Shedding Light on K-pop Polarization... Ministry to Introduce Tax Credits for Music Production Costs

Discussion on Supporting Small and Mid-Sized Agencies and Fostering Indie Music

Choi Huieong, Minister of Culture, Sports and Tourism. Photo by Yonhap News Agency

The Ministry of Culture, Sports and Tourism is planning to introduce tax credits and loan programs for music production costs in order to support small and mid-sized agencies in the popular music sector as well as foster indie music.

On July 8, the Ministry, led by Minister Huiyoung Choi, will hold an on-site roundtable meeting on "Strengthening the Music Industry Ecosystem" with popular music agencies and related associations. Agencies such as Mystic Story, CAM WithUs, RBW, FNC Entertainment, and EMA, as well as related organizations including the Korea Popular Music Industry Association and the Korea Popular Music Performance Industry Association, will be in attendance.

This roundtable aims to identify the structural limitations of the popular music industry and seek solutions. In 2025, the music industry's sales are projected to increase by 15.4%, and exports by 32.4% compared to the previous year, ranking first in growth rate among all content sectors. However, rising production costs, genre concentration, widening gaps between large and small/mid-sized companies, and lack of performance infrastructure are cited as factors hindering growth.

The Ministry plans to focus its support on small and mid-sized agencies, which play a central role in the industry. The "Global Leap Support for Small and Mid-sized Agencies" program, which selected 10 teams this year, will be expanded in scale.

Plans to foster indie music will also be discussed. The goal is to nurture indie music, which serves as a hub for discovering new talent and revitalizing local culture, and to broaden the current focus from "K-pop" to "K-music" as a whole.

Minister Choi stated, "For the music industry to continue its growth, small and mid-sized agencies—the backbone of the industry—must remain active," adding, "We will swiftly implement policies desired by the industry through continued dialogue with those on the ground."

This content was produced with the assistance of AI translation services.