[2024 Budget] Expansion of Support for Foreign and Returning Companies... Establishment of 'K-Content Strategic Fund'

Expansion of Foreign Direct Investment Support to 200 Billion Won
Additional 1.8 Trillion Won Support for K-Content Exports

The government will invest 100 billion KRW in the budget to support reshoring companies in national and advanced strategic technology sectors such as semiconductors and batteries, while increasing subsidies for foreign direct investment from 50 billion KRW to 200 billion KRW. Additionally, it will provide an extra 1.8 trillion KRW to support K-content exports and establish a tentative 'K-Content Strategic Fund' worth 600 billion KRW.

According to the '2024 Budget Plan' announced by the government on the 29th, a total budget of 600 billion KRW has been allocated to promote corporate investment. To expand foreign and reshoring companies in national and advanced strategic technology sectors, up to 50% of the investment amount will be supported. The budget for this has increased by 75%, from 57 billion KRW this year to 100 billion KRW next year. Six national strategic technology fields designated by the government (semiconductors, displays, vaccines, secondary batteries, hydrogen, future mobility) and four advanced strategic technology fields (semiconductors, displays, bio, secondary batteries) will benefit.

To promote the relocation of domestic companies to local areas, subsidies have been slightly increased from 203.2 billion KRW this year to 212.7 billion KRW. Also, the national government support limit per company has been raised from 10 billion KRW to 20 billion KRW. Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho stated, "Support related to cash subsidies for foreign investment in national and advanced strategic technology sectors has been increased from a maximum of 40% to 50%."

Researchers are supporting performance evaluation for semiconductor material product development in the 12-inch semiconductor testbed cleanroom at the Daejeon Nano Convergence Technology Institute. It is forecasted that the global semiconductor shortage will continue until mid-next year. As the local industry in Gunnae is implementing strategies to advance the semiconductor ecosystem, there is growing interest in whether it will be affected by this trend, while countries around the world are also unveiling their countermeasures one after another. Our government is accelerating the advancement of the semiconductor ecosystem as well. Through the 'K-Semiconductor Strategy Report,' the government envisions a leap to becoming a comprehensive semiconductor powerhouse by 2030 and plans to complete semiconductor localization through massive investments and tax benefits. Having achieved K-quarantine through COVID-19, South Korea is expected to proudly demonstrate the success of K-semiconductors in the global semiconductor hegemony competition. Photo by Kang Jin-hyung, Daejeon aymsdream@

In the cultural industry sector, 1.77 trillion KRW in policy finance will be provided to support K-content exports. This is more than double the amount of 800 billion KRW this year. A 690 billion KRW mother fund will be established to assist companies struggling with content production due to financial difficulties, and a new public-private joint strategic fund called the K-Content Strategic Fund, worth 600 billion KRW, will be launched to secure intellectual property (IP) against the global OTT (online video service) offensive. The government will invest 80 billion KRW in the strategic fund, with the remainder invested by the Korea Development Bank and private companies.

Furthermore, 25 billion KRW will be invested by 2025 to build a new virtual studio for content visual effects (VFX) shooting. A completion guarantee of 240 billion KRW will be provided to companies that sign pre-sale contracts for content, and loan interest support of the same scale, 240 billion KRW, will be supplied to companies for content production.

Efforts will also be made to expand infrastructure to attract overseas tourists and revitalize regional tourism. 69 billion KRW will be provided for tourism development in the western metropolitan area, Chungcheong Confucianism area, and southern region, and 17.8 billion KRW will be invested to support the induction of foreign visitors in commemoration of the 'Year of Visit Korea' this year and next year.

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