Korea's screen content industry enters 2026 in a state of sober self-reflection. In Cine21's annual entertainment industry outlook survey—now in its sixth year—51 leaders from investment, distribution, production, and talent management companies have delivered a candid collective diagnosis: years of deepening recession have pushed the ecosystem to a structural turning point .
Against that backdrop, the survey maps out four defining trends for the year ahead, alongside the titles and talents the industry is watching most closely.

KEYWORD 01: Short-Form, Targeting a More Defined Audience

For the third consecutive year, short-form content remains an inescapable keyword in Korea's entertainment landscape. What began as a social media phenomenon has evolved into a sophisticated market with specialized streaming platforms targeting increasingly specific audiences .

In January alone, Takeone Company launched KITZ, a platform offering premium short-form content combined with K-pop artists, debuting the short drama Wind-Up starring NCT's Jeno and Jaemin. Lezhin Entertainment introduced its short-form drama platform Lezhin Snack, specializing in BL and GL content, while Korean startup SERO launched a vertical short-form platform compressing classic films into 30-minute formats .

Major players are taking notice. Showbox has entered the short-form drama market for the first time this year, signing business agreements with Dramabox and Vigloo to establish distribution infrastructure. Their upcoming titles include Bridal Shower: The Missing Bride and My Favorite Has-Been Star Returns with a Ghost, both featuring former idol actors .

KT is expanding internationally through a partnership with Southeast Asia's largest OTT platform Viu, supplying high-quality micro-dramas for Viu's newly launched vertical short-form section Viu Shorts. KT Studio Genie CEO Jung Keun-wook framed this as part of a broader strategy to build an "Asia-centered short-form value chain" .

Industry leaders predict that short-form will "settle into the content industry faster than expected" due to changing consumption patterns, with content increasingly tailored to individual tastes rather than mass trends .

KEYWORD 02: AI, From Controversy to Creative Partner

After years of debate over job displacement and the devaluation of creative work, Korean entertainment leaders are now broadly accepting AI as an unstoppable force—and increasingly, a welcome one.

Survey respondents unanimously agreed that "AI-supported feature films will help rather than threaten the content industry" . While acknowledging concerns about creative professionals facing employment challenges, leaders emphasized that "the person responsible for the final result is not AI but humans, and the authority to decide which AI technology to adopt remains with directors who repeatedly revise and decide" .

Practical applications are already widespread:
VFX, sound mixing, and color correction increasingly rely on AI tools
Script review, world-building organization, and setting verification now incorporate AI during early planning stages
Investment decisions benefit from AI-powered case review, reference organization, and trend analysis, reducing routine work and improving efficiency
Budget pressures are driving adoption. "For heavy VFX shots requiring large-scale, high-difficulty visual effects, production costs rise significantly," one production executive noted. "Using AI allows us to reduce costs while improving quality" . This applies equally to big-budget blockbusters and independent films starved for resources.

However, respondents consistently added a caveat: "AI is used as a tool to assist thinking rather than replace creation, and narrative design or direction judgments remain the creator's responsibility" .

Production company Moving Pictures Company, co-producer of Disney+'s Light Shop, recently signed a strategic MOU with AI video innovation company Maccai, targeting practical technological integration on production floors. The collaboration begins with the BL youth fantasy romance Always Meet Again, scheduled for March .

KEYWORD 03: OTT Consolidation, Navigating the Shifting Landscape

2025 brought seismic shifts to the streaming world. Netflix is proceeding with its acquisition of Warner Bros., domestic platforms Tving and Wavve are discussing merger, and Watcha is pursuing management rights sale amid rehabilitation proceedings .

The survey reveals deep concerns about this consolidation. Leaders worry about prolonged imbalance between global giants and local platforms, with an invisible hierarchy making it difficult to reverse the current playing field .

Netflix concentration has already created bottlenecks: "With limited platforms, the Netflix concentration phenomenon is intensifying, causing productions prepared by production companies to fail to secure scheduling" . Market polarization threatens smaller production houses' survival, while increased reliance on cost-effective entertainment programming reduces film and drama production volume, potentially diminishing overall diversity .

"When OTT platforms merge or disappear, production companies must expect investment from only a small number of platforms," one leader warned. "Production conditions deteriorate accordingly. As the number of platforms decreases, options shrink and capital becomes more conservative" .

Experts argue that Korea must use Korean content's global profile as a springboard to expand international co-productions, offering stronger incentives for small and midsize producers and encouraging partnerships with overseas creators and investors .

