South Korean Government To Invest $1 Billion Into Animation Industry

Animation is currently booming all over Asia, wtih China’s Ne Zha 2 smashing global records and Indonesia’s Jumbo setting local records. Not wanting to be left behind, South Korea’s government has revealed an ambitious plan for its animation industry.

Korea’s Ministry of Culture, Sports and Tourism announced yesterday a new US$1 billion (1.5 trillion won) investment plan for the sector. The new “Basic Plan for the Promotion of the Animation Industry” will run for five years and aims to grow the country’s animation industry revenue from 1.1 trillion won (in 2023) to 1.9 trillion won (US$1.3 billion) by 2030. Alongside the revenue growth, the initiative will support the expansion of industry workers from 6,400 to 9,000 people.

In announcing the plan, acting prime minister Han Duck-soo said, “We will create an animation specialized fund to focus investment on related small and medium-sized enterprises and venture companies, and actively support attracting investments from OTT to broadcasters and venture capitalists.”

In past years, other Asian governments have implemented top-down efforts to grow their animation industries with mixed results. While the government efforts often fizzle out or fail to achieve their stated goals, the net impact is usually positive and contributes to the growth of their local industries.

Korea’s legacy as a service provider to American animation studios is long established, but in recent years, the country has made efforts to develop original content. Currently, most successful Korean productions, like Heartsping: Teenieping of Love or Leafie: A Hen Into the Wild, don’t travel far outside of the country, but the new government strategy aims to expand the reach of its content to China and Southeast Asia.

It is, however, worth noting that the second-highest-grossing animated film in the U.S. this year — The King of Kings — is a Korean production. Meanwhile, Netflix is debuting its first original Korean animated feature, Lost in Starlight, this summer.

According to the Korea Herald, the plan will also address structural challenges in the country’s animation sector including “reliance on preschool content, dependence on television broadcasting, and poor production conditions.”

Key highlights from the plan include:

• A new cash rebate system to attract foreign investment.
• Supporting more animation content for young adult and adult audiences, especially by supporting adaptations of webtoons and web novels, as well as “AI-powered spin-offs” of existing animation IP.
• Establishing a presence at international animation markets in China and Southeast Asia, as well as government support for dubbing and subtitling productions to present at these markets.
• The establishment of a Korean AI training dataset for video content, as well as training programs for animation producers, writers, and AI video creators, in partnership with universities. The country is also forming a committee of emerging media experts to guide the development of tech efforts. Per the Herald, “A new law will also be proposed to systematically support new media content involving virtual humans and short-form formats.”
• Government support for merchandising of animated characters, virtual humans, and short-form IP.