South Korea's Ministry of Culture, Sports and Tourism announced on Friday a massive budget increase of over 80 percent for the country's struggling film industry, bringing next year's allocation to 149 billion won ($110.7 million). This represents a substantial jump from this year's budget of 82.9 billion won and marks the second-highest funding level in the industry's history, exceeded only by the special emergency budget provided during the COVID-19 pandemic in 2022.
The dramatic funding boost comes as the Korean film industry faces what officials describe as an unprecedented crisis. Culture Minister Chae Hwi-young highlighted the dire situation during a press conference held at a Seoul theater on Thursday, marking one month since he assumed office. The minister painted a stark picture of an industry in free fall, with investment having virtually dried up and film production at critically low levels.
According to Minister Chae's assessment, fewer than 20 films with production budgets exceeding 3 billion won are expected to be made in South Korea this year, compared to approximately 100 films in a typical year. This dramatic decline reflects what the minister characterized as a "vicious cycle" plaguing the industry, driven by an investment drought, sharply declining moviegoer numbers, and the resulting financial collapse of the filmmaking ecosystem.
"Investment has stopped, and the film production scene has run out of money," Chae stated during the press conference. "The ecosystem of the film industry is collapsing to the point where filmmakers can't make a living." His comments underscored the severity of the crisis facing an industry that has been a significant cultural export for South Korea in recent decades.
The substantial budget increase will be strategically deployed across multiple areas to revitalize the sector. The funding will support independent and medium-sized film productions, which have been particularly hard hit by the investment crisis. Additionally, the ministry plans to invest in emerging technologies, including artificial intelligence applications in filmmaking, positioning the industry for future growth and innovation.
A major component of the revival plan includes the construction of a new state-of-the-art virtual production studio in Busan, which will provide filmmakers with cutting-edge facilities and technology. This infrastructure investment reflects the ministry's commitment to modernizing the industry and making it more competitive in the global marketplace.
Beyond direct budget allocations, the ministry has announced plans to inject 70 billion won to establish a 140 billion-won investment fund. This fund is designed to serve as seed money to attract private investment back into the film industry, potentially creating a multiplier effect that could generate significantly more funding than the government's initial contribution.
The current crisis represents a significant downturn for an industry that has achieved considerable international success in recent years, with Korean films gaining global recognition and commercial success. The ministry's intervention signals the government's recognition that the film industry requires immediate and substantial support to prevent further deterioration and to restore its position as a viable creative and economic sector.