KEYWORD 04: International Co-Productions, From Export to System Transplantation

The fourth trend represents the industry's primary breakthrough strategy: moving beyond simple content export toward international co-productions and "system transplantation."

The K-drama industry has entered an era of "Global Studio 2.0," combining system transplantation, IP acquisition, and technological innovation . Rather than merely selling finished works, Korean companies are now exporting their planning and production systems overseas.

CJ ENM has built a production network connecting Studio Dragon, Fifth Season, and Studio Dragon Japan, establishing a local subsidiary in Riyadh, Saudi Arabia, taking charge of Middle East production and distribution. Fifth Season has entered stable growth and begun generating operating profit .

SLL's U.S. subsidiary Wiip reduced post-production variables by introducing a virtual production system, shortening production time by more than 20% . Kakao Entertainment is implementing a "super IP crossover" strategy combining webtoons and production companies, with Solo Leveling successfully converting webtoon fandom into video viewership .

The structural issue symbolized by Squid Game—where production companies received no additional revenue despite global success—is driving change. Production companies tied to "cost-plus" contracts handing over IP for only 10-20% margins are now pursuing direct or co-ownership of IP .

According to Export-Import Bank of Korea analysis, if a company holds more than 50% of IP shares, operating profit margins can rise to mid-double digits . Showbox improved profitability by 96 percentage points by shifting to an IP investment business, while CJ ENM's Queen of Tears secured indirect export routes to the Middle East and South America through a Turkish remake contract .

Technological innovation supports this shift. Historical drama Queen's Song of Praise combined virtual production and AI, reducing costs by more than 20% and production time by over 30% compared to traditional methods .

The Middle East and South America have emerged as next-generation growth markets. Saudi Arabia and the UAE have positioned K-content as a key partner, with MBC Group achieving localization success producing an Arabic version of Mother . In Latin America, 19% of Brazilian internet users express interest in Korean dramas .

The Korea Creative Content Agency plans to open business centers in Brazil and Spain in 2025, expanding global bases to 30. The government has set the 2026 content industry budget at 705 billion KRW, an 8.2% increase, with R&D budget increased by 45.4 billion KRW to support technological innovation . The goal: becoming one of the "global top 5 cultural powerhouses" by 2030 .

Industry's Most Anticipated Titles and Talents
Beyond the four trends, the survey also identified the films, dramas, and performers generating the strongest industry buzz for 2026.

Most Anticipated Films:
Hope (Director Na Hong-jin, starring Hwang Jung-min and Zo In-sung)
Possible Love (Director Lee Chang-dong, starring Jeon Do-yeon, Sul Kyung-gu, Zo In-sung, and Jo Yeo-jeong)
Humint (Director Ryoo Seung-wan, starring Zo In-sung, Park Jung-min, and Shin Se-kyung)
The Assassins (Director Hur Jin-ho, starring Yoo Hae-jin, Park Hae-il, and Lee Min-ho)
Colony (Director Yeon Sang-ho, starring Jun Ji-hyun, Koo Kyo-hwan, and Ji Chang-wook)
Most Anticipated Dramas:
Worthless Struggle (Koo Kyo-hwan, Go Yoon-jung)
21st Century Grand Duchess (IU, Byeon Woo-seok)
Slowly, Intensely (Song Hye-kyo, Gong Yoo)
Scandal (Son Ye-jin, Ji Chang-wook)
The Remarried Empress (Shin Min-a, Ju Ji-hoon, Lee Jong-suk, Lee Se-young)
Industry's Most Anticipated Actors (Male):
Koo Kyo-hwan
Park Jung-min, Zo In-sung
Kim Sun-ho
Hyun Bin
Industry's Most Anticipated Actresses (Female):
Go Yoon-jung
IU
Park Ji-hyun
Kim Go-eun, Kim Hye-yoon
Rising Stars to Watch:
Male Newcomers: Park Ji-hoon, Kim Jae-won, Lee Chae-min
Female Newcomers: Soo-bin, Bang Hyo-rin, Won Ji-an, Shin Si-ah, Lee Jae-in

A Turning Point
The survey paints a picture of an industry at a crossroads. Years of recession have exposed structural vulnerabilities, but the four identified trends—short-form expansion, AI integration, strategic adaptation to OTT consolidation, and aggressive pursuit of international co-productions—represent a roadmap forward.
As one leader summarized: "The key question is whether policy funding and industry innovation can translate into diversity and sustainability in the production environment" . With government support, technological adoption, and global partnerships accelerating, 2026 may prove the year Korean entertainment transforms crisis into opportunity.