Squid Game Increased Netflix’s Value by Almost $1 Billion While Its Creator Received Virtually Nothing

Squid Game creator Hwang Dong-hyuk has been candid about his creation, which was a smash hit for Netflix in 2021, didn’t make him rich. But it seems like it goes much deeper than that.

A new Los Angeles Times report details how Squid Game raised Netflix’s internal value by some $900 million. Hwang, however, forfeited all intellectual property rights and received no residuals. In short, Squid Game belongs to Netflix now.

What does that mean for Hwang? In a 2021 interview, he said that Squid Game made him enough to put food on the table on top of suddenly being famous, but he’s far from rich. Netflix, meanwhile, now has full control over one of the biggest franchises in the world.

Hwang spent a decade trying to sell his story, which was one reason he was so eager to sign a contract with the streaming giant. He was living with his mother and grandmother and at one point had to sell his $675 laptop to raise money. Netflix finally picked up the show, but in return Hwang forfeited all rights and royalties to what would become one of the streamer’s biggest shows ever.

‘I’m not getting anything out of it’

Hwang’s story was used to illustrate a broader trend in which Netflix has profited from Korean dramas while the creators make very little.

“At first it was exciting to think that people all around the world would be able to watch my shows,” a writer reportedly told the LA Times. “But now I’m thinking, ‘So what? I’m not getting anything out of it.”

According to the report, residuals are typically negotiated through the Korea Television and Radio Writers Association, but Netflix has no agreement with the group. Instead, writers typically receive their money up front, with rates starting at around $30,000 and going as high as $150,000. Shows can take between two to three years to create, but writers receive no more money in that time.

Netflix responded in a statement to the LA Times, “We pay fair, highly competitive rates with our K-Content creators and set clear standards for our Korean production partners, who produce all our shows and movies. These standards meet or exceed Korean law.”

Netflix also claimed that its investments in the Korean film industry have created employment for “thousands of people locally.”

One way or another, Squid Game continues to roll on. Earlier this week, Netflix revealed the new and returning cast for the show’s second season, with the controversial reality show set to launch in November. Season 2 will be “bigger in scale” and will thus take longer to complete than the first, actor Lee Jung-jae has said. Hwang is also returning to work on Season 2, which he teased back in 2022.

Squid Game Season 2 does not yet have a release date.

Kat Bailey is IGN’s News Director as well as co-host of Nintendo Voice Chat. Have a tip? Send her a DM at @the_katbot.