Implementation of Emergency Support Measures for the Film Industry Including 90% Reduction of Film Fund Levy
On the 22nd, when the government strongly urged 'social distancing' to overcome COVID-19, a movie theater in Yeongdeungpo-gu, Seoul was quiet. Photo by Mun Ho-nam munonam@
[Asia Economy Reporter Lee Jong-gil] The government will invest 17 billion KRW in the film industry, which has been contracted due to the spread of the novel coronavirus infection (COVID-19). The Ministry of Culture, Sports and Tourism disclosed the detailed contents of the emergency support measures for the film industry damage announced at the 3rd Crisis Management Meeting on the 1st on the 21st.
The Ministry of Culture, Sports and Tourism secured 17 billion KRW by modifying the Film Development Fund. The largest amount, 9 billion KRW, will be used for issuing discount coupons and promotion/marketing. A total of 1.3 million discount coupons worth 6,000 KRW each (approximately 7.8 billion KRW) will be provided to viewers. Detailed plans will be announced through the Korean Film Council in early next month. About 200 movie theaters nationwide will receive 3 billion KRW to support the hosting of special screenings featuring various films. However, large corporation-owned direct theaters and government or local government theaters are excluded from the target.
For Korean films whose production or release has been delayed due to the spread of COVID-19, part of the production or release costs will be provided. The support amount is 2.1 billion KRW each. Up to 100 million KRW per work can be received. An additional 800 million KRW will be invested in vocational training support projects. About 700 film industry workers in short-term unemployment will be assisted.
The Ministry of Culture, Sports and Tourism will also reduce the Film Development Fund levy by 90% to ease the burden on movie theater operators. Movie theaters have paid 3% of ticket prices as the Film Development Fund levy until January. With this measure, for levies incurred between February and December, only 0.3% of the ticket price needs to be paid.
A Ministry of Culture, Sports and Tourism official said, “The reduction of the levy will be finalized after review by the Ministry of Strategy and Finance’s Burden Management Committee and revision of the Enforcement Decree of the Act on the Promotion of Films and Video.” He added, “Movie theater operators can defer payment of the Film Development Fund levy without additional late fees until the end of this year. The 0.3% levy can also be paid in a lump sum by the end of this year.”
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