Content industry in crisis…KRW 6 trillion market without power due to THAAD & reverse discrimination
[ Kim Soo Yeon newsnews@ ] | 2017-09-06 10:55:43
Issue analysis: Content industry in crisis, is it OK?
The Korean content industry, which has been attracting attention as one of the next generation growth engines, is facing so called ‘iceberg’ crisis. While each country is pursuing an aggressive strategy to target the content market, a new market that will be triggered by the Fourth Industrial Revolution, the Korean content industry is in a deep sense of crisis that it can lag behind in world market competition. The Digital Times looks into the crisis situation of the Korean contents industry three times and the solution to solve it.
According to the contents industry on September 5, the content industry in Korea is currently outraged due to the uncertainties caused by the high-level conflicts in the high-altitude missile defense system (THAAD), causing the political movement, regulation and reverse discrimination and the taxation environment of the United States. Rather, it is coming back from inside and outside the industry.
In fact, the content export amount in the first quarter of this year is KRW 4.4 trillion, which is 4.7 % lower than the same period of last year, due to the influence of the "Sanction toward Korea" China is the largest export market, accounting for 27% (KRW 1.6 trillion) of our content export (KRW 6 trillion, below 2015). Concerns over inflation in China`s content exports are on the rise. China is increasing the level of criticism aimed at South Korea by leading the government and high-ranking government officials with the decision of the South`s 4th extra provisional deployment in response to North Korea`s missile provocation.
The contentious company of our content company is hit hard. In the case of Naver, Line Games, a subsidiary of Line and China`s Longtu Game, has prepared the next game to be launched after the first game (line pop 2) but has not been able to catch up with the launch of the online game ‘Tera’. This is because China does not give a license (service license) to mobile games made with Korean game intellectual property (IP) in connection with Sad issue. Beijing Kakao, which was established by Kakao for the Chinese game market, failed to release new games since February last year. Especially, in the case of Kakao, it is preparing for the business of the Kakao pay-alipay aimed at Chinese tourists. Domestic game companies such as Net Marble Games are also revising their strategy to show their games to other markets such as Japan.
It is difficult to find hope in Korea as it is hard outside. As the work to erase the color of the former government that prefers the `cultural prosperity` is proceeding at the same time, the contents industry is treated as a `child to hide`. Park Geun-hye and Choi Soon-sil are contents that are hit with direct criticism of the situation of the farm agriculture in the country. It was revealed that Cha Eun-taek, a close associate of Choi Seon-sil, had embarked on the head of the Culture Creation and Convergence Headquarters, which is the organizing organization for cultural fusion fusion belt business of the former government, and that Cha Eun-taek intervened in the appointment of Director of Korea Content.
In the meantime, the new government has reduced the number of content support projects and reduced the content business budget of the Ministry of Culture, Sports and Tourism. The Ministry of Culture, Culture and Content Industry, which oversees the government`s content policy, has also been eliminated. As a result, the highest ranking of the cultural contents industry practitioners in the Ministry of Culture and Tourism has been lowered from the first-class public servant to the second-class public servant. Besides, regulatory issues such as the game shutdown system (forcing late-night youth to block online game access) and online game settlement limit (adult-grade KRW 500,000 per month) are not resolved. In addition, we are dropping the morale of our content companies by adding taxation environments that reverse discriminate domestic content companies. Multinational corporations, such as Google and Facebook, who are making huge profits in Korea, are registered as limited companies in Korea and do not disclose their management status or pay taxes on their sales made by domestic services. The revision of the corporate tax law that strengthens the taxation on multinational corporations has been initiated by the Planning and Finance Committee, and the Act on External Audit of Stock Companies (Externality Act) has been initiated by the Treasury Committee, but it is still pending.
Professor Jeong Eou-kook, professor of cultural contents at Konkuk University, stated, "It is time for our contents industry to take special measures so it can overcome internal and external crises ." The committee also decided to reduce cultural contents related organizations as it is not desirable to move along."
