The Korean version of Netflix will create a market worth 10 trillion won

The plan contains various supports including 10 trillion own for the domestic media market, 13.42 billion dollars for the content exports, and aid for at least five global platform companies.

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The Korean government is planning 1 trillion won of funds by 2024 to foster independent global media and young creators. Additionally, they will increase the domestic market scale up to 10 trillion won by 2022 and recruit global platform enterprises. 

Jeong Sae-Kyun, a prime minister of the Korean government, opened the 12th ICT Strategy meeting in Korean Government Complex Seoul, reviewed and passed five agendas regarding the matter on the 22nd. 13 civilian committees and 10 government committees attended the meeting.

The government will establish an independent media environment accordingly with the recent change in the media industry. For instance, independent media clusters will be formed to acquire spaces for public contents-creations, and 1 trillion-won amount of ‘Cultural Contents Funds’ that supports contents production and overseas expansion will be provided by 2024.

There will also be contents investment and foundation of production supports. By utilizing content production, logistics R&D, and terminal for exports, the government will promote the domestic OTT (Over the Top Service) platform and re-create the media contents for the overseas markets with larger supports on related areas. There will be additional tax credits to support costs on online video production.

Additionally, there will be some improvements to the current media policy in order to create “Korean Netflix”. For instance, the government will terminate the regulations that restrict the market share of OTT service under 1/3 of the cable service, while simplifying the M&A process in the broadcasting industry. While the Korea Media Rating Board has been authorizing the ratings of current online videos such as OTT service so far, it will be changed into an autonomous-ratings system.

Through these alterations, the Korean government aims to support the media industry by 2022, with the vision of “Digital Media Powerhouse with Innovative Growth”; 10 trillion won in the domestic media market, 134.2 billion dollars, and fostering at least five global platform enterprises.

This decision stems from the government’s concerns that the domestic media business might be damaged due to the rapid growth of global OTT services.

 The government emphasized that “While global media companies (Netflix, Fox, and etc) are expanding their services both in and outside of the country by strategic M&As and expansion of contents investments, the domestic companies are still struggling from the vertically regulated environment and unequal competition with global media.”

The global OTT market has increased its value from 17 trillion won in 2014 to 46 trillion won in 2018, surging 2.7 times. In 2023, the market is expected to grow until 85 trillion won. Thanks to the recent deregulations in the media industry, the government is expecting the market share up to 10 trillion won, and the amount of content exports up to 13.32 billion dollars (Approximately 16 trillion and 300 billion won) by 2022.

 The Way to Solve Digital Divide among Digitally Disadvantaged; 3D Printing & Fostering XR Human Resources

 The Korean government also began to solve digital divide problems among digitally disadvantaged groups such as seniors, peasants, disabled, and low-income class. Within this year, the government plans to enact a ‘Digital Embracing Law’ that aids to solve the problem and executes related policies and businesses.

There will be about 1000 of ‘Digital Ability Centers’ to reinforce digital ability for the underprivileged class. The center will provide the overall digital educations in daily lives such as booking mobile train tickets, finance, and online shopping. There will also be ‘visiting education’ for those who are unable to use their body.

In public spaces, the government will newly install about 41,000 Wi-Fi services and provide high-speed Internet in 1300 rural areas by 2022. The underprivileged class will be provided primarily with 10,000 Smart-Devices by 2021 and communication costs.

Following 2017, the fundamental plan to develop a 3-Dimensional (3D) Printing industry has been established, due to the rapid growth of 3D printer markets throughout high-profit markets.

According to Wohlers Associates, an institution that investigates 3D printers market, the market will increase from 9.795 billion dollars (11.9 trillion won) in 2018 to 35.57 billion dollars (43.2 trillion won) by 2024. Meanwhile, the domestic market only grew from 223 billion won in 2015 to 395.8 billion won in 2018.

The Korean government will demonstrate technologies in promising fields such as medical equipment and construction while applying 3D printing productions for mechanical parts in an industrial complex to discover successful models. In order to obtain potential technologies, the government will also support Intelligent Technology related to the field, attempting to obtain technological independence in major materials, equipment, and software. They will foster more than 500 human resources with master's and doctorate degrees by 2022 for improvements of the working environment.

Furthermore, plans were established to promote the Information Security Industry and provide education for Extended Reality (XR). The government will foster the security market accordingly with digital transformation and online communication to promote Information Security and expand security services based on Artificial Intelligence (AI). Moreover, by investing in Information Security in both the public and private sectors, they will improve restoration technology in private cyber networks.

The primary task at hand is to educate human resources in the XR industry such as VR and AR. There will be XR School that can recruit 7200 people with a master’s and doctorate degree by 2023, and educations about the latest technology and applications such as AI and Big Data will be provided for workers. University and High school students are also provided with fundamental education and vocational training.

The Korean government stated, “We aim to correspond efficiently to recent economic and social changes stemming from increasing online communication services and digital transformations. We also established policies regarding newly-emerging and developing industries like 3D Printing, Information Security, and XR contents.”