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Continuously Among Top 10 Countries Based on Hallyu Soft Power Close

Continuously Among Top 10 Countries Based on Hallyu Soft Power

The Korean film Parasite won the Palme d'Or at the 2019 Cannes Film Festival and the Best Picture at the 2020
Academy Awards. BTS joined the top 10 list in the Billboard Hot 100 in 2018 and 2019 and its song “Dynamite” topped
the Hot 100 in 2020, marking a pivotal moment in the history of global cultural content industry.

"Korean cultural contents recognized in the global market"

‘Parasite’ Investment distribution CJ ENM, ‘BTS’ Big Hit Entertainment, the agency

The size of the Korean cultural content industry has reached USD 69.2 billion (outlook for 2020), making it the seventh
largest in the world, and it is expected to grow 5% on average every year until 2023.

"Size of Worldwide Cultural Content Market"

(Unit : billion)

Size of Worldwide Cultural Content Market ranking, Country, year(2018~2023), '18~'23 Average annual growth rate (%)
ranking	Country	2018	2019	2020	2021	2022	2023	CAGR from 2018 to 2023 (%)
1	US	8,415	8,764	9,131	9,455	9,779	10,077	3.67
2	China	3,407	3,653	3,883	4,097	4,302	4,485	5.65
3	Japan	1,889	1,939	1,993	2,037	2,083	2,125	2.38
4	Germany	1,114	1,146	1,182	1,215	1,246	1,278	2.78
5	UK	1,026	1,068	1,111	1,150	1,188	1,221	3.54
6	France	768	788	809	829	847	865	2.42
7	Korea	623	656	692	727	762	795	5.01
8	Canada	566	588	611	634	656	678	3.69
9	Italy	462	485	509	531	554	575	4.46
10	Brazil	407	432	460	487	514	539	5.8

※ Source: KOCCA (2020), 2019 Overseas Content Market Analysis
※ Footnote: Estimation for 2018, outlook for 2019 to 2023

Continuous Growth Trend of Korean Cultural Content Industry Open

Continuous Growth Trend of Korean Cultural Content Industry

In 2018, the Korean cultural content industry recorded USD 108.7 billion in sales, USD 9.62 billion in exports, and
hired 667,000 people. The average annual growth rate grew steadily over the five years from 2014 to 2018 at 5.9% for sales, 16% for exports, and 2% for employment.

By industry, sales were the highest in the publication industry and broadcasting industry, consecutively. Exports were
highest in the game industry, posting USD 6.4 billion, accounting for 66.7% of total exports from the cultural content industry.

※ Source: Ministry of Culture, Sports and Tourism (2020), 2019 Content Industry Statistics
Active Content Production of Global Companies Located in Korea Open
Active Content Production of Global Companies Located in Korea

Foreign direct investment is made primarily in relatively larger businesses, such as publication, film, broadcasting, games,
and entertainment. Netflix and Huayi Brothers are representative examples of companies that have entered the Korean market.
- <옥자> Netflix
  
  Invested USD 700 million (KRW 800 billion) in content production after entering the Korean market in 2015 to October 2020
  
  Invested USD 50 million, the total production cost, for the film that released in 2017
  
  Invested in the entertainment show in 2018
  
  Produced dramas and in 2019
- Huayi Brothers
  
  Promote investment in Korean content companies to meet increasing demand for cultural content in China
  
  Invested USD 8 million in a film production company Merrychristmas in 2018, acquired 75% of stocks, and changed to a subsidiary
  
  Strategic equity investment by buying E-Land World stocks in 2019 and support marketing and medica commerce utilizing actors and actresses from the company
Three Innovative Strategies for a New Leap Forward of the Cultural Content Industry Open
Three Innovative Strategies for a New Leap Forward of the Cultural Content Industry

The Korean government proposed various policies and incentives in September 2019, such as three innovative strategies
and financial support, for a new leap forward of the cultural content industry. In addition, in 2020 a group of funds worth
USD 72 million was created to invest in eight areas, including adventure content, film, games, content intellectual property (IP), animation, and characters.

