Seven Organizations Including Korea Drama Production Association "Welcome Significant Expansion of Tax Credit"

Welcoming the Ministry of Economy and Finance's Tax Reform Plan on the 27th
Concerns over Undefined Additional Deduction Criteria
"We Will Strive to Become a Strategic Industry"

On the 27th, the Ministry of Economy and Finance announced a tax reform plan to expand the tax credit for video content production costs up to 30%, which was welcomed by the related industry. According to the reform plan, the existing tax credit rates applied to video content production costs by large enterprises, medium-sized enterprises, and small businesses, which were 3%, 7%, and 10% respectively, have been increased to 5%, 10%, and 15%. Additionally, video content with significant domestic industrial ripple effects will receive an additional credit of 10% (for large and medium-sized enterprises) to 15% (for small businesses).

The Korea Drama Production Association, Korea Broadcasting Video Production Association, Korea Broadcasting Channel Promotion Association, Korea Broadcasting Association, Korea Animation Producers Association, Korea Animation Industry Association, and Korea Film Producers Guild jointly issued a statement titled "Welcome the Decision to Greatly Expand the Tax Credit Rate for Video Content Production Costs." They stated, "As the status of K-content rises globally, opportunities for global expansion are increasing, but at the same time, competition in the global market is intensifying and domestic production costs are continuously rising, creating a coexistence of opportunities and crises." They added, "The decision to raise the tax credit rate to the level of major overseas countries is expected to greatly contribute to strengthening the global competitiveness of Korea's content industry."

However, they expressed concerns regarding the additional credit criteria to be set by enforcement decree. They said, "We hope that the conditions for the additional tax credit rate for video content production costs being prepared by the government will not become regulatory measures," and "We also request active cooperation from the National Assembly until the amendment to the Restriction of Special Taxation Act is passed." They concluded the statement by saying, "The major organizations producing and presenting content loved by people worldwide, along with members of the content industry, will strive to make the video content industry a strategic industry that is key to expanding exports, using this decision as an opportunity."

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