"I was shocked by the budget proposal for 2027." On October 13, during a meeting of the Animation Subcommittee of the Cultural Arts Policy Advisory Committee, chaired by Minister of Culture, Sports and Tourism Choi Hwi-young at the National Museum of Modern and Contemporary Art in Seoul, industry representatives expressed concerns over the budget cuts for the animation sector.
The animation budget has been reduced from 39 billion won this year to 33.8 billion won next year, a decrease of 5.2 billion won (approximately 13%).
Kim Moon-joo, president of the Korea Animation Producers Association, expressed disappointment, stating, "While the film sector has seen a relative increase in funding, the animation budget has been cut." He emphasized that the animation industry surpasses the film industry in terms of per capita export value and employment size, adding, "It seems the government is not aware of this."
Participants at the meeting called for an increase in the investment ratio of the Fund of Funds and a greater share of animation support from the Film Promotion Fund. Kim highlighted the significant increase in animation's share of the overall box office and argued for a restructuring of the funding system, which is currently focused on live-action films.
Concerns were also raised about the overseas outflow of domestic animation talent and intellectual property (IP). The recent launch of Crunchyroll, the world's largest animation-focused streaming service, in South Korea has drawn attention to its potential impact on the local animation market.
Professor Han Chang-wan from Sejong University noted, "Students and creators in related fields are increasingly publishing their works with companies like Kodansha in Japan, believing that recognition of their IP value will expedite the production of animations or dramas and facilitate entry into the U.S. market." He mentioned that specialized classes for entering the Japanese market have even been established at universities.
Han predicted changes in the domestic content consumption market due to Crunchyroll, stating, "Creators are contemplating how to upload their works to Crunchyroll and are working on animations targeting the Japanese market." He added, "The nationality of IP is becoming blurred," and criticized the notion that Korean webtoon IP is the core of K-culture as outdated. He emphasized the importance of developing original IP as a foundation for animation production alongside strategies for entering the Japanese market.
Additionally, there were calls for expanded support for the use of artificial intelligence (AI). Jo Kyung-hoon, president of the Korea Animation Industry Association, stated, "In the future, AI credits or voucher support programs will become crucial," urging the creation of a structure that allows animation studios to utilize AI at lower costs.
Minister Choi remarked, "The webtoon industry is also strongly advocating for the need for animation adaptations," emphasizing that animation and webtoons must progress together. He pledged to strengthen the connection between the two industries and enhance the competitiveness of original IP.
* This article has been translated by AI.
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