[Interview] Wonseok Yoon, Incheon Free Economic Zone Commissioner: "We Will Make K-Con Land the Hollywood of Asia"

Establishing a Global Cultural Content Production Hub in Yeongjong and Cheongna
Incheon’s 'Airport Economic Zone' is the Ideal Base for K-Content Production
Four Global Companies, Including MBS Group, Submit Letters of Intent to Invest
Incentives Needed to Attract Investment, Such as Production Cost Rebates and Tax Reductions

"In the midst of tariff wars, 'bordered businesses' are taking a direct hit. This is why the content industry is so competitive. The K-content industry is a 'borderless business' that can attract foreign direct investment (FDI) and absorb the global market."

Wonseok Yoon, Commissioner of the Incheon Free Economic Zone Authority, said in an interview with Asia Economy, "Korea is highly dependent on exports, but we are facing difficulties in manufacturing exports and are also confronted with the US's tariff hikes. We need to find new strategies for economic growth, and cultural products like K-pop and K-dramas are the most competitive export items that are less affected by tariffs."

Wonseok Yoon, Commissioner of Incheon Free Economic Zone Authority

This is why the Incheon Free Economic Zone Authority is putting its utmost effort into developing 'K-Con Land,' a project that integrates the production and consumption of K-content with the tourism industry. K-Con Land is a project to create a complex cluster centered around the Incheon Free Economic Zone (IFEZ), fostering the video, cultural, and tourism industries, and producing and exporting content.

The Incheon Free Economic Zone Authority plans to launch a master plan research project in June for six locations in the Yeongjong and Cheongna areas near Incheon International Airport, aiming to develop specialized projects. Commissioner Yoon stated, "The master plan will include training specialized personnel such as location managers, expanding studios, and establishing an administrative support system for traffic control and other needs." He emphasized, "We will create a global cultural content production hub and build the 'Hollywood of Asia.'"

Why should Incheon be the hub for K-content production? Commissioner Yoon finds the answer in the 'airport economic zone.' "From the perspective of potential overseas investors, a location within 30 minutes of the airport is extremely attractive. In addition, the area has the conditions to concentrate power supply and communication network infrastructure. Currently, Sangam in Seoul serves as the K-content production hub, but studios are scattered and travel time from the airport is long, making it inefficient. We plan to establish an intensive content production system and a global distribution network in Yeongjong and Cheongna, Incheon, adjacent to the international airport, similar to Hollywood."

With the development of online video services (OTT), demand for international co-productions and investment and filming in Asia is increasing, raising expectations for the K-Con Land project. In fact, earlier this year, four companies, including the global studio development and operation company MBS Group, submitted letters of intent to invest. Notably, MBS, which owns more than 600 sound stages (studios designed for simultaneous filming and recording) worldwide, recently visited Cheongna to tour the project sites.

Incheon Free Economic Zone 'K-Con Land' Development Plan

K-Con Land is a project aligned with the government's 'K-Content Global Top 4 Strategy.' Concerns have been raised that the project might lose momentum due to the political turmoil following the impeachment. Commissioner Yoon expressed confidence, saying, "Unlike regular consumer goods, cultural content continues to be consumed based on passionate fandoms, even at high prices. There is no industry as competitive as K-content, which is now consumed worldwide. No government can afford not to push forward with K-Con Land, which is a future growth engine."

However, Commissioner Yoon urged the government to actively work on improving the investment environment in the video and media sector. He said, "If content production costs are considered as 1, the ripple effect on the local economy is 7 to 10 times greater. This is why advanced countries compete fiercely to attract productions by offering extraordinary incentives. When overseas content producers invest in domestic free economic zones, we need to provide significant incentives such as tax reductions."

As of 2003, Korea's video production incentive budget (including national and local funds) was only 2.9 billion won. Compared to advanced countries, Korea lacks incentives such as production cost rebates and tax reductions to attract investment, which is seen as an obstacle to attracting large production companies.

Commissioner Yoon said, "Recently, there has been a movement among Asian competitors to expand support for video production. In particular, Mongolia has proposed a 45% rebate for production cost reimbursement, which is very significant for us. I will actively propose adding special provisions related to the video and cultural industries to the Free Economic Zone Act, so that we can expand incentives and relax administrative regulations."