Four-Year Extension of Tax Credit for Film Production Costs Proposed

Representative Kim Seungsoo Proposes Amendment
Four-Year Extension of Film Production Tax Credit Sought
Industry Stresses Need for Continued Support

A proposed amendment to the Restriction of Special Taxation Act, which includes a four-year extension of the tax credit sunset for film production costs, has been introduced.

Yonhap News Agency

On June 26, Representative Kim Seungsoo announced that he had submitted a bill to extend the sunset date to December 31, 2029. Under the current law, the tax credit is valid until December 31 of this year. Kim predicted that, if the amendment passes, annual investment would increase by more than 38 billion won and over 1,800 new jobs would be created each year.

Industry stakeholders unanimously agree that the extension is necessary, even just to maintain the current state of the industry. The film industry suffered severe damage during the COVID-19 pandemic. Both theater attendance and the number of films released have dropped to about half the levels seen in 2019. Various forms of support are needed, both in the short and long term, to help the industry recover its strength.

Representative Kim stated, "If the current trend continues, the achievements that the film industry has built up over decades through hard work and dedication could collapse all at once. I will do my utmost to ensure that investment continues and that film production remains active."