Building Investment by Strengthening Value Muscles for Content Industry Structural Improvement

Korea Creative Content Agency Customized Policy Finance System
Support for Content Value Evaluation Investment Attraction, Additional Implementation of Customized Guarantee Systems for IP, etc.
Enhancement of Pitching Skills and Investment Matching Support

The content industry has entered the 'New Normal' era due to the novel coronavirus disease (COVID-19). The activation of online platforms has erased the boundaries between creators and consumers. There is a need for structural improvements suitable for digitalization and non-face-to-face consumption culture. Unfamiliar challenges require more than just guts and courage; strong stamina is necessary. Momentum to continue creation must be accumulated through employment stabilization and securing financial resources.

The Korea Creative Content Agency (KOCCA), acting as a trainer for content creators, unveiled a customized program on the 25th. This is the content policy finance system, divided into investment support, loan support, and investment-loan linkage. The plan is to strengthen policies that have led to positive effects and add new support to minimize COVID-19 damage.

Director Kim Young-jun promised, "We will double our efforts to expand policy finance to resolve the chronic lack of funds in content companies," and added, "We will reduce the industry's burden through innovative business restructuring and provide practical help to business recipients."

◆ Content Valuation = The core of investment support is content valuation. It evaluates the business potential such as completion and success of games, broadcasting, films, musicals, animation (for TV), and webtoons, and supports content companies in attracting investment through recommendations to investors and financial institutions. Companies that are producing content or have plans for planning, production, or distribution can all participate.

Policy Finance Team Leader Baek Seung-hyuk explained, "We prepare a final report recommending content to investors based on rating evaluation, economic feasibility assessment, and on-site inspection," adding, "The evaluation takes about six weeks."

KOCCA attracts investments ranging from approximately 100 million to 1 billion KRW through linked funds. It is already operating the 2nd fund (Capital One) and is preparing the 3rd fund with a goal for the second half of the year. They also increase investment potential by recommending reports to banks and venture capitalists and introducing excellent projects through investor workshops. Team Leader Baek said, "This will greatly help expand investment and financing for content companies and alleviate financial difficulties."

◆ Content Specialized Guarantee = KOCCA, together with the Korea Credit Guarantee Fund, has been implementing a customized guarantee system specialized for planning (up to 300 million KRW), production (up to 500 million KRW), and commercialization (up to 1 billion KRW) for companies in games, broadcasting, animation, films, music, performances, comics, publishing, characters, and knowledge information (content solutions) to ensure stable fund management. They also supported loan interest for up to one year (interest subsidy about 2.5%p) in cooperation with banks.

Additionally, through the Cultural Industry Completion Guarantee, they supported project completion funds of about 1.5 billion KRW for content companies that signed contracts with distributors. The support scope will expand further this year. The Content IP Guarantee, which took its first step last year, will be fully activated, and the K-Content Innovation Growth Guarantee will be newly introduced.

The Content IP Guarantee is a fund support system for content companies promoting business using content IP licensing. Content IP refers to intellectual property such as copyrights, trademarks, and design rights in the content field, recognized as having value. Companies producing OSMU (One Source Multi Use) content or licensing products and service companies can receive operating and facility funds of about 1 billion KRW after being recommended to the Korea Credit Guarantee Fund through KOCCA’s recommendation committee. Diverse companies (manufacturing, service industries, etc.) that want to produce or service content IP licensing products through rights transfer or usage contracts with content IP rights holders can also use this.

The K-Content Innovation Growth Guarantee supports guarantees for K-Content Innovation Growth projects. Global content companies that have signed export contracts with overseas local companies and content production companies specialized in converting existing face-to-face content to non-face-to-face or enabling consumption from planning and production in a non-face-to-face manner can participate. The target also includes new technology convergence content companies utilizing special-purpose technologies such as artificial intelligence (AI), big data, Internet of Things (IoT), intelligent robots, virtual reality (VR), augmented reality (AR), holograms, and media facades in content production. The guarantee limit is up to 1 billion KRW, and the period is up to five years.

Team Leader Baek explained, "This financial product was created reflecting the government's Korean New Deal and digital economy expansion policies," adding, "When companies apply for guarantees, they are recommended to the Korea Credit Guarantee Fund through a recommendation committee, and banks provide loans secured by guarantees issued by the Korea Credit Guarantee Fund."

◆ Content Pitching Platform ‘KNock’ = KOCCA also supports content companies in attracting investment through a customized integrated IR program and pitching events. The target is companies supported by KOCCA in production, startup, residency, etc. Customized education is provided for each company, and pitching capabilities are strengthened through mock pitching and mentoring. Then, the content company investment attraction pitching event ‘KNock’ offers pitching opportunities to outstanding companies from mock pitching and supports investment matching through 1:1 networking and company database utilization.

Team Leader Baek stated, "From May, we will conduct IR education, mock pitching, and pitching clinics, and plan to hold KNock from September to November." He added, "This year’s policy finance system aims not only to provide financial support but also to become a platform continuously connecting content companies and investors," and pledged, "We will make every effort to ensure many companies have pitching opportunities."

This content was produced with the assistance of AI translation services.