Culture Ministry Launches New Policy Financing for Arts Enterprises: 43.75 Billion Won in Loans and Guarantees

The Ministry of Culture, Sports and Tourism announced on March 13 that it will establish new policy financing totaling 43.75 billion won, in cooperation with the Korea Arts Management Service, to help arts enterprises build self-sustainability. This support includes 20 billion won in loans and 23.75 billion won in guarantees.

The ministry explained that, similar to the tourism and sports industries, it will introduce low-interest policy loans to the arts industry, focusing on performing arts and visual arts. In addition, it will launch new arts industry guarantees to support all areas of the arts, which were previously excluded from existing cultural industry guarantees. Loans will be available through NH NongHyup Bank and Hana Bank starting March 16, while applications for guarantees will be accepted by Korea Technology Finance Corporation from April 1.

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Eligible candidates for loans include private arts facilities such as theaters and art museums, as well as arts service businesses such as agencies and production companies. A total of 20 billion won will be supplied for two fields: (1) facility funds (for renovation, expansion, new construction, purchase and installation of machinery and equipment) and (2) operational funds (for expenses such as personnel costs, promotional expenses, material costs, and rental fees needed for business activities).

The loan interest rate will be based on the variable rate of the Public Capital Management Fund loan account (2.96% for Q1 2026). Large and mid-sized companies will pay a 0.04 percentage point premium, while small and medium-sized enterprises will receive a 0.21 percentage point preferential rate. For youth-led companies (where the leader is aged 39 or younger), a fixed rate of 2.5% will apply. The loan limit ranges from 500 million won to 3 billion won, and the repayment period varies from five to ten years depending on the applicant and the use of funds. Whether a loan is granted and the amount will be determined by the bank's review, and funds must be used within the year they are provided.

Businesses wishing to apply for a loan must first consult with NH NongHyup Bank or Hana Bank branches nationwide regarding collateral, and then submit a recommendation application to the Korea Arts Management Service. Loan recommendation applications will be accepted through the National Culture and Arts Support System from March 16 to April 7. If funds remain after the first round, a second call for applications using the remaining budget will be held in the first half of the year.

The guarantee sector covers literature, visual arts, music (excluding popular music), dance, theater, Korean traditional music, photography, architecture, musicals, and more. Two types of guarantees will be provided, totaling 23.75 billion won: (1) for "arts enterprises," supporting operational funds based on an evaluation of business growth potential, and (2) for "arts projects," supporting planning and production funds for performances and exhibitions.

The maximum guarantee per company is 1 billion won. After evaluation and recommendation by the Korea Arts Management Service, Korea Technology Finance Corporation will review and issue guarantee certificates. With these certificates, businesses can receive the necessary loans from commercial banks.

Applicants seeking guarantees can apply through the National Culture and Arts Support System. Applications will be accepted regularly from the 1st to the 10th of each month starting in April, and the results of recommendations will be announced at the end of each month after the application period closes. Detailed information on this financial support program will be available in the official guidelines posted on the Korea Arts Management Service website on the day the loan and guarantee calls begin.

Jeong Hyangmi, policy chief of the Ministry of Culture, Sports and Tourism, stated, "Given the nature of the arts sector, many companies have high growth potential but poor credit or collateral. We plan to supply sufficient funds through loans and guarantees to ensure that arts enterprises face no restrictions in attracting investment or receiving loans. We hope this policy financing will serve as a springboard for more arts companies to advance onto the world stage."

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