South Korean Minister Explores Southeast Asian Expansion for Indigenous OTT

South Korean Minister Collaborates with Domestic Industry to Explore Expansion into Southeast Asia for Indigenous OTT

South Korean Minister of Culture, Sports, and Tourism, Yoo In-chon, has fulfilled his promise to support indigenous Over-The-Top (OTT) online video services by collaborating with the domestic industry to explore opportunities for expansion into Southeast Asia. In a meeting with representatives from major domestic OTT platforms, Minister Yoo emphasized the importance of revitalizing indigenous OTT services, stating that failure to adapt to the changing environment of the content industry would result in falling behind.

Supporting Collaboration between Content Producers and Platforms

The meeting focused on the topic of supporting collaboration between content producers and platforms. Park Tae-hoon, the CEO of Watcha, suggested that direct support from platforms could create a positive cycle of investment in content production. Meanwhile, Lee Tae-hyun, the CEO of Wave, proposed matching 2-3 production companies with OTT platforms to expedite the support process. The participants also discussed the 1 trillion won ($900 million) “K-Content Strategic Fund” announced by Minister Yoo last month, expressing their support for the fund and emphasizing the need for localization support, such as subtitling and music rights, to facilitate global expansion.

Preparing for Global Expansion and Localization Support

Choi Ju-hee, the CEO of Tving, highlighted the high demand for Korean content in Southeast Asia and suggested the establishment of an Asian country fund to facilitate collaboration. In response, Kang Soo-sang, the Director of the Media Policy Division at the Ministry of Culture, Sports, and Tourism, mentioned the existing 5 billion won ($4.5 million) program for localization support and expressed plans to further expand and prepare for business collaborations with Southeast Asian countries. Minister Yoo expressed his positive outlook on the possibility of quick decisions regarding fund investments and the potential for an Asian country fund, considering South Korea’s global presence and financial capabilities.

Discussion on Tax Deductions and Platform Opinions

In addition to the main topics, the meeting also touched on tax deductions related to OTT subscription fees and production costs. Minister Yoo expressed concerns about the disclosure of platform revenues and sought the opinions of platform representatives. The majority of platforms responded positively, indicating that there is room for discussion.

Conclusion

Minister Yoo In-chon has taken concrete steps to fulfill his promise of supporting indigenous OTT services in South Korea. By collaborating with the domestic industry and exploring opportunities for expansion into Southeast Asia, the government aims to revitalize the indigenous OTT sector and ensure its competitiveness in the global content market. The discussions during the meeting highlighted the importance of collaboration between content producers and platforms, the need for localization support, and the potential for a dedicated fund to facilitate Asian country collaborations. The government also expressed its commitment to addressing concerns regarding tax deductions and platform revenues. With these efforts, South Korea aims to strengthen its position in the global content industry and promote the success of its indigenous OTT services.