Gyeonggi Province announces plan to create Gyeonggi Cultural Contents Creative Fund in first half of year

Gyeonggi Province plans to create a KRW 25 billion fund for companies related to cultural contents such as games, films and dramas. The photograph shows the GOOD GAME SHOW KOREA 2013 exhibition. ⓒ Gyeonggi G-News Heo Seon-ryang

Gyeonggi Province plans to create a fund of KRW 25 billion for companies related to cultural contents such as games, films and dramas. 

Gyeonggi Province announced on January 6 that it will create the Gyeonggi Cultural Contents Creative Fund to foster cultural contents companies in the province during the first half of this year, and that it will start recruiting managers starting in March. 

The Gyeonggi Cultural Contents Creative Fund will amount to at least KRW 25 billion with a provincial investment of KRW 10 billion and private investments of at least KRW 15 billion; it will be operated for a total of seven years including a five-year investment period and two-year management period. With the Gyeonggi Content Agency appointed as the assignee, Gyeonggi Province will contribute KRW 10 billion from the Gyeonggi Province SME (small and medium-sized enterprises) Promotion Fund. 

Investment subjects of the fund will be contents companies with KRW 500 million to 10 billion in annual average sales over three years. Contents developers are its main subjects, and contents distributors are also included. The province is obligated to invest at least 60% of fund allocations to growing and outstanding cultural contents companies in the province per an investment committee’s review, while the remaining 40% will be invested autonomously to enhance the earning rates of fund managers.

Accordingly, Gyeonggi Province plans to recruit managers through the Gyeonggi Content Agency in March and April, and to complete a fund establishment report within the first half of the year.

“This fund switches the financing method for cultural contents companies from financing (loans) to funds,” said Kim Geon-joong, Director of Gyeonggi Province’s Cultural Industry Division. “It is significant in that passive investment in cultural contents companies is transformed into active investment.”

Gyeonggi Province expects this exclusive fund for contents companies to contribute to fostering the stable growth of such companies and to creating employment through customized investment in each company.

ⓒGyeonggi G-News | Park Gwan-sik malbut@kg21.net 

http://gnews.gg.go.kr/news/news_detail.asp?number=201401061331287055C049&s_code=C049