The Korean animation industry is to receive over $1 billion (KRW1.5TN) in government support over the next five years to address the challenges of this sector, focusing on theatrical releases, global streamers and IP strong franchises.
The Ministry of Culture, Sports and Tourism has launched today (April 24th) a “Master Plan for Promotion of the Animation Industry” which will invest in the sector by 2029.
The initiative shows a significant pivot in Korean animation, surpassing traditional focus on preschool content and television first format. The new strategy highlights IP-based theatrical releases, global streaming platforms, and franchises. It aims to address long-standing structural limitations, such as a narrow audience base, a broadcast-dominated ecosystem, and a low production budget.
In 2023, the Korean animation industry generated $767 million in revenue (KRW1.1TN), an increase of 23% year-on-year. By 2030, the government is aiming to raise that number from $10 million to $170 million, raising it to $1.3 billion (KRW1.9TN).
The government’s plans follow an increase in the number of animated box office revenues in Korea. Colorful fantasy features Heart: The Teen of Love After being released in August 2024, it received $7.7 million from 1.24 million admissions, making it the second-best selling animated film in his country since 2011 Leafy: Chicken in the wild.
Recently, faith-based animation King of KingsDirector Jang Seong-Ho opened second in the US box office in mid-April, earning more than $52.5 million worldwide to date. Meanwhile, Netflix is set to launch the first Korean animation feature Lost in Starlight May 30th.
The Ministry of Culture has also announced plans to launch a $140 million (KRW200BN) Animation Fund this year with the goal of expanding to $1 billion (KRW1.5TN) over five years. The new cash rebate system will refund some of the production costs of international co-productions that meet national execution benchmarks. This is an incentive designed to attract foreign investment in Korean animation projects.
To further strengthen overseas expansion, South Korea will debut the national pavilion in major animation markets in China and Southeast Asia, the ministry said.
Localization support, including dubbing, subtitles and regional marketing, is managed through the government’s global network of Korean Cultural Centre and K Content Business Hub.
The ministry has also announced the development of an AI-based production ecosystem that includes government-funded Korean-style training datasets in video content. The new policy framework supports virtual humans, AI-generated shorts, and emerging media formats.
Working with universities and creative institutions, the ministry is working to train a new generation of animation writers, producers and AI-savvy creators. The ultimate goal is to build a full-spectral content pipeline, from IP concepts and storytelling to global distribution and franchise merchandising.
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