The Ministry of Science and ICT (“MSIT”; Minister Lee Jong-Ho) announced that it regards Kakao Entertainment (CEOs Joy Lee and Stephan Kim) attracting approximately KRW 1.2 trillion investments from Saudi Arabia and Singapore a momentum for the country’s content industry.
This investment attraction, which is a diplomatic achievement from the Korea-Saudi Arabia Summit between President Yoon Suk Yeol and Crown Prince Mohammed bin Salman in November last year, is the largest foreign investment attraction made by a domestic content company. Kakao Entertainment plans to expand investments in diverse sectors of the content industry, from media/video content (e.g. OTT media service) to music to webtoons to web novels and strengthen its intellectual property value chain.
The KRW 1.2 trillion investments are expected to be useful resources for expanding the foundation and raising the competitiveness of Korean content, which is garnering global attention. Moreover, integration with emerging technologies such as artificial intelligence, virtual reality and augmented reality can lead to unique content.
Foreign markets are critical to the media industry (including VOD platforms), which is facing the double whammy of a sluggish growth and a rapid increase of production costs. In this regard, investments from Saudi Arabia and Singapore is meaningful because they can serve as a bridge towards the Middle East and Southeast Asia, where Korean content is popular. Moreover, the investments will also create opportunities for related industries to grow and secure global competitiveness—for example, through possible future global projects, Korea’s outstanding content and intellectual properties can global recognition throughout the world and diverse suppliers can expand their global networks and gain overseas experience.
The MSIT published the Strategy for Innovation and Globalization of Digital Platforms and Content on November 18 last year and is making efforts to raise the competitiveness of the content industry. The MSIT will actively support outstanding domestic digital/media companies to go abroad through policy measures such as: production support to internet VOD/content consortia; sending digital export pioneer groups to potential markets in the Middle East and Southeast Asia; overseas market entry support through local hubs such as the Korea IT Cooperation Center in Singapore; hosting an international VOD Award to showcase Korea’s internet VOD platforms to global audience; and strengthening policy financing and funding to help digital startups founded by young entrepreneurs go aborad.
Moreover, the MSIT will create opportunities to facilitate foreign investment attraction so that more companies can attract foreign investments like Kakao Entertainment and will continue to work with Kakao Entertainment so that this foreign investment attraction not only benefit one individual company but also the overall domestic media ecosystem.
For further information, please contact the Public Relations Division (E-mail: email@example.com) of the Ministry of Science and ICT.
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