watchlist2024 outsize popularity of Korean hits, and increased attention being paid to rights arrangements between streamers and domestic producers. “Global online video services monopolise excess Korean authorities are doing every-
profits by transfer-
thing they can to protect and promote
ring intellectual
K-content. Things we’re watching in
property when
2024 include a new US$776m fund and
investing in do-
the benefits of the peace accord signed
mestic content
between SK Telecom and Netflix.
production, and there
oped in consultation with local produc-
are many phenomena
ers and platforms, and included
Exactly two months after Korean telecom-
in which domestic pro-
measures to boost the domestic
munications giant SK Telecom and global
duction companies are
movie/theatrical industry.
streamer Netflix ended years of bitter
unable to generate
“Unlike the rapid progress
wrangling over broadband network us-
profits through sec-
of global online video ser-
age fees, the Korean government made
ondary works,” the
vices (OTT), as domestic
it very clear that it wasn’t taking its eye off
ministry said, add-
online video services
this particular ball.
ing: “In addition,
and broadcasting com-
The September 2023 peace accord was
problems are being
panies are facing wors-
followed in November, when the newly in-
raised that creators
ening management
stalled Minister of Culture, Sports and Tour-
such as directors
difficulties, production
ism, Yu In-chon, unveiled a plan to ex-
do not receive fair
companies are also ex-
pand the country’s already powerful con-
compensation after
tent industry to KRW 40 trillion/US$31 billion
transferring all rights”.
by 2027 – a 42.8% increase from KRW 28
And just in case
periencing difficulties,” the ministry said. From January to September
trillion/US$21.7 million in 2022 – as part
they weren’t being clear
of a new “Video Industry Leap Forward
enough, the ministry said the
Strategy”. The measures are grounded in
plan was “in response to the
the same period in 2017 to 2019. The top film by far this
a determination to protect and promote
current situation where the
year is The Round Up: No Way Out, with Don Lee as a
the domestic industry.
dominance of global online video servic-
detective who joins a violent crime investigation unit in
es (OTT) is growing and the importance of
Seoul. The film grossed US$80.3 million, according to the
intellectual property (IP) is increasing”.
Korean Film Council. Smugglers, about a peaceful vil-
The strategy includes a five-year KRW 1 trillion/US$776 million fund, raised from
2023, movie theatre sales (KRW 956.5 billion/US$741 million) was only 70% of the average for
multiple government agencies and pri-
Minister Yu, who has held the position
lage disrupted by smugglers, is second, with US$38 million
vate investment, to boost premium video
since September, said the plan aimed
gross. Describing Korea’s film industry as in a “serious re-
content. The K-Content Strategy Fund,
to support the industry and respond to
cession,” the ministry said about 50 films were still waiting
which kicks off in 2024 with KRW 600 bil-
change. The ministry used phrases like
for release as of November 2023.
lion/US$465 million, will run to 2028.
“create favorable conditions” to describe
And then there are the promised benefits of the hard-
Hopes are that the “killer content” initia-
its goals, along with “further strengthen
fought/won peace accord between SK Telecom and
tives will boost exports to US$1.8 billion by
the competitiveness of K-video content”.
Netflix, which involved a a multi-layered bundling and
2027 and produce at least a handful of
Data presented during the announce-
tech partnership the companies said was designed “to
ment showed the global online video
enhance customers’ entertainment experience”. The first
service market had grown at an average
products from the new alliance, which may eventually
of tax credits for content production costs,
annual rate of 25% between 2018 and
include SK Telecom/Broadband’s AI technologies, are
and the possibility of tax deductions for
2022. Export volume of Korean content
expected to be released from first half 2024. If those work,
streaming subscription payments, which
had increased from US$550 million in 2017
there may be more. The new treaty, the companied said
will be considered “cultural expenses”.
to US$920 million in 2021.
in September 2023, puts SK and Netflix on a path to “col-
global awards. On the agenda too are the expansion
The government’s move follows the
14
The minister said the plan was devel-
laborate as partners for the future”.
contentasia december 2023