Government to Establish 150 Billion Won K-Culture Fund... Expanding Large-Scale Content Investment

Investment of 100 Billion Won in AI and IP, 50 Billion Won in Content Innovation
National Growth Fund Makes Its First Contribution to a Government Policy Fund

The government will newly establish the ‘K-Culture Value-Up Fund’ worth 150 billion won to provide large-scale funding to companies specializing in artificial intelligence (AI), intellectual property (IP), and content. This marks the first case in which the National Growth Fund invests in a government policy fund, raising expectations that a solid foundation for investing in large-scale content production—which requires significant costs—will be created.

The Ministry of Culture, Sports and Tourism and the Financial Services Commission announced on July 22 the recruitment of management companies for the K-Culture Value-Up Fund. After receiving proposals by August 12, the final management companies will be selected in September. The fund will be formed with 50 billion won from the Ministry of Culture, Sports and Tourism, 30 billion won from Korea Development Bank and the Advanced Strategic Industry Fund, and at least 70 billion won in private capital, totaling 150 billion won.

Until now, the cultural and content sectors have operated funds such as the Korea Venture Investment Fund’s culture and film account and the K-Content Media Strategic Fund, but most have been around 50 billion won in size, making it difficult to invest in large-scale content. This time, with the participation of Korea Development Bank and the Advanced Strategic Industry Fund, the fund’s size has increased to three times the previous level, enabling large-scale investments in individual projects.

The fund will be managed in two sectors: the AI and IP sector (100 billion won) and the content innovation sector (50 billion won). The AI and IP sector will invest in content production using AI technology and in businesses based on content IP, such as games, video, and music. The content innovation sector will support content production and distribution companies. Both sectors are required to invest 15–25% of the total capital in the content field, thereby expanding support through policy finance.

This initiative is significant in that it represents the first case of the National Growth Fund expanding its scale through cooperation with a government ministry’s policy fund. The Ministry of Culture, Sports and Tourism and the Financial Services Commission plan to boost the industrial ripple effects of K-content—as webtoons and games are adapted into dramas, movies, and performances, eventually leading to increased exports of tourism and consumer goods—and to strengthen the global competitiveness of the sector.

Korea Growth Investment Corporation, the operator of the parent fund, plans to hold an investor presentation in the near future.

Kim Kyunghwa, Director-General for Cultural Industry Policy at the Ministry of Culture, Sports and Tourism, stated, "This is the first case where the National Growth Fund is joining forces with the ministry’s policy fund," adding, "We hope K-Culture becomes a stepping stone not only for national growth, but also for advancing into the global market." Son Youngchae, head of the National Growth Fund Task Force at the Financial Services Commission, commented, "We will continue to expand cooperation with policy funds from other ministries to make large-scale investments possible."

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