Courtesy of Ministry of Culture, Sports and Tourism
South Korea announced a series of strategic initiatives on Tuesday aimed at supporting the country's burgeoning content industry, which the government has identified as a key driver of future economic growth. Over the next five years, the government plans to inject 3.4 trillion won ($2.5 billion) into the sector, including 2.4 trillion won for the cultural account of the Fund of Funds and 1 trillion won for the K-Content and Media Strategic Fund, which is dedicated to large-scale content investments.
The new strategy, revealed after a meeting of the Content Industry Promotion Committee chaired by Prime Minister Han Duck-soo, includes significant reforms to open up policy funds to global capital. The government plans to expand the participation of overseas venture capital by allowing foreign firms to manage sub-funds of policy funds, which are currently restricted to domestic investments. At present, foreign investment accounts for only about 3 percent of the cultural account of the Fund of Funds.
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| ▲ Director Hwang Dong-hyuk and casts members of Netflix's "Squid Game" pose for photos during a press conference to celebrate their Emmy Awards, on Sept. 16, 2022 in Seoul / Courtesy of Ministry of Culture, Sports and Tourism |
The government aims to elevate South Korea’s content industry to be among the top four globally, following the United States, China, and Japan by 2027. According to the "2023 Foreign Contents Market Analysis" by the Korea Creative Content Agency, South Korea's content industry was the eighth largest in the world in 2021, with a market size of $68 billion.
The government’s goal is to double the content industry's export figures, targeting $25 billion by 2027, up from $13.24 billion in 2022. The content industry, which spans 11 sectors including publishing, music, games, broadcasting, film, and animation, has grown to surpass export figures of other key industries such as secondary batteries and electric vehicles.
Prime Minister Han noted the significant milestones achieved by the content industry, including record-high exports, sales figures, and major investment commitments from global companies like Netflix. However, he also acknowledged that many content companies continue to face financial challenges, hindering their ability to scale into medium-sized enterprises and raising concerns about potential growth stagnation.
The plan, part of a mid- and long-term master strategy for the content industry, will be updated every three years to ensure continued development and adaptation to changing market conditions.
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