Webtoon Entertainment: Navigating Currency Waves

Webtoon Entertainment, a major player in the digital comic scene, is feeling the heat from currency fluctuations. The company, which went public in New York last year, is seeing its profits take a hit due to the weakening Korean won. This is a big deal because Webtoon reports its earnings in U. S. dollars, but most of its revenue comes from Korea and Japan. The company's shares are mostly owned by Naver, a big Korean internet company, and LY Corp. , a team-up between Naver and SoftBank. With 88% of its sales coming from Korea and Japan, Webtoon is heavily reliant on the performance of these two markets. The weakening won means that when Webtoon converts its earnings to dollars, it ends up with less than expected.In the third quarter, Webtoon's sales were $378. 04 million. But if the won hadn't weakened, that number would have been even higher. The situation is expected to get worse in the fourth quarter, with the won continuing to drop against the dollar. The exchange rate even hit levels not seen since the Great Recession. It's not just the won that's causing problems. The yen has also weakened against the dollar, adding to Webtoon's currency woes. Even without these currency issues, Webtoon is expecting a drop in sales due to year-end expenses like severance costs and payments to cartoonists. Despite these challenges, Webtoon is making moves to expand globally. The company is working with big names like Disney and Warner Bros. to grow its presence in the worldwide storytelling market. It's a tough time for Webtoon, but the company is looking to bounce back and make its mark on the global stage.