Since NAVER Webtoon’s inception in 2004, the way South Koreans perceive comics changed entirely. People preferred the idea of being able to read their favorite stories on their phones over physical comics as they could not afford the typically expensive hard copies.
It brought on a new era of accessibility for entertainment. Consumers could read the latest episodes on their way to work without going out of their way to purchase the latest addition in stores. Thus, it was not exactly surprising when Webtoon went international in 2014.
Popular comics such as “Sweet Home,” “True Beauty,” and “Cheese in the Trap” have long since transitioned into TV shows and become staples of international entertainment. Due to NAVER Webtoon’s international launch, South Korean culture gradually introduced itself to other cultures, especially the West.
But over time, Webtoon’s signature free-to-read model has slowly crumbled under the weight of the increasing competition from other companies such as Tapas, Manta, and Lezhin Comics. To adapt to this rapidly expanding industry, NAVER Webtoons has resorted to adapting new business models that are problematic for consumers and content creators, both financially and creatively.
In a race to monetize online comics, Webtoon created an in-app currency system using ‘Coins.’ Readers can obtain Coins by participating in events or purchasing them with real money. However, over time, Webtoon has gradually decreased the number of events, pushing readers to pay for in-app Coins instead. To make things worse, the price of Coins skyrocketed.
In April 2023, to counter the increased app store commissions, Webtoon raised its prices by twenty percent. It is not necessarily an issue for Webtoon to raise prices, even if it does contradict Webtoon’s renowned free-to-read model and accessibility. The problem is the app’s new way to procure Coins without directly paying Webtoon: through third-party apps and websites.
With fewer in-app events, Webtoon persuades readers to interact with other organizations. These interactions include donations, spending a set amount of money, taking surveys, etc.
However, this method is largely questionable. Users are encouraged to make uninformed purchases and agreements, some involving TEMU, a corporation currently facing allegations of malware and scamming their customers. With Webtoon endorsing third-party engagement, readers are getting involved with organizations that may have malicious intent.
Webtoon’s push for monetization also threatens artists’ creative integrity. Besides the increased promotion for third-party engagement, Webtoon also puts a substantial amount of resources towards marketing webtoons, including banners on the website/app, YouTube advertisements, in-person events, and more.
However, Webtoon currently monopolizes these resources towards one specific genre: romance, leaving little room for creativity. Since many creators rely on the promotions their Webtoons receive, artists may have to conform to what is popular to make a livelihood. Artists who draw Webtoons dabbling in genres like mystery, sports, and education may struggle to gain a wider audience.
Instead, they may have to sacrifice their creativity to gain larger traction. With the current focus on maximizing profits, Webtoon is promoting comics that do not necessarily need promotion anymore. Stories like “Lore Olympus” already have thousands (if not millions) of readers worldwide, having released physical comics and/or TV shows.
Webtoon’s distribution of marketing resources needs to go out towards lesser-known comics to support smaller creators. Instead, because romance generates more revenue on average than any other genre up to date, Webtoon has focused on promoting what sells better rather than supporting the creators who need it.
Since 2004, Webtoon has become a reliable source for people to access their favorite online comics for free. The current popularization of webcomics, however, has put Webtoon’s renowned accessibility in jeopardy.
In an attempt to compete with other well-known webcomic providers, as well as to counter rising inflations and costs of running, Webtoon has resorted to changing its monetization system. More and more episodes are requiring readers to either make in-app purchases or engage with third-party websites. To survive, creators must cater to the romance genre or romantic subgenres to gain promotional resources for their stories.
At the end of the day, Webtoon is ultimately a business. It is not inherently wrong for them to impose a new financial system, but the methods Webtoon is resorting to impose issues on readers and content creators alike.
Article Written by Amber Li of Springbrook High School
Graphic by Arpa Gomes of Springbrook High School