Government Shifts from Subsidies to Investment [K, to Hollywood]

Transition to Performance-Linked Support System
Building Collaborative Structures and Strengthening Follow-Up Support

On-site at 'U-KNOCK 2025 in USA'

'U-KNOCK 2025 in USA' is more than just an overseas promotional event. It represents a 'policy-driven IR (Investor Relations)' model, in which the government directly designs the market and companies engage in real-world competition within that framework. The Ministry of Culture, Sports and Tourism and the Korea Creative Content Agency are co-hosting the event, bringing together local investors and production companies.

Performance Determines Support

The most significant change is that the government is no longer focused solely on providing subsidies. Now, companies must convince investors on their own.

The Ministry of Culture, Sports and Tourism has recently made investment performance a core metric for policy evaluation. The ministry now operates a system in which companies that secure investment contracts or joint production deals can receive production or commercialization support. This marks a shift from a 'support first, report later' approach to a performance-based support system.

This year, the content industry budget is approximately 1.3 trillion won. The amount allocated to support export-oriented companies through policy finance is increasing every year. The ministry is expanding overseas hubs focused on North America and Europe, and through the 'K-Content Fund,' it helps small and medium-sized production companies secure the costs needed for overseas distribution, marketing, and attracting investment.

On-site at 'U-KNOCK 2025 in USA'

The Korea Creative Content Agency has established a follow-up support system that continues beyond the event itself, including post-event investment consultations, global partner matching, and intellectual property (IP) commercialization advisory. Woo Seongbae, Head of Content Finance Support Team, explained, "We regularly monitor the performance of participating companies, and those with outstanding results receive additional evaluation points when applying for next year's programs, enabling them to receive continuous support." Among the fifteen companies that entered the U.S. market this year, two were selected as outstanding companies through the domestic content investment attraction program, KNOCK, rather than through the general open call.

Reactions from Participating Companies

Shin Changhwan, CEO of Studio Gale, said, "The competitiveness of the Korean animation industry has significantly weakened," adding, "In this urgent situation, the North American event is highly effective." He suggested, "It is important not to limit this to a once-a-year event, but to hold it at least quarterly or semi-annually to create more opportunities for contact with North American market partners."

Park Inchan, CEO of Studio W.Baba, stated, "U-KNOCK is evolving beyond simple networking into a platform that increases the actual business matching rate with overseas buyers," and added, "Since only highly credible companies participate under government leadership, overseas investors also consider the risk to be low."

Song Yusang, CEO of Millennial Works, commented, "Government-led programs like U-KNOCK provide a very important opportunity for early-stage startups," and evaluated, "They provide direct contact with major North American investors and partners, and government verification enhances brand credibility."

Kim Dongguk, CEO of High Stranger, praised U-KNOCK as "not just a simple IR, but a bridge program that genuinely helps domestic tech startups expand globally." He added, "Last July, we entered Japan through the Amazon Web Services (AWS) Global Business Expansion Contest (GBEC) and Lotte Ventures' 'L-Camp Japan' program, and within three months, we are already in discussions on open innovation (OI) with major Japanese broadcasters."

On-site at 'U-KNOCK 2025 in USA'

Team leader Woo emphasized the sustainability of U-KNOCK, stating, "Building a collaborative structure is crucial." He continued, "We are establishing ongoing networks with local investors and experts in law, distribution, and marketing, and strengthening follow-up support systems so that companies can settle in the local market even after the event."

The evolution of policy is not simply about subsidies. It depends on how much 'market design authority' can be delegated to the private sector. U-KNOCK is the first step in demonstrating that potential.