Tax cuts, financing support planned for cultural contents

[THE INVESTOR] Tax cuts and state financing will be introduced for cultural contents producers as part of the Korea’s service sector growth plans, government ministries revealed on July 5.

The plans are aimed at facilitating the growth of Korea’s domestic market for cultural contents to 135 trillion won (US$ 116.8 billion) and contents trade balance to US$ 8 billion by 2020. The country’s contents market came in at 100 trillion won last year, and trade balance was US$ 4.6 billion. 

Under the plans, up to 10 percent of production cost of movies, dramas and other visual contents will be eligible for tax exemption. The government will also develop a system for valuing cultural contents to help producers obtain loans, and a fund of 50 billion won will be set up to aid local companies enter the Chinese market.

By Choi He-suk (cheesuk@heraldcorp.com)