Netflix and Google’s profits in South Korea are said to have increased, and this was revealed in their first full-year comparative disclosure to authorities in the country. They revealed a 52% and 33% increase in revenue and around 90% growth in operating profit.
The increase is said to have come as streaming has become the common source of entertainment for Korean households. According to Pulse News, Netflix Service Korea said late last week that its operating profit in 2021 reached 17.1 billion won, or about $13.89 million, an increase of almost 95%. year on year on sales of ₩631.6 billion. The gain from this increase was 52% over the previous year.
It was added that streaming service revenue was ₩629.5 billion last year and up 57.9% from ₩398.8 billion in 2020. Netflix brought its streaming service in South Korea in 2016 and has gained more and more subscribers since then.
As for Google Korea, its 2021 sales rose 32.8% year-on-year to ₩292.3 billion. Its operating profit climbed 88.4% year on year to ₩29.4 billion with net profit up 152.1% to ₩15.6 billion. For its growth in the country, the company’s corporate tax for the last year had to pay ₩13.8 billion, an increase of 43.1% from the year 2020.
The Korea Herald reported that Google Korea recorded sales of £292 billion and App Store transaction fees were still excluded from that total. Amid ongoing controversy with the company’s new in-app payment policy, it managed to post sales of $237 million year-over-year, up 32.8% year-on-year .
Based on the regulatory filing the multinational tech company submitted to the Korean regulatory bureau, its operating profit reached 29.4 billion won, showing an 88.4 percent year-on-year increase. For Google Korea’s net profit, it rose 152.1% from a year earlier and reached 15.6 billion won.
Meanwhile, it has been said that the commissions excluded from its Play Store app in South Korea are estimated at trillions of won. Google’s dispute with the local regulator has yet to be resolved and is ongoing as Korean authorities believe the company’s in-app payment policy violates the country’s rules. In its filing, Google Korea did not include revenue from transactions on its App Store because the Google Play server used is located in Singapore.