South Korea's Culture Minister Chae Hwi-young announced a major shift in government policy toward the cultural industry on Tuesday, proposing that the sector be viewed as an investment opportunity rather than simply an area requiring government assistance. Speaking during a parliamentary audit session by the National Assembly's Culture, Sports and Tourism Committee, Chae outlined ambitious plans to transform Korea's cultural exports into a massive economic engine.
"We must nurture culture as a future growth industry worth over 300 trillion won ($210 billion)," Chae declared during the hearing. This statement reflects the administration's bold vision to expand Korea's cultural market from an estimated 206 trillion won in 2023 to 300 trillion won by 2030, as outlined in earlier government plans.
Despite the international success of Korean culture, which has significantly elevated the country's global cultural standing, Minister Chae acknowledged that key sectors including film and gaming are showing concerning signs of stagnation. He emphasized the critical need for the industry to adapt to artificial intelligence transformation, reform outdated systems, and expand access to cultural data to maintain competitive momentum.
"K-culture is no longer just a source of pride," the minister explained. "It is a national strategic industry that drives Korea's future." This statement underscores the government's recognition of cultural exports as essential to the country's economic development strategy rather than merely a soft power tool.
Chae presented five key priorities that will guide the ministry's approach moving forward: bolstering the content industry, expanding global engagement, ensuring artistic freedom, revitalizing tourism, and promoting cultural equity across different regions and demographics. These priorities represent a comprehensive strategy to address both domestic and international challenges facing Korea's cultural sector.
To strengthen Korea's global cultural presence, the ministry plans to significantly expand its overseas infrastructure. "We plan to expand the number of integrated overseas export hubs, known as Korea Centers, to 30 locations worldwide to strengthen the foundation for content exports," Chae announced. Additionally, the government will foster collaboration among related ministries to strengthen industries connected to K-beauty, K-food, and K-fashion, creating a more integrated approach to cultural exports.
The minister detailed specific support measures for various cultural sectors, including efforts to support mid-budget films, revive game exports, and back emerging musicians through overseas showcases. In the tourism sector, the ministry has set an ambitious target of surpassing 30 million inbound visitors by 2030 through strategic visa relaxations, large-scale festivals, and region-specific content development.
During the parliamentary audit, Minister Chae faced significant criticism regarding oversight of entertainment agencies and pledged stronger regulatory measures in response. Democratic Party Representative Yang Moon-suk highlighted serious gaps in current oversight, citing the existence of 2,200 unregistered individual agencies and 4,500 corporate agencies operating without proper supervision.
"As we enter the era of 300 trillion won in K-culture, it would be a serious problem if agencies were allowed to operate loosely," Chae acknowledged. "We will implement measures to ensure unregistered agencies convert to official registration and fall under proper administrative supervision." This commitment represents a significant policy shift toward stricter industry regulation.
The minister also addressed concerns about excessive or violent behavior by celebrity bodyguards, responding to criticism from Democratic Party Representative Min Hyung-bae over reported cases of aggressive security practices. Chae vowed to strengthen regulations governing security personnel conduct, indicating the government's intention to address all aspects of entertainment industry oversight.
To address the critical shortage of K-pop venues, Minister Chae revealed that the ministry is actively working with the Seoul Metropolitan Government to utilize existing large-scale facilities more effectively. This includes making facilities such as the Seoul World Cup Stadium available more frequently for concerts and cultural events, addressing a significant infrastructure bottleneck in the entertainment industry.
A particularly complex issue emerged regarding copyright royalties for Korean music distributed in China. Representative Kim Jae-won of the Rebuilding Korea Party, a former singer himself, pointed out that while Korean music distributed in China is expected to generate significant royalties, creators are unable to collect them properly due to structural problems in the distribution system.
Kim called on the government to take active leadership in establishing a fair and transparent royalty distribution system rather than leaving this critical issue solely to private sector resolution. His reference witness, Lee Si-ha of the Korea Music Copyright Association, provided shocking testimony about widespread copyright fee collection irregularities.
Lee testified that during a recent meeting with more than 100 composers and Chinese tech giant Tencent, he discovered that many intermediary agencies were unlawfully collecting copyright fees. "We had thought that Korean composers weren't receiving royalties because Chinese music platforms weren't paying usage fees," Lee explained. "But in fact, companies like Tencent had already been paying royalties and it was the uncontracted Korean publishers who were collecting them instead."
The testimony revealed a complex web of unauthorized intermediaries profiting from Korean intellectual property. "Securing royalties for Korean music copyrights in China has been a long-held wish of our composers for more than 20 years," Lee told lawmakers. "Since it's something we must achieve, I hope every effort will be made to make it happen."
In response to these revelations, Minister Chae vowed to launch an immediate investigation into intermediary agencies, signaling the government's commitment to protecting Korean creators' intellectual property rights in international markets. Lawmakers also specifically urged Naver Webtoon to improve creator protection systems and ensure fair compensation within the platform's ecosystem, highlighting ongoing concerns about digital content creator welfare.
These comprehensive policy announcements and regulatory commitments represent a significant evolution in South Korea's approach to its cultural industries, moving from a support-based model to an investment-focused strategy while simultaneously strengthening oversight and creator protection measures.
