As webtoons struggle, platforms turn to short-form content

Korea Herald

2 days ago

Industry leaders Naver and Kakao launch TikTok-style features amid declining readership and stagnating growth
Everyone's hooked on short-form video these days. Now South Korea's web comic industry, which built its empire on static panels and endless scrolling, wants in on the action.
Naver Webtoon announced last week that it would launch Cuts, a new short-form animation platform, in September. The service will transform traditional webtoons into bite-sized animated clips, complete with original content created specifically for the format. Professional artists and everyday users alike will be able to upload clips, the company said.
The company had already tested the waters with a "New & Hot" feature in May, offering trailer-style highlights on its North American platform. Unlike that highlight reel service, Cuts will allow users to create entirely new content alongside clips adapted from existing webtoons.
Rival Kakao Entertainment got there first, having rolled out its AI-powered short-form tool, Helix Shorts, in April. The service uses artificial intelligence to transform webtoons into 40-second video clips. More than 40 percent of all short-form content on its Kakao Page platform is now produced using Helix Shorts, according to Kakao.
The pivot comes as platforms scramble to capture younger users increasingly drawn to the medium. Last year, 70.7 percent of South Koreans reported viewing short-form content, a 12.6 percentage point increase from 2022, according to the Korea Communications Commission. Among smartphone video content, short-form claimed the top spot at 41.8 percent.
Daily short-form viewers skewed young: 40.5 percent of teenagers, 34.7 percent of people in their 20s and 30.5 percent in their 30s.
It also unfolds as the country's web comic industry faces stagnating growth and setbacks overseas. Webtoon Entertainment, Naver Webtoon's US-listed parent company, reported operating losses of $125 million last year. Its stock was trading at $9.34 as of Tuesday, down from a post-initial public offering high of $26 following its June 2024 debut.
Major players have retreated from international markets, with NHN shuttering services in the United States, Britain and France, while Kakao pulled out of Europe, Indonesia, Taiwan and China.
Meanwhile, data shows readers continue to spend less time on webtoon apps. Naver Webtoon users logged an average of 426 minutes in June, down from 481 minutes in June 2024, according to local analytics firm MobileIndex. Kakao Webtoon fell from 153 to 129 minutes in the same period.
"It's fair to say that YouTube Shorts, TikTok and Instagram Reels are webtoons' biggest competitors," said a Korea Creative Content Agency official who requested anonymity. "They share similar service styles and reader approaches. As webtoon subscribers migrate to short-form, it's become a threat to industry growth."
Industry watchers see the move as strategic positioning — an attempt to lower barriers for new readers while adapting to the very content formats that are taking away their audience.
Webtoon companies pitch their new features as entry points to their original IP. A sprawling series with hundreds of episodes can intimidate newcomers, but a 40-second highlight reel might hook them.
"When we launched New & Hot in our North American platform in May, the goal was to lower the entry barrier for users," a Naver Webtoon official said. "Short-form gives people an easy way in, especially with long-running series that can feel overwhelming to dive into."
Then there's the cost-saving aspect. Creating derivative content from webtoons involves extensive manual work — from initial sketches to final coloring. Kakao claims its AI-powered Helix Shorts has slashed production time from three weeks to three hours and costs from $1,800 to $55 per video.
"By automating key stages of production, we're making short-form content more accessible and efficient — not just for us, but for creators as well," a Kakao Entertainment official said.
But creators and fans worry the push toward automation and viral clips undermines the medium's strengths. Many fear that AI-generated shorts could eventually replace human creators altogether.
"It's a slippery slope," said a staff member at a major webtoon production company who requested anonymity. "Creators are already using AI-assisted tools in studios for coloring, background work, things like that. You can't really fight technology, but I do worry about where this leads. If AI can pump out promotional content, what's stopping companies from using it to generate an entire series?"
Industry officials acknowledged the uncertainty but pointed to potential upsides.
"We'll have to see how the service evolves," a Naver Webtoon official said. "However, there's a lot of excitement among animation students and indie creators. Until now, they'd mostly been preparing for long-form work, but we hope this opens up a whole new creative avenue for them."