Korean Animation Business Gets $1 Billion Government Boost

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The administration of South Korea is placing substantial bets on the growth of animation, announcing a strategic investment plan worth approximately one billion dollars with the intention of turning their animated industry into a dominant force worldwide.

On Thursday, the Ministry of Culture, Sports and Tourism unveiled its “Comprehensive Strategy for Strengthening the Animation Industry,” a five-year program aimed at resolving persistent issues within the Korean animation industry, such as an excessive focus on content for young children, reliance on conventional television broadcasts, and challenging production environments, as reported by The Korea Herald.

At the core of our plan lies a significant monetary investment, starting with the launch of a KRW200 billion ($140 million) animation fund this year. This fund is set to grow to an impressive KRW1.5 trillion ($1 billion) by 2029. To entice global participants, the government will implement cash rebates for co-productions that comply with certain conditions and are predominantly made in Korea.

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The heart of our approach involves a substantial financial boost, initiating with a KRW200 billion ($140 million) animation fund launching this year, aiming to reach KRW1.5 trillion ($1 billion) by 2029. To draw in international talent, the government will offer cash rebates for co-productions that meet specific requirements and are primarily created in Korea.

This initiative focuses on expanding the audience base by offering tailored assistance for content that appeals to both young adults and older generations. Particular focus will be given to streaming services, short video apps, adaptations across multiple media platforms featuring popular webcomics and novels, as well as AI-generated spin-offs aimed at prolonging the longevity and worth of intellectual properties.

Notable achievements in this field include the popular animated movie “Heartsping: Tiny Love Tales,” which ranks as the second highest-grossing animated feature in the country with over a million ticket sales. The Korean animation industry also boasts significant successes, such as the hit film “Leafie: A Hen’s Journey into the Wild” (2011), which holds the record for the country’s most-watched animated movie with 2.2 million viewers, and the widely successful “Pororo the Little Penguin” series, which has produced a total of eleven feature films.

The government’s approach for growing internationally emphasizes tapping into thriving Asian economies, particularly by setting up shared exhibition spaces at significant animation events in China (including Greater China) and Southeast Asia. Korean Cultural Centers and K-Content Business Hubs will lead global promotional campaigns, while financial resources are earmarked for adapting content to local preferences such as voiceovers and subtitles.

Embracing technology’s revolutionary capabilities, the strategy proposes building an AI-driven environment encompassing production, distribution, and startup nurturing. Experts will create Korean-inspired AI learning resources for video content and establish a New Animation Promotion Committee with industry innovators. Legislation is also being drafted to encourage content featuring virtual humans and brief formats.

The program encompasses a broad spectrum of skill enhancement, offering educational courses for aspiring animators, scriptwriters, and technicians proficient in AI-based video production. This is done in collaboration with various academic institutions.

In the year 2023, the Korean animation industry generated a staggering $764 million, representing a significant 23% jump compared to the previous year. This impressive growth outpaced the overall content sector’s growth rate of just 2.1%. The Ministry of Culture has set ambitious goals for this industry: they aim to boost the animation industry’s revenue to $1.3 billion and increase exports from $120 million in 2023 to a projected $170 million by the year 2030.

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2025-04-25 17:46