Government promises tax cuts, eased regulations for local online streaming services

Minister of Science and ICT Lee Jong-ho broadcasts the federal government’s plans to nurture the native streaming providers within the world market in an financial ministers’ assembly held Friday on the Seoul Authorities Complicated in Jongno District, central Seoul. [NEWS1]

 
The federal government on Friday promised tax cuts and eased laws for native on-line streaming providers in an intention to assist home platforms increase globally and develop Korea’s content material exports with its very personal Netflix.
 
The announcement got here from a ministers’ financial assembly held Friday morning, the place Science Minister Lee Jong-ho offered the ministry’s “Digital media content material trade innovation and world technique” containing the federal government’s plans for the home streaming market.
 
A invoice was put ahead by the federal government to revise the Restrictions of Particular Taxation Act final September, to permit streaming providers to get tax cuts on manufacturing prices at the moment solely utilized to tv and movie manufacturing firms. If handed, the invoice will permit streaming providers to learn from 3 to 10 % in tax cuts for manufacturing prices.
 
A brand new government-led fund will likely be established to offer monetary help, together with a rise in quantity of two present funds — a 629.8-billion-won ($471 million) fund for immersive and digital content material and a 26-billion-won fund for digital media content material.
 
Laws will likely be loosened for enterprise capitalists, permitting them to put money into content material firms which are 40-percent or much less owned by a conglomerate, up 10 share factors from the present 30 %.
 
The federal government may even maintain a World OTT Awards to advertise high-quality works from on-line streaming, in any other case generally known as over-the-top (OTT), providers. The awards will happen as part of present standard occasions, such because the Busan Worldwide Movie Pageant (BIFF).
 
Native streaming providers and content material will likely be promoted at high-level conferences. The metaverse will likely be promoted as a next-generation media platform and manufacturing firms will likely be inspired to distribute their content material via metaverse providers.
 
“The media content material trade is fast-changing round OTT, metaverse and creators,” Minister Lee stated. “It’s the core trade to find out the way forward for our nation’s competitiveness and likewise let younger folks notice their infinite creativeness. It’s of utmost significance that digital media platforms leap past the home market and go world.”
 
The federal government additionally introduced on Friday that it’s going to arrange a five-year technique to nurture the service trade, together with tax cuts, eased laws and monetary help. Particulars will likely be introduced March subsequent yr.

BY YOON SO-YEON [yoon.soyeon@joongang.co.kr]