South Korea's Ministry of Culture, Sports and Tourism announced a massive budget increase of more than 80 percent for the local film industry next year, bringing the total allocation to 149 billion won ($107 million). This dramatic funding boost represents a significant effort to revitalize the country's struggling movie sector, which has been facing unprecedented challenges in recent years.
The new budget allocation of 149 billion won marks a substantial jump from this year's 82.9 billion won and represents the second-highest budget ever designated for the film industry. The only time funding exceeded this amount was during the special budget allocation in 2022, when the government provided emergency support to help the entertainment sector survive the COVID-19 pandemic.
Culture Minister Chae Hwi-young highlighted the dire situation facing the industry during a press conference held on Thursday, painting a stark picture of the current crisis. According to the minister's assessment, fewer than 20 films with production budgets exceeding 3 billion won are expected to be produced in the country this year. This figure represents a dramatic decline from typical years, when approximately 100 films of similar budget scale would normally be produced.
The minister attributed this sharp decline to a combination of factors creating a destructive cycle within the industry. An investment drought has severely limited funding opportunities for filmmakers, while declining moviegoer numbers have made investors increasingly reluctant to finance new projects. "Investment has stopped, and the film production scene has run out of money," Chae explained during the press conference. "The ecosystem of the film industry is collapsing to the point where filmmakers can't make a living."
The substantial budget increase will be strategically distributed across several key areas to maximize its impact on industry recovery. The funding will support independent and medium-sized films, which have been particularly hard hit by the current crisis. Additionally, resources will be allocated to artificial intelligence movies, reflecting the government's commitment to embracing technological innovation in filmmaking. The budget will also fund the construction of a new virtual production studio in Busan, which is expected to attract both domestic and international productions.
In addition to direct funding support, the ministry has announced plans to inject 70 billion won into creating a 140 billion-won investment fund. This fund will serve as seed money for film investment, providing a foundation for private investors to participate in financing new movie projects. The fund is designed to help break the current investment drought by reducing risk for private investors and encouraging renewed participation in the film industry financing ecosystem.