※ * Adventure content: Content that poses risks at the early stage of production

"Goal of Cultural Content Industry in 2022"
- Sales: 1,140.6억 달러('19) > 1,397.8억 달러('22) 22.5% 증가
- Exports: 103.6억 달러('19) > 134.2억 달러('22) 29.5% 증가
- Jobs: 66.2만명('19) > 70만명('22) 5.7% 증가
- Sales of immersive content: 24.1 억 달러('19) > 98.9억 달러('22) 310.7% 증가
- Export of Hallyu consumer goods: 36.5억 달러('19) > 50억 달러('22) 37% 증가
- Number of content companies with sales of at least KRW 10 billion: 1,700개('19) > 2,000개('22) 17.6% 증가
Government-led Creation of Culture Hubs Open
Government-led Creation of Culture Hubs

Because of the cultural content industry’s characteristic of being led by human resources, 90% of cultural content companies
are located in the Seoul metropolitan area.Following the government’s policies to foster regional cultural industries, locations favorable for each genre are being created.

The government led the creation of a cultural industry complex, a cultural industry promotion complex, and cultural
industry promotion facilities, aiming to create synergic effects by attracting cultural content companies and integrating
related industries. According to the Framework Act on the Promotion of Cultural Industries, resident companies in those complexes are granted exemptions of charges, approval and permission benefits, and tax benefits.

"Location of Major Cultural Industries in Korea"
- Chuncheon – Edutainment content
- Bucheon – Comics, animation
- Goyang – Broadcasting image (broadcasting, film, animation, game)
- Incheon – Next generation immersive content
- Seongnam – Games and IPTV
- Cheonan – Cultural design
- Cheongju – Edutainment, content
- Daejeon – Advanced images (film), games
- Andong – Images, handcrafts, performance/exhibition
- Jeonju – Korean traditional cultural content, images
- Daegu – Games, mobile content, characters, new media content
- Gwangju – Cultural center city of Asia, cultural industry investment promotion zone
- Busan – Film, games
- Jeju – Digital images, mobile content
※ Source: Korea Culture and Tourism Institute

Invest KOREA

Cultural Content PM

Lee Yoon Seo Service Industry Promotion Team

T.+82-2-3460-3282

Recommendation on Locations

BEST1

[Incheon Metropolitan City Yeonsu-gu]

Songdo Knowledge and Information Industrial Complex(Incheon Free Economic Zone)

Designated area(m2) : 2,401,745
Management : Incheon Free Economic Zone Authority
Nearby Railway : Bupyeong Station (18km)
Nearby Airport : Incheon Airport (31km)

BEST2

[Gangwon-do Chuncheon City]

Chuncheon Urban High-tech Cultural Industrial Complex

Designated area(m2) : 186,922
Management : Gangwon-do Chuncheon City
Nearby Railway : Jipyeong Station (60km)
Nearby Airport : Wonju Airport (78km)

BEST3

[Gangwon-do Chuncheon City]

Chuncheon Power IT Cultural Complex General Industrial Complex

Designated area(m2) : 353,659
Management : Gangwon-do Chuncheon City
Nearby Railway : Yangpyeong Station (49km)
Nearby Airport : Wonju Airport (65km)

BEST4

[Chungcheongbuk-do Cheongju City]

Cheongju Urban High-tech Cultural Industrial Complex

Designated area(m2) : 47,900
Management : Chungcheongbuk-do Cheongju City
Nearby Railway : Ogeunjang Station (6km)
Nearby Airport : Cheongju International Airport (9km)

BEST5

[Gyeonggi-do Paju City]

Paju Publishing Culture Information National Industrial Complex

Designated area(m2) : 1,561,939
Management : Korea Industrial Complex Corporation
Nearby Railway : Paju Station (17km)
Nearby Airport : Gimpo International Airport (29km)

BEST6

[Gwangju Metropolitan City Nam-gu]

Songam General Industrial Complex

Designated area(m2) : 415,946
Management : Gwangju City (Songam Industrial Complex Council)
Nearby Railway : Gwangju Station (14km)
Nearby Airport : Gwangju Airport (9km)