’s “hot” or “trending” belies an industry-wide fear that webtoons, as a medium, are a fad.
Reduced Returns on Reincarnation and Rebirth
At a time when the isekai and romance fantasy genres are publishing more new titles than ever, there is a concern that these genres are heading for collapse.
The prevaling opinion is that these genres are overspent and bloated. MBN points specifically to “novel-comics”, the term given to webtoons adapted from webnovels.
Considering the same concerns and complaints can be found in international markets, the concern is a valid one. Though there are significant steps that publishers have taken to branch out, but other genres just don’t have the same returns.
Compounding the problem is the growth of the webnovel industry. Or, more specifically, the lack of growth. While webnovels have always been popular in Korea, monetizing them has been increasingly difficult. “Millie’s Library”, a new venture by Korea Telecom, recently ran afoul of creatives thanks to their subscription-based revenue system. But, while the popularity of digital content is at an all-time high, webnovels have noticeably been absent from the stage of international popularity.
Yes, standout titles like “Under the Oak Tree” have done exceedingly well but they are the exception. Webnovels are exceedingly long in Korea, often hitting the upper hundreds in episode count which make their translation equally expensive. And while there are multiple Korean companies operating webtoon platforms internationally, the same cannot be said for webnovels.
That’s a very long and roundabout way of saying that the webtoon industry relies heavily on a growing webnovel industry at a time when it isn’t growing.
Piracy is the Tip of the Iceberg
In 2025, Kakao and Naver have taken more steps to combat piracy than any year previous both at home and abroad. Two of the largest piracy websites in Korea were taken down and the operators charged with legal action.
Similar actions have been taken internationally with successful results, but… it’s not enough. The piracy problem for webtoons and manga has long been a game of “whack-a-mole”. Shutting down piracy websites might have a more noticeable effect in smaller markets like Korea and Japan, but the same can’t be said for the entire English-speaking world.
So, how should publishers and platformers handle piracy?
The “straw man” argument in favor of piracy is always distribution. If webtoons were more accessible, either through price or availability, then fewer users would pirate.
Except in a world where webtoons load just as quickly on pirate sites as they do on official sites (with the same quality, I might add), that doesn’t work. The only difference in experience is pricing. And nothing beats free.
At its core, the piracy problem is a PR problem. And the question that platforms and publisher really need to answer is frighteningly simple, what compelling reason is there for readers to pay for content they could read for free?
Pricing is only one part of the equation and value is the other. And since there’s no way to beat “free”, platforms and publishers need to focus on providing users with a value proposition that piracy can’t. Until then, platforms’ll just have to keep the swinging that mallet.