The plan was announced by Minister of Cultureand Tourism Jeong Dong-chae this morning (Jan 27) as a counter-measureto the halving of
The support plan will createa $400m fund - with $200m coming from the national treasury and the other $200mcoming from a 5% tax levied on film tickets. The national treasury will pay outthe $200m over two years starting in 2007 and the ticket tax will be put intoforce starting
Minister Jeong stated thegovernment wanted to move "beyond passive market protection" with a moreaggressive development policy that would increase diversity and internationalcompetitiveness. "The government considers the film industry a future coreindustry," he said.
The minister cited a bevy ofcore issues to address concerning the film industry such as tax breaks forinvestors, support for the production and distribution of independent/arthousefilms, improvement of working conditions for production crews and the creationof a centre for overseas promotion strategies and co-productions.
The minister askedfilmmakers to "gather their wisdom" and work with the government to solve theseproblems, not neglecting to cite the adjustment of profit-sharing rates betweenproducers and exhibitors, which are 50:50 for US films while 40:60 for Koreanfilms, with only 40% of box office profit going to the producer.