Korea’s Future in the Streaming Wars: The Korean Government’s Plans to Fuel Content Growth
By Chris Weatherspoon
It’s no wonder the world can't get enough of Korean content. For decades, the Korean government has been pumping money into cultural soft power and Hallyu (the Korean wave), and now we see the results with Oscar-winning films like <Parasite> and global streaming sensations like <Squid Game> and <The Glory>. Korean dramas, films, and variety shows are mesmerizing audiences worldwide. However, behind the scenes, Korea’s domestic media sector – including broadcasters, cable companies, production companies, and newspapers – has been facing challenges as it tries to adapt to a rapidly evolving landscape.
Taking Action
In 2023, the Korean government formed the Media and Contents Industry Convergence Development Committee [미디어·콘텐츠산업융합발전위원회가 전체회]. Chaired by Prime Minister HAN Duck-soo and composed of government officials and industry experts, this committee aimed to address the challenges facing the media industry. The end result was a comprehensive plan and roadmap for the future that officials hope will keep Korean content globally competitive as streaming platforms continue to make the world smaller.
Here is a breakdown of the key challenges the industry faces and how the committee plans to address them.
The Challenges
Money Problems: The industry faces financial difficulties due to high production costs and limited funding sources. This is especially true for ambitious, large-scale projects that require big budgets.
Outdated Rules: Current regulations hurt innovation and global competitiveness. They also don’t account for the new technology and business models that are transforming the media industry.
Lack of Global Competitiveness: The Korean content industry needs help to remain competitive and to increase its reach and influence.
An Uneven Playing Field: Smaller production companies are an important part of Korea’s content pipeline, however, they face unfair practices from larger players.
Need for Increased Content Production: Global demand for Korean content is high and domestic production companies need help to increase output to meet these demands.
Solutions
Financial Support: The Korean government plans to establish a 1 trillion won K-content and media strategy fund to support large-scale content production and IP utilization. Additionally, the plan calls for increased tax breaks that will help encourage the creation of even more high-quality Korean content.
Regulatory Innovation: The government aims to abolish outdated rules and simplify broadcasting regulations. The committee is especially interested in ways to relax regulations on advertising and sponsorships while simultaneously strengthening fairness in advertising sales.
Global Expansion: The government will support the global expansion of domestic streaming platforms and create a K-media and content dedicated channel on smart TVs.
Technological Advancement: The government will promote the adoption of AI and other advanced technologies, such as virtual studios, in content planning, production, and distribution.
Local Talent Development: The government will foster 10,000 creative professionals to support industry growth.
What Does This Mean for You?
These policies offer both exciting opportunities and potential challenges for foreign companies hoping to work with the Korean media industry.
The Good: Opening to the World The policies' emphasis on global expansion shows a desire to reach new markets. Korean media producers will be looking for ways to distribute their content worldwide, so foreign streaming platforms and production companies with established distribution networks have an opportunity to profit.
The Great: The Money is Flowing The establishment of a healthy media fund and increased tax incentives signal a strong commitment to boosting content production. International partners looking to create compelling, high-quality, ambitious projects, while simultaneously decreasing their financial liabilities, should definitely take note.
The Bad: Streaming Red Tape? While the committee seems to favor deregulation, there was brief mention of creating a disciplinary system for streaming platforms. The idea wasn't discussed in detail but will surely be addressed after further research is conducted. Whether these new regulations are simply a way to protect the consumer, or a way to protect the domestic market, is yet to be seen.
The upcoming policy changes present exciting possibilities for both Korean media companies and international ones. If you would like to learn more or need help navigating the Korean production industry feel free to reach out to us at Breakthrough Now Media!