Chinese capital propels S. Korean producers out of slump

By Park Sojung SEOUL, April 25 (Yonhap) -- A growing number of South Korean producers and Chinese sponsors are joining hands, a move that will lift South Korean entertainment out of a slump and provide thousands of Chinese TV networks with quality content. For many South Korean producers, viewership of shows at home is no longer the sole yardstick of their performance. In the case of "Running Man," an SBS variety show, viewership on April 17 was actually fairly low at 7.4 percent, almost half that of "Two Days One Night" on KBS 2TV. But "Running Man" producers are little concerned because a localized version has been a major hit in China. The show, which is on its second season there, has been watched by some 4 percent of the country's TV-watching population, with 2 percent viewership considered significant in a nation of 3,000 channels. TV advertising for the show, which airs on Zhejiang TV in the eastern Chinese province, also generated some 30 billion won (US$26 million), a scale unheard of in South Korea. The terrestrial network has not only made money by selling the game show's format, but it will also continue to take a fraction of what the Chinese network makes in line with the agreement the two sides made, according to SBS. Although the South Korean network denies rumors that "Running Man" accounted for more than half of its 2015 earnings, it acknowledges that the show comprised a "meaningful" proportion. "We're not some hole-in-the-wall business, so rumors that a single program generated half of our income is obviously an exaggeration," an SBS official said. "But it clearly made a meaningful amount of profit." "Descendants of the Sun" is another successful case of collaboration between South Korean producers and Chinese sponsors. Producers say the KBS 2TV series would not have been such a huge success if the Chinese video platform iQiyi had not footed 5 billion won for its production. Although the show, starring Song Joong-ki and Song Hye-kyo, left much to be desired, iQiyi's little-strings-attached payment allowed much room for experimentation, they argue. The military romance soap is far from done, too. Actor Song, who played Army Capt. Yoo Si-jin in the 16-part series, has yet to tour around China to capitalize on his status as a "national husband figure" there. Last Wednesday, he filmed a segment for the Chinese version of "Running Man," where he is rumored to get 200-300 million won per episode. He has also signed a three-year modeling contract for a Chinese cosmetics company for 6 billion won. Both of these figures are extremely rare in South Korea's industry. As such, China has become essential for the survival of South Korean producers. Huace Film & TV, a Chinese media group, recently became the second largest stockholder of NEW, a South Korean production company and creator of "Descendants of the Sun," by investing some 53.5 billion won. Suning Universal Media invested 40 billion won in Redrover, a South Korean animation production company, and 30 billion won in FNC Entertainment, an up-and-coming management agency. "I think Chinese investments in South Korea and a growing number of South Korean producers expanding their businesses abroad is a positive phenomenon," Yang Geun-hwan, head of South Korea's Keyeast Entertainment, said. "Right now, we are on the stage of figuring out how to create win-win situations for both sides." sojungpark@yna.co.kr (END)