[TV Program] Ministry of Culture, Sports and Tourism to Invest 650 Billion won in Content Industry Including Films and Games over 3 Years
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The government will invest 650 billion won until 2012 in the content industry including films, performances and games as part of an effort to promote investments in cultural content.
The Ministry of Culture, Sports and Tourism pledged on January 21 that they would invest 100 billion won and 38.7 billion won in fund of funds and film production fund, respectably by 2012. The ministry has invested 261.7 billion won in the two funds until recently.
The newly pledged funds amount to approximately 300 billion won. The ministry plans to invest these funds into the content industry such as dramas, computer graphics, films, games and animation.
The funds have already recorded 30% in profit margin by investing 7.4 billion won in the film "Haeundae". Also, the musical Jekyll and Hyde earned a 29% profit margin with 700 million won investment from the fund of funds.
However, drama producers who have received sanctions or recommendations from the Korea Communications Standards Commission are excluded from funding for a specified period of time.
The ministry said, "We will enhance the self-funding capacity of producers by allowing content companies to receive loans without securities through a project-based evaluation".
Producers will be able to get a loan up to 3 billion won per project. Furthermore, the ministry and Korea Eximbank will invest 20 billion won over 3 years in Korea Technology Guarantee Fund in the form of matching grants. This will improve endorsement effect to 150 billion won.
The ministry said, "We will introduce new loan guarantee policies that provide loans and guarantees for film production companies and their joint projects in the global market".
The Korean Film Council and guarantee institution will derive 200 billion won in endorsement effect through matching accounts worth 20 billion won over 2 years. This figure is equivalent to 80% of Korean film production cost which recorded 240.6 billion won in 2009.
The ministry said, "We hope to invest 650 billion won by 2012 by developing a financial investment system for the fund of funds, film production fund and loan guarantees. This will create 10,000 new jobs in the field of films and dramas".
Minister Yu In-chon said, "The content industry saw a 4.2% increase with 68 trillion won in sales compared to last year. Exports, including $1.5 billion in games, recorded $3 billion, a 25.6% increase from last year. Korea will emerge as one of the top 5 content industries with government investments".
Source: Financial News
The Ministry of Culture, Sports and Tourism pledged on January 21 that they would invest 100 billion won and 38.7 billion won in fund of funds and film production fund, respectably by 2012. The ministry has invested 261.7 billion won in the two funds until recently.
The newly pledged funds amount to approximately 300 billion won. The ministry plans to invest these funds into the content industry such as dramas, computer graphics, films, games and animation.
The funds have already recorded 30% in profit margin by investing 7.4 billion won in the film "Haeundae". Also, the musical Jekyll and Hyde earned a 29% profit margin with 700 million won investment from the fund of funds.
However, drama producers who have received sanctions or recommendations from the Korea Communications Standards Commission are excluded from funding for a specified period of time.
The ministry said, "We will enhance the self-funding capacity of producers by allowing content companies to receive loans without securities through a project-based evaluation".
Producers will be able to get a loan up to 3 billion won per project. Furthermore, the ministry and Korea Eximbank will invest 20 billion won over 3 years in Korea Technology Guarantee Fund in the form of matching grants. This will improve endorsement effect to 150 billion won.
The ministry said, "We will introduce new loan guarantee policies that provide loans and guarantees for film production companies and their joint projects in the global market".
The Korean Film Council and guarantee institution will derive 200 billion won in endorsement effect through matching accounts worth 20 billion won over 2 years. This figure is equivalent to 80% of Korean film production cost which recorded 240.6 billion won in 2009.
The ministry said, "We hope to invest 650 billion won by 2012 by developing a financial investment system for the fund of funds, film production fund and loan guarantees. This will create 10,000 new jobs in the field of films and dramas".
Minister Yu In-chon said, "The content industry saw a 4.2% increase with 68 trillion won in sales compared to last year. Exports, including $1.5 billion in games, recorded $3 billion, a 25.6% increase from last year. Korea will emerge as one of the top 5 content industries with government investments".
Source: Financial News
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