Haeundae-gu, Busan, Republic of Korea,
The birth of KRW 1trillion funds for K-Contents
Ministry of Culture, Sports and Tourism announces Video Industry Jump-start Strategy, to promote domestic industry against Netflix’s dominance.
Culture Minister, Yu In-Chon announces Video Industry Jump-start Strategy (Image: Ministry of Culture, Sports and Tourism)
South Korean government introduced “Video Industry Jump-start Strategy” and pledge to raise 1 trillion KRW with “K-Contents Strategy Funds” to promote content production.
“K-Contents Strategy Fund” in public-private partnership, would provide unlimited investment to tackle the rise in video contents production cost, according to Minister of Culture, Sports, Tourism Yu In Chon in MODU Art Theater on November 14th.
The fund will initially raise 600 billion won next year and will reach 1 trillion won from 2024 to 2028. Ministry of Culture, Sports and Tourism will raise 45 billion won, with Ministry of Science and ICT raising 35 billion won and contents companies raising 120 billion won, which in total will create a master fund of 200 billion won, with the remainder being invested by the private sector. Additionally, expanding long-discussed tax incentives for contents production – maximum 30% based on SMEs, to promote private investment will be implemented, alongside with the inclusion of OTT subscription fee for cultural expenses tax deductions.
The fund strives for reinvigorating the domestic platform and securing intellectual property (IP). “The current system of global OTTs retaining the whole IP with no room for producers and content creators should be revised. Commitment would not be enough, but we are determined to revamp the situation.” Various other measures include the funds to promote releasing of films, compensation for creators, implementing international cooperation system and strengthened punishment for illegal distribution of content such as ‘Nunu TV’, and the expansion of virtual studios. The ministry aims for lifting the industry from 28 trillion won of 2021 to 40 trillion won until 2027, growing by 6.1% annually.
While the industry is still indifferent towards Minister Yu, the measures were received as significant, as Yu chose video industry for his first policy announcement with his proactive attitude to cover numerous current agenda in the film and video industry. Yet according to a business insider, voices of concerns criticized the policy as “commercial system and business owner-oriented policy”, “focused solely on short-term achievement with “five major award winning films including the Emmy Award and Academy Award in 5 years”, “widened discrepancy with bigger production being funded”
By Kim So-mi