S. Korea earmarks investment fund for entertainment industry

SEOUL, Jan. 21 (Yonhap) -- The government has newly earmarked 138 billion won
(US$122 million) in investment funds to support the production of cinema,
computer graphics and other entertainment content over the next three years, the
culture ministry said Thursday.
The fund from the ministry's budget will be run by a venture capital firm that,
based on the government seed money, will draw additional investments from the
private sector and select beneficiaries of the loans.
Minister Yu In-chon said this funding aims to not only increase capital available
for the entertainment industry, but also bolster investment sentiment for it.
"The problem is not the lack of money," Yu said in a press conference. "The real
problem is that content production is a creative industry and thus has a low
chance of success in the market. Many feel pressure from the high chance of
market failure and don't put money in there."
But the funding project, introduced in 2006, did boost actual investment,
according to the ministry and industry figures. Over the past four years, the
ministry has set aside 261 billion won in such funding for the entertainment
industry, and it has attracted nearly 520 billion won from private investors.
Yoon Je-kyun, director of the 2009 hit disaster movie "Haeundae," 40 percent of
whose 17.8 billion won budget was covered by the semi-governmental fund, said the
loan was essential for his film's production, given the reluctance of banks to
loan money for high-risk movie ventures.
"My producers said they wouldn't have made Haeundae if there wasn't the fund,"
Yoon said at the press conference.
"This fund is like the lifeline for us in the movie industry. We get support now,
but need more."
hkim@yna.co.kr
(END)