As the global competitiveness of K-content, including films, dramas, and performances, rises, the financial sector is increasingly recognized as a vital supporter. IBK Industrial Bank and the Credit Guarantee Fund have successfully invested in the films "The King’s Affection" and "Goonche," achieving back-to-back successes.
According to the Korean Film Council's integrated ticketing system, "Goonche" has recorded a cumulative audience of 5.52 million. It is one of only two films released this year to surpass 5 million viewers, alongside "The King’s Affection," which has attracted 16.9 million viewers.
The recent resurgence of theater attendance post-COVID-19 has also highlighted the achievements of investors. IBK, often referred to as a financial institution with a "Midas touch," invested 1 billion won in both "The King’s Affection" and "Goonche," reaffirming its ability to select successful projects. The bank is already well-known for investing in 12 out of 25 domestic films that have attracted over 10 million viewers.
Less recognized but equally significant, the Credit Guarantee Fund has consistently invested in K-content. It invested 300 million won in "The King’s Affection" and 500 million won in "Goonche," demonstrating its strong project selection capabilities. The fact that a public institution is investing in relatively high-risk cultural content and achieving consecutive box office successes is considered noteworthy.
This is not the first time the Credit Guarantee Fund has supported cultural content. It has previously provided financial backing for popular domestic films such as "Hansan" and "The Drug King." Recently, it has expanded its support to include small-scale musicals and independent films like "Seopyeonje" and "Yumi's Cells."
While IBK primarily supports the content industry through direct investments, the Credit Guarantee Fund combines investments with guarantees to assist K-content companies in securing funding. It provides guarantees funded by special bank contributions and offers 100% guarantees and preferential interest rates for guaranteed loans to outstanding content companies for three years.
Many content companies are small and often struggle to secure loans from financial institutions. When the Credit Guarantee Fund provides guarantees, it can facilitate smoother funding. Unlike manufacturing, content companies face challenges in obtaining financial support due to the difficulty in objectively assessing intangible values such as artistic quality and commercial potential.
A financial sector representative stated, "The content industry can have a significant ripple effect if successful, but securing funding is often the biggest hurdle during the initial production phase. Since K-content is a national policy priority, investments and guarantees from policy financial institutions can serve as a catalyst for attracting private funding."
* This article has been translated by AI.
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