The South Korean government is significantly increasing support for K-content, including film, OTT, and gaming, to cultivate the K-culture industry as a new engine for economic growth. The initiative aims to develop major intellectual properties (IPs) dubbed 'golden eggs.' This includes expanding production cost support for OTT platforms and enhancing international co-productions to secure domestic IPs while accelerating the development of major games targeting the global market.
The Ministry of Culture, Sports and Tourism presented these plans in a business report on August 5. The core objective is to focus on K-culture, sports, and tourism as national growth drivers, aiming to elevate South Korea to the status of an 'irreplaceable cultural powerhouse.'
Minister of Culture, Sports and Tourism Choi Hwi-young stated during the report at the Blue House, "We will accelerate the rapid growth of K-culture." He announced plans to expand financial support, including loans, guarantees, and funds totaling 1.5 trillion won this year, and to strengthen strategic investments centered on global major IPs.
This report emphasizes securing content IPs. The growth of Hallyu (Korean Wave) content is expected to drive exports in related industries such as beauty, food, and tourism, thereby maximizing growth effects by enhancing the competitiveness of K-content.
President Lee Jae-myung also remarked, "Culture will establish itself as an industry," noting that while K-pop is a visible example, more nuanced support for the arts and culture sector is necessary.
To improve the current structure where domestic content IPs are transferred to overseas OTT platforms, the government plans to expand production cost support for OTT content, encouraging domestic producers to secure IPs as a condition for assistance. This strategy aims to empower domestic producers in negotiations with global platforms and establish a stable revenue base through IP acquisition in the long term.
Kim Young-soo, Vice Minister of Culture, emphasized in a pre-briefing that the current structure, which allows valuable content IP to be handed over to large overseas platforms for minimal returns, could have dire long-term consequences. He reiterated that OTT production cost support would be contingent on securing IPs. Additionally, the government will support the overseas expansion of domestic OTT platforms and improve the quality of localization, dubbing, and subtitles for global distribution.
Support for the film industry will also be enhanced. The government plans to increase production support for films and expand international co-productions to broaden the foundation for overseas market entry. In September, South Korea will co-host the 'Lumiere Summit' in France, bringing together global film industry stakeholders to support the international expansion of Korean cinema.
A decision on the holdback system, which establishes a waiting period between theatrical releases and OTT availability, is expected by the end of this month. The final plan will be determined after gathering industry opinions, with ongoing discussions to improve the system. In response to the financial difficulties faced by Megabox, which has entered a rehabilitation process, the government will provide operational funds to theaters, investors, and distributors to prevent negative impacts on the overall film industry.
Support for developing globally competitive major games will also be prioritized. The government plans to shift its focus from supporting small and mobile games to providing up to 6 billion won per game to discover major IPs with global competitiveness.
The government will also enhance performance infrastructure. Next year, it will host a large cultural event called 'Phenomenon' that encompasses K-pop, food, and beauty, while accelerating the construction of a multi-purpose dome stadium to accommodate the growing demand for K-pop performances. Plans are also underway to consider building additional mid-sized arena venues.
Furthermore, the government aims to promote innovation in sports through the K-Football Innovation Committee and expand support for grassroots arts and indie content to strengthen the creative foundation for artists. In response to the AI era, the government will support the use of AI in creative fields and establish learning data, along with preparing a standard contract for AI learning data soon.
President Lee Jae-myung suggested considering a public budget application process for the arts and sports sectors, stating, "In the arts and culture sector, there are clear limits to how much providers can brainstorm budget allocations. I hope the process involves weighing priorities and making selections based on importance."
* This article has been translated by AI.
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