South Korea is now aiming to take the Korean animation industry to the next level with a $1 billion (105 billion won) boost and new policies!
South Korea’s Ministry of Culture, Sports and Tourism has announced a “Basic Plan for the Promotion of the Animation Industry.” The investment of $1 billion over the next five years aims to turn South Korea into a global powerhouse in the animation industry.
What’s holding the Korean animation industry back?
This ambitious plan aims to tackle basic challenges in the Korean animation industry. Currently, there are a few core challenges, including a large dependence on early learning content, reliance on broadcast on TV, suboptimal production conditions that aren’t up to the mark, and limited budget.
South Korea’s Ambitious Korean Animation Industry Overhaul: A $1 Billion Vision
Strategic financial investments by Korean Government
The South Korean government plans for several strategic investments over the next five years.
- Setting up a $14 million (20 billion Korean won) animation fund in 2025
- Expanding this fund to $106 million (105 billion won) by 2029
Additionally, the government will have a cash rebate system. It aims to introduce incentives that will attract foreign investments in the Korean animation industry. One of the incentives is production cost reimbursement with international co-productions that fit specific criteria and are mainly made in Korea.
Change in content strategy
There will be modifications in the created content to make it suitable for global audiences.
- Target audience: Young adults and older demographics.
- Content platforms: Streaming services and short-form video apps.
- Content expansion: Cross-media adaptations with webtoons and web novels, and AI-powered spin-offs.
It will also focus on creating merchandise and cultural products based on the Korean animation industry. There will be merch from animation characters, virtual humans, and even short-form IP.
Global outreach
To enhance Korea’s presence in the global market:
- International pavilions: South Korea plans to establish joint pavilions at major animation markets in Greater China and Southeast Asia.
- Localization support: It will also provide structured assistance for dubbing, subtitling, and other localization efforts.
- Marketing initiatives: The Korean animation industry will leverage Korean Cultural Centers and K-Content Business Centers overseas for global promotion.
Embracing the latest technologies
As technological advancements are evolving at an exponential pace, the Korean animation industry will also start focusing on integrating these technologies. The government aims to develop an AI-driven framework for animation production, distribution, and startup incubation. It will also make Korean-specific AI training datasets for video content. The South Korean government is also planning to propose new laws to systematically support emerging media content, including virtual humans and short-form formats. A Second Animation Promotion Committee will be set up with experts from emerging media.
Cultivating local talents
To ensure a steady pipeline of skilled professionals:
- Educational programs: Implement training for animation planners, writers, and AI-skilled video production professionals in partnership with universities and affiliated institutions.
- Industry partnerships: Encourage collaborations between small creators and larger firms, offering commercialization training and industry insights.
Economic impact and future projections
The plan sets forth ambitious targets:
- Revenue growth: Plans to increase the animation industry’s revenue from 1.1 trillion won in 2023 to 1.9 trillion won by 2030.
- Export expansion: Boost animation exports from $120 million to $170 million within the same period.
- Workforce development: Expand the number of animation industry professionals from 6,417 to 9,000 by 2030.
South Korea’s comprehensive approach signals a new era for its animation industry, blending cultural richness with technological advancement to captivate audiences worldwide.
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