Government to Establish OTT Global Awards and Tax Credits
Promotes Easing of Equity Investment and Product Placement Regulations
Supports Metaverse and Creator Ecosystem
Announces 'Digital Media and Content Industry Innovation and Global Strategy'
[Asia Economy Reporter Minyoung Cha] The government plans to create a global OTT awards ceremony and expand tax incentives such as tax credits next year to boost domestic online video services (OTT). Along with establishing government funds to open investment channels, it will simultaneously ease investment restrictions and product placement regulations to encourage active investment from the industry.
On the 18th, the Ministry of Science and ICT announced the 'Digital Media and Content Industry Innovation and Global Strategy,' focusing on three main pillars: domestic OTT, metaverse (extended virtual world), and creator media. This is part of follow-up measures to realize the national agenda of becoming a 'Global Media Powerhouse,' discussed at the emergency economic ministers' meeting.
The government has high expectations for the digital media and content industry. Statistics show that when content exports increase by $100 million, exports of consumer goods such as clothing increase by $180 million. The export-driving effect of indirect advertising was confirmed when the 'Cheonsongi Coat' from the 2013 drama "My Love from the Star" sparked a direct purchase craze among Chinese viewers after airing.
First, the government sees the continuous supply of excellent original content as crucial to enhancing domestic OTT competitiveness and has proposed an amendment to the Restriction of Special Taxation Act to extend the production cost tax credit, currently applied only to films and broadcasts, to OTT as well. Currently, for costs incurred domestically for film and broadcast program production, small and medium enterprises receive a 10% tax credit, medium-sized enterprises 7%, and large enterprises 3%.
Alongside this, the government is promoting plans to hold a tentative 'Global OTT Awards' at internationally recognized events such as the Busan International Film Festival. It will actively introduce domestic OTT and content companies at high-level government meetings like the Asia-Pacific Economic Cooperation (APEC) and assist local market entry through six overseas 'IT Support Centers.' Support will also be provided for automated technologies for local language dubbing and subtitle provision.
The government plans to establish funds investing in the global expansion of domestic OTT and expand the operation scale of digital media and content-related funds, currently at 655.8 billion KRW. Additionally, through consultations with the Korea Communications Commission, it will ease product placement regulations stipulated in the Broadcasting Act to facilitate the inflow of industrial capital into the content industry.
Regarding metaverse development, the government plans to set up exhibition halls using domestic metaverse technology and hold metaverse meetings at large international events such as the '2030 Busan World Expo.' To cultivate metaverse technology talent, it will expand the Metaverse Convergence Graduate School and the Metaverse Academy, a training course for young developers.
Concerning creator workforce development, the focus is on professionalism and improving the work environment. The Ministry of Science and ICT will first investigate the revenue distribution status among creators, agencies (MCNs), and content platforms and promote providing creators with information on how much their content has been used on platforms.
To protect the rights of one-person media workers, the government will support the development and use of standard contracts and operate labor and legal consultation desks at the Seoul One-Person Media Complex. It will promote immersive one-person content planner education programs and establish certifications, and plans to systematize creator support by enacting a tentative 'One-Person Media Promotion Act.'
Minister Jongho Lee of the Ministry of Science and ICT emphasized, "We will make the digital media and content industry a future growth engine and an export engine."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