By Kim Soo Yeon newsnews@
[ copyright ⓒ The Digitaltimes ]
The Korean content industry, which has been attracting attention as one of the next generation growth engines, is facing so called ‘iceberg’ crisis. While each country is pursuing an aggressive strategy to target the content market, a new market that will be triggered by the Fourth Industrial Revolution, the Korean content industry is in a deep sense of crisis that it can lag behind in world market competition. The Digital Times looks into the crisis situation of the Korean contents industry three times and the solution to solve it.
According to the contents industry on September 5, the content industry in Korea is currently outraged due to the uncertainties caused by the high-level conflicts in the high-altitude missile defense system (THAAD), causing the political movement, regulation and reverse discrimination and the taxation environment of the United States. Rather, it is coming back from inside and outside the industry.
In fact, the content export amount in the first quarter of this year is KRW 4.4 trillion, which is 4.7 % lower than the same period of last year, due to the influence of the "Sanction toward Korea" China is the largest export market, accounting for 27% (KRW 1.6 trillion) of our content export (KRW 6 trillion, below 2015). Concerns over inflation in China`s content exports are on the rise. China is increasing the level of criticism aimed at South Korea by leading the government and high-ranking government officials with the decision of the South`s 4th extra provisional deployment in response to North Korea`s missile provocation.
The contentious company of our content company is hit hard. In the case of Naver, Line Games, a subsidiary of Line and China`s Longtu Game, has prepared the next game to be launched after the first game (line pop 2) but has not been able to catch up with the launch of the online game ‘Tera’. This is because China does not give a license (service license) to mobile games made with Korean game intellectual property (IP) in connection with Sad issue. Beijing Kakao, which was established by Kakao for the Chinese game market, failed to release new games since February last year. Especially, in the case of Kakao, it is preparing for the business of the Kakao pay-alipay aimed at Chinese tourists. Domestic game companies such as Net Marble Games are also revising their strategy to show their games to other markets such as Japan.
It is difficult to find hope in Korea as it is hard outside. As the work to erase the color of the former government that prefers the `cultural prosperity` is proceeding at the same time, the contents industry is treated as a `child to hide`. Park Geun-hye and Choi Soon-sil are contents that are hit with direct criticism of the situation of the farm agriculture in the country. It was revealed that Cha Eun-taek, a close associate of Choi Seon-sil, had embarked on the head of the Culture Creation and Convergence Headquarters, which is the organizing organization for cultural fusion fusion belt business of the former government, and that Cha Eun-taek intervened in the appointment of Director of Korea Content.
In the meantime, the new government has reduced the number of content support projects and reduced the content business budget of the Ministry of Culture, Sports and Tourism. The Ministry of Culture, Culture and Content Industry, which oversees the government`s content policy, has also been eliminated. As a result, the highest ranking of the cultural contents industry practitioners in the Ministry of Culture and Tourism has been lowered from the first-class public servant to the second-class public servant. Besides, regulatory issues such as the game shutdown system (forcing late-night youth to block online game access) and online game settlement limit (adult-grade KRW 500,000 per month) are not resolved. In addition, we are dropping the morale of our content companies by adding taxation environments that reverse discriminate domestic content companies. Multinational corporations, such as Google and Facebook, who are making huge profits in Korea, are registered as limited companies in Korea and do not disclose their management status or pay taxes on their sales made by domestic services. The revision of the corporate tax law that strengthens the taxation on multinational corporations has been initiated by the Planning and Finance Committee, and the Act on External Audit of Stock Companies (Externality Act) has been initiated by the Treasury Committee, but it is still pending.
Professor Jeong Eou-kook, professor of cultural contents at Konkuk University, stated, "It is time for our contents industry to take special measures so it can overcome internal and external crises ." The committee also decided to reduce cultural contents related organizations as it is not desirable to move along."
By Kim Soo Yeon newsnews@