Government Strengthens K-Content Industry Competitiveness with Strategic Fund

600 Billion KRW Scale K-Content and Media Strategic Fund
Korea Development Bank, CJ ENM, SLL, and Others Participate

The government is strengthening the international competitiveness of the K-content and media industry through a strategic fund.

[Image source=Yonhap News]

On the 2nd, the Ministry of Culture, Sports and Tourism and the Ministry of Science and ICT signed a business agreement with nine institutions and companies to establish and cooperate on a K-content and media strategic fund worth 600 billion won.

Considering the changing environment of the content industry, where competition for capital and IP acquisition intensifies due to the emergence of global over-the-top (OTT) platforms, the fund will invest in domestic companies' financing and intellectual property (IP) acquisition.

The agreement includes participation from Korea Development Bank, Industrial Bank of Korea, CJ ENM, Korean Broadcasting System (KBS), Jungang Group Consortium (SLL), KT, SK Broadband, LG U+, and Korea Growth Investment Corporation. They will build a cooperative system for strategic fund contributions, policy and industry advisory, and conducting investment projects.

An official from the Ministry of Culture, Sports and Tourism stated, "The involvement of Korea Development Bank and Industrial Bank of Korea is noteworthy," adding, "Although the content industry has emerged as a key export sector, appropriate policy funds have not been supplied, which was taken into consideration for participation."

A content industry representative said, "With production costs soaring, there is high anticipation for a strategic fund that can invest in large-scale projects," and added, "We hope the fund formation proceeds successfully and investments are made as soon as possible."

The Ministry of Culture, Sports and Tourism and the Ministry of Science and ICT will complete the establishment of the master fund and the operation plan for the strategic fund this month, and announce the sub-fund investment project next month. The sub-fund will be selected and established in December to supply investment capital to the market.

Yoo In-chon, Minister of Culture, Sports and Tourism, said, "We expect this agreement to be the starting point for nurturing global content companies," and added, "We will continue to provide content policy financing to establish a solid growth foundation for content companies."