Korean gov't to create 1 trillion won fund for local media

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Korean gov't to create 1 trillion won fund for local media

Published: 13 Mar. 2024, 17:01

LEE JAE-LIM
lee.jaelim@joongang.co.kr

Prime Minister Han Duck-soo, in the middle, announces a list of incentives that will be given to local content industry to propel growth in the sector at the governmental complex in central Seoul on Wednesday. [YONHAP]

The Korean government will create a 1 trillion won ($760.6 million) fund jointly with private sectors over the next five years to back the local content industry to create more megahit series such as Netflix’s “Squid Game” and “The Glory.”

A total of 1.02 trillion won will be injected into the local industry until 2028 for large-scale content production and adaptation of popular intellectual properties (IPs).

The fund is part of multiple incentives that were outlined by the Office for Government Policy Coordination on Wednesday.

“Media and content industry is experiencing a radical paradigm shift centered around global companies,” the government office said in a statement. “While Korean content has reached a level of prowess that resonates globally, the industry growth has either been stalled or posting losses due to heightened competition in the entertainment industry including streaming and broadcasts.”

Through the fund, the government aims to bolster industry efforts in IP adaptation so that local production studios can acquire needed investments to turn a popular IP into other forms of content without having to hand over copyrights to global streaming platforms.

Local production companies, ranging from small-and-mid-sized enterprises (SMEs) to major studios, will qualify for a tax reduction rate of up to 30 percent if proven that more than 80 percent of the production fee was domestically spent.

Other incentives for local broadcasters and cable channels include extending the duration of broadcast licenses from five to seven years and relaxing the standards for broadcast advertisement.

“This policy proposal, developed collaboratively by private sector experts from the media and content industry, academia, and relevant government ministries, represents a comprehensive strategy,” said Prime Minister Han Duck-soo. “It is meaningful in the sense that it encompasses key policy directions that individual ministries find challenging to pursue independently despite long-standing demands from the field.”

The move comes from a committee established by the Office for Government Policy Coordination last April to propel the growth of the content sector and is co-developed by Ministry of Science and ICT, Ministry of Culture, Sports and Tourism and the Korea Communications Commission.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]