[Comprehensive] Choi Ki-young, Minister of Science and ICT, "This Year Is the Golden Time for Domestic OTT Growth"

Emphasized at the Meeting Attended by Leading Domestic OTT Companies

On the afternoon of the 29th, the Ministry of Science and ICT held the 'Internet Video Service and Content Development Meeting' in the Jung-gu area of Seoul. From the left, Shin Jong-su, Head of Kakao M, Yang Ji-eul, CEO of TVING, Park Tae-hoon, CEO of Watcha, Choi Ki-young, Minister of Science and ICT, Lee Tae-hyun, CEO of Wavve, and Park Dae-jun, CEO of Coupang, are posing for a commemorative photo.

[Asia Economy Reporter Minyoung Cha] "I believe this year will be a crucial golden time for our companies to achieve significant growth in the domestic online video service (OTT) market going forward."

On the afternoon of the 29th, Choi Ki-young, Minister of Science and ICT, held a meeting with leading domestic OTT companies around Gwanghwamun, Seoul, and made this statement. Attendees included domestic OTT companies such as Watcha, Kakao M, Content Wave, Coupang, and TVING, who shared the difficulties faced by domestic companies and conveyed the industry's position to the government.

Minister Choi said, "I think OTT is one of the most important topics in the global media market recently," adding, "Worldwide, due to increased indoor stay time caused by COVID-19, the number of OTT users such as Netflix and Disney Plus has surged significantly."

He continued, "The phenomenon of cord-cutting in the U.S. is also expected to accelerate, and the media market paradigm is rapidly shifting toward OTT," adding, "In Korea as well, thanks to the non-face-to-face culture and the spread of 5G, the OTT market grew rapidly last year, but global operators still lead the growth of the domestic market."

He further stated, "Fortunately, I am aware that through your efforts last year, there were expansions in original content production investment, new service launches, and overseas expansion," and said, "In that regard, last year was a year of great significance in laying the growth foundation for our OTT companies."

Emphasizing the importance of industry support by naming this year the "golden time," Minister Choi said, "The domestic OTT market is expected to become more competitive with Netflix's increased investment in domestic content production and Disney Plus's domestic launch," adding, "Considering the timing's importance, the Ministry of Science and ICT will focus all its capabilities this year on producing tangible results from the digital media ecosystem development plan jointly prepared by multiple ministries."

He pledged, "Under the 'minimum regulation principle,' we will create a foundation where companies can innovate and strive to introduce policies needed by the industry, such as tax credits," and added, "To support high-definition content provision and customized services, we will actively discover and promote new projects such as media intelligence technology development and AI-based automatic translation technology development."

The Ministry of Science and ICT will collaborate with related ministries to implement the digital media ecosystem development plan for the advancement of our OTT companies. Support for producing OTT-specialized content such as web dramas will be expanded, and comprehensive support policies based on industry demands, including media intelligence technology and AI-based automatic translation system technology development, will be promoted.

Specifically, ▲ To revitalize original content production, tax credits and a voluntary rating system will be implemented. Support for original content production will be provided, and a digital media content fund will also be established. ▲ In terms of OTT-specialized technology development, media intelligence technology development and AI-based automatic translation systems will be created, and new OTT-specialized projects will be discovered. ▲ For production facilities and equipment support, a one-person media complex will be established, and the Bitmaru Broadcasting Support Center will be constructed. ▲ For overseas expansion support, collaboration between devices and platforms will be assisted, market research and legal consultation services will be provided, and business matching will also be supported. Additionally, ▲ To establish a foundation for sustainable development, mid- to long-term institutional improvements and human resource development will be supported.

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