Korean Studios Expand In-House Animation Push With Homegrown Webtoons

South Korean animation studios are expanding efforts to produce feature films based on homegrown webtoons, signaling a push to retain more production capability inside the country while continuing to use international partnerships where they make sense.

The shift builds on the global popularity of Korean digital comics, whose screen adaptations have often relied on production networks outside Korea. Solo Leveling, adapted from a Korean web novel and webtoon, became the most-watched series on animation streaming platform Crunchyroll through a multinational production involving a Japanese studio and Korean companies. That model combined Korean intellectual property with Japan’s established animation infrastructure.

Now, some Korean studios are pursuing end-to-end domestic production. Seoul-based Locus is producing Guardians of the Video Game, an animated feature adapted from Gasfard’s Naver Webtoon, entirely in Korea. The film is scheduled to open in theaters on Oct. 14. Locus previously made Exorcism Chronicles: The Beginning, based on a popular Korean occult novel, and has additional webtoon projects including Barkhan and Denma in its pipeline. It is also developing an animated adaptation of director Kim Tae-yong’s stage play Kokdu.

Studio N is pursuing another route with Your Letter, based on Cho Hyeon-ah’s webtoon. The film was presold to 166 countries, demonstrating how a locally developed story can secure international distribution before its broader release. Its reception also points to demand for Korean animation beyond action-driven franchises.

The domestic market remains difficult. Leafie, A Hen into the Wild, released in 2011, drew about 2.2 million admissions and remains the strongest-performing Korean animated film. Imported Japanese releases such as Suzume and Demon Slayer: Kimetsu no Yaiba — The Movie: The Infinity Castle have each surpassed 5 million admissions in Korea, underscoring the scale gap local productions still face.

Industry leaders view webtoon adaptations as a way to address that imbalance by beginning with stories and audiences that already exist. Kim Yun-ji, president of the Korea Creative Content Agency, said the domestic animation sector has been pressured by its longstanding focus on children’s content, a shrinking broadcast market and Korea’s declining population. She argued that studios need to expand toward adult-oriented works and build revenue models that connect animation with webtoons and merchandise.

The emerging strategy is not necessarily intended to replace international co-productions. Instead, it gives Korean studios another option: develop and produce projects locally when they have suitable intellectual property and technical capacity, while still collaborating overseas when global infrastructure offers an advantage. If upcoming releases perform well, the approach could help Korea capture more value from its webtoon exports and establish a broader production base for animated films.