Mumbai: New research prepared by Frontier Economics on behalf of the Motion Picture Association credits the South Korean government’s supportive policy environment and proactive efforts in copyright protection as key factors behind the growth and success of K-content. The MPA released the Frontier Economics report yesterday at an invitation-only event – Secrets of Success: the K-Power Story – during the 29th Busan International Film Festival.
K-Content has become a cultural phenomenon, known as the "Korean Wave" (Hallyu), that is fueling South Korea’s rise as a global cultural powerhouse. Korean dramas, films and webtoons have gained massive followings around the world, generating an economic boon for the country and increasing Korea’s soft power exponentially.
The report confirms the premise that sales of Korean content around the world drive Korea’s exports. In 2021, content sector exports reached USD12.4 billion (KRW16.0 trillion), and, recognising this success, the ministry of culture, sports and tourism has set a goal to double Korean cultural exports by 2027.
Noticeably, the role of international VOD services has been critical to K-content exports. Frontier Economics highlights that 60 per cent of Netflix global subscribers have seen at least one Korean title. K-content’s popularity drives demand for online services in the Asia Pacific region: nearly 50 per cent of audience time spent on subscription VOD services in Asia Pacific involves watching Korean content.
Opening the forum, MPA president & managing director Asia Pacific Belinda Lui said, "The success of the K-content industry is not accidental. It stems from a combination of creative genius, the freedom to tell stories and smart government action. Action in the form of a policy framework that encourages investment supports world-class production and backs development in talent and infrastructure. What comes next for the sector requires an informed conversation, and Frontier Economics’ findings provide a valuable contribution to that debate."
Film critic Yoon Sung-eun moderated a dynamic panel session featuring prominent executives from the film, television and streaming industry.
“The arrival of streaming services in Korea over the last five to eight years refocused the Korean government on the importance of the screen sector”, said Kim Jong Hak Production CEO Sohn Gi-won. “The spotlight shone brightly on the industry and a wide range of funding was made available to smaller production companies.”
Detailing some of the smart governance implemented over several decades, Film Business Division, Korean Film Council, director Kim Hyun-soo said, “Financial support ramped up in the 1990s. New SMEs started to invest in film and television. Following the Asian economic crisis, the government realized that more investment was required to stimulate the business. They introduced the idea of project financing. CGV and Lotte started to build multiplexes. These companies also invested in films to screen in their theatres. What is most important is that new films were funded through government agencies. With this injection of investment, screenwriters and directors entered the market. In summary, deregulation fundamentally contributed to positive developments from the government and private sectors.”
Proposing what the Korean industry might consider as the next phase of its development, Schuyler Weiss, producer of the Academy Award-nominated film Elvis, said, “Opening up the Korean market to international production will benefit the entire Korean entertainment ecosystem and the local economy will profit. Korea has so much to gain from more collaboration with producers from around the world.”
SLL Central team leader Seong Won-young added, "In the future, it would be good to see a higher proportion of non-scripted content – in the entertainment or sports sectors – shows like Chef in Black and White or Strongest Baseball, produced by Netflix, for example. In other words, I believe we need to diversify the portfolio in addition to series content."
The Motion Picture Association has partnered with the Busan International Film Festival for more than a decade. This year, the association is hosting the second annual MPA x KOFIC American Film Night, the MPA Chanel x BIFF Asian Film Academy Workshop: Bridge to Hollywood, and a feature film pitch competition in partnership with the Korean Academy of Film Arts.
View and download Frontier Economics Policy + The Rise of K-Content 2024 here.
