[비즈한국] “The meat isn't cooked evenly.” Although 2024 is not yet over, many would likely cite this remark made by Chef Anh Sung-jae while judging on the Netflix variety show ‘Culinary Class Wars’ as this year’s top catchphrase. A ‘Culinary Class Wars’ frenzy has swept the nation, with restaurant lists of the show’s participating chefs circulating online to the point where scalped reservations have even appeared. The craze is so intense that not only are these restaurants gaining massive popularity, but the retail and food industries are also launching collaboration products related to the chefs.
Since Netflix released the show on the 17th of last month, it has maintained the No. 1 spot in Korea, and it has reached the Top 10 in a total of 18 countries, including ranking first in four countries such as Hong Kong, Singapore, and Taiwan.
However, Netflix was once again under fire regarding tax issues during this year's National Assembly audit. On the 8th, during the Ministry of Science and ICT's audit by the National Assembly's Science, ICT, Broadcasting, and Communications Committee, Democratic Party lawmaker Han Min-soo pointed out, "Netflix's cost of revenue ratio exceeded 70% in 2019 and over 87% in 2022," adding, "Last year, it recorded over 800 billion won in domestic revenue, but paid only 3.6 billion won in corporate tax." Netflix’s Korean subsidiary reported 696 billion won as cost of revenue last year. While the 664.4 billion won sent to its U.S. headquarters as 'payment for subscription membership' accounted for 81% of total revenue, the corporate tax paid in Korea was only 3.6 billion won, which is about 0.4% of its revenue.
Apart from the profits earned domestically and abroad from the success of K-content, Netflix is scheduled to announce its earnings in the U.S. stock market on the 17th. Experts expect the company to record $9.77 billion in revenue and $5.16 in earnings per share. This represents a growth of approximately 40% compared to the previous year. Netflix's stock price has risen nearly 50% this year and is currently on a rally. With growing expectations for improved performance next year following this year, it appears the company will continue its growth trend regardless of the tax controversy in Korea.
Another figure who became a hot topic on ‘Culinary Class Wars’ is Baek Jong-won, CEO of The Born Korea. Even while blindfolded, he correctly identified dish names and ingredients by taste and smell alone, which served as an opportunity to prove his expertise once again. One of the big-name IPOs attracting investor interest this week is none other than ‘The Born Korea.’ The company plans to conduct demand forecasting from the 18th to the 24th and finalize its offering price on the 25th. The target price range is 23,000 to 28,000 won, with the goal of raising up to 84 billion won. While there are predictions that the IPO will be a success thanks to CEO Baek’s popularity, some analysts suggest it remains to be seen whether the company can maintain its growth trend after entering the stock market.
The Born Korea’s revenue is on an upward trend. It grew from 194.1 billion won in 2021 to 410.6 billion won last year, while operating profit and net profit steadily increased from 19.5 billion won and 11.6 billion won in 2021 to 25.6 billion won and 20.9 billion won, respectively, last year.
In its securities registration statement, The Born Korea identified factors such as shrinking consumer sentiment and the growth potential of the restaurant franchise market as key investment risks. It also mentioned risks related to new business ventures and overseas expansion. The Born Korea plans to enter the B2B distribution market and launch its own online mall as new business areas, and it currently operates 149 stores across 14 countries, including the U.S. and Japan. The prolonged dispute with Yondon Bolkatsu franchisees is also a variable. The Born Korea stated, "We cannot rule out the possibility of civil litigation depending on the results of the Fair Trade Commission's investigation and deliberations," adding, "We cannot exclude the possibility of further disputes arising with other franchisees in the future."
The excessive reliance on CEO Baek is also a factor of concern in the market. The Born Korea remarked, "We are reducing our reliance on CEO Baek by strengthening our competitiveness in the franchise and distribution sectors based on our R&D capabilities, but in the event of his absence due to illness, accident, etc., it could temporarily lead to a decline in brand value and negatively affect profitability and growth."