Choo Kyung-ho: "Service Industry Development TF to be Formed by the End of This Month, 5-Year Plan to be Announced Early Next Year"

"Tax Credit for OTT Content Production Costs"

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Kim Hyewon] On the 18th, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho announced, "We will form a public-private joint Service Industry Development Task Force (TF) by the end of this month and begin full-scale operations."

Deputy Prime Minister Choo presided over an emergency economic ministers' meeting that morning and said, "The development of the service industry is an essential structural reform task to improve the economic structure and enhance growth potential."

He added, "We will form the TF joint team leaders and members with private experts who have abundant experience and insight to promote private-led innovation and strengthen multi-ministerial collaboration efforts. By early next year, we will prepare a five-year plan as well as sector-specific service innovation measures in areas such as health and medical care, culture, and content." Regarding the health and medical sector, he explained that measures will be prepared within the current medical law system, including maintaining medical publicness.

Efforts to legislate the Service Industry Development Basic Act, first proposed in December 2011 and still pending in the National Assembly, will also be strengthened. Deputy Prime Minister Choo said, "Considering the recent trend of all industries becoming service-oriented and the interconnection among service sectors, we will establish a foundation for service industry convergence and fusion, prepare grounds for supporting service exports in line with the expansion of service trade, and build a cross-ministerial service export support system."

The government plans to actively promote competitiveness in the digital media and content industry, which is gaining global attention among service industries, and support the global expansion of Korean companies.

Deputy Prime Minister Choo stated, "We will develop core technologies such as AI-based video conversion and expand policy support by including online video service (OTT) content production costs as eligible for tax credits."

He continued, "Through the government’s mother fund, we will invest in digital content production and virtual technology development, and to activate joint investments between large and small-medium enterprises, we will also ease related regulations* to expand investment incentives in the industry."

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