and changed at will—for example, to take the shape of traditional Korean
designs—without the use of CGI. “It’s very tricky, but we’re developing it,” said Choi.
These technological feats are developed in cooperation with ETRI—Electronics and Telecommunications Research Institute—a Korean think tank and technology lab in the southern city of
Daejon. They also work with the Korean Culture Technology Institute, a research and development laboratory dedicated to Korean culture technology, based in the southwestern province of Gwangju.
Both are government-owned. Yeah. The Korean government owns the local equivalent of Industrial Light and Magic.
That said, Choi disagreed with my characterization that the government was the invisible hand behind Hallyu: “The Korean Wave is not guided by the Korean government; we just serve a
coordinating function.”
Pop culture is such a high priority for President Park Geun-hye that, shortly after taking office in early 2013, she upgraded Choi’s team from a small task force to an entire division.
Many other countries have government arts funding, but how many governments finance popular culture—or create a $1 billion investment fund to nurture it?
The ministry has three other cultural content industry divisions: one for video games, one for television, and one for cultural industry policy. Collectively, they are called the Cultural
Content Office. Choi explained their role: “To create an ecosystem for all creators to play in a fair manner, with fair compensation. [We are] the rule setters.” The cultural content
divisions’ most important role is protecting intellectual property and prosecuting copyright infringers. The ministry develops policies to penalize illegal file sharing of music, shows,
movies, and published material; violators can be stripped of Internet service for six months. Every time someone sings a song in a
noraebang
, or karaoke room, the artist is supposed to
receive royalties. Choi’s division writes those policies.
After the Asian financial crisis, President Kim Dae-jung created a special fund to create the Cultural Content Office. The initial annual bud get was $50 million; now, said Choi, it’s
around $500 million. Choi’s own budget is 10 percent of that total budget, or $50 million. Choi said the Cultural Content Office is now the “nucleus” of Korea’s soft-power
strategy.
Naturally, bud get management and fund disbursement is a day-to-day part of the job. The Cultural Content Office has two budget controls. One is spending on cultural projects: for Choi, that
comes out of his $50 million annual budget. But that’s not even close to being enough money to achieve Korea’s pop cultural ambitions.
Hence the second means of funding for the Korean culture machine: an investment fund—not to give free grants, but a for-profit fund, very much aimed at making high returns. Currently the
fund size is a staggering $1 billion. That entire fund is earmarked just for the Korean pop culture industry; it does not include the fine arts like museums, opera, or ballet. (Those industries are
run by an entirely separate division. Koreans take culture very seriously.)
According to Choi, about 20 to 30 percent of the fund comes from the Korean government; the rest of the monies are from investment banks and private companies, such as music labels. This fund
is, in turn, operated by the Korean Venture Investment Corporation (KVIC), made up of private-sector fund managers. “The fund invests mostly in film,” said Choi, “but also in
animation, music, and drama.”
Unsurprisingly, the cultural content industry divisions have a five-year plan: their aim, said Choi, is for the market size of the collective Korean cultural industry exports to reach $10
billion—more than double the current figure. That’s a tall order.
The Ministry of Culture oversees projects on a level of detail you could not imagine: for example, regulating
designs—without the use of CGI. “It’s very tricky, but we’re developing it,” said Choi.
These technological feats are developed in cooperation with ETRI—Electronics and Telecommunications Research Institute—a Korean think tank and technology lab in the southern city of
Daejon. They also work with the Korean Culture Technology Institute, a research and development laboratory dedicated to Korean culture technology, based in the southwestern province of Gwangju.
Both are government-owned. Yeah. The Korean government owns the local equivalent of Industrial Light and Magic.
That said, Choi disagreed with my characterization that the government was the invisible hand behind Hallyu: “The Korean Wave is not guided by the Korean government; we just serve a
coordinating function.”
Pop culture is such a high priority for President Park Geun-hye that, shortly after taking office in early 2013, she upgraded Choi’s team from a small task force to an entire division.
Many other countries have government arts funding, but how many governments finance popular culture—or create a $1 billion investment fund to nurture it?
The ministry has three other cultural content industry divisions: one for video games, one for television, and one for cultural industry policy. Collectively, they are called the Cultural
Content Office. Choi explained their role: “To create an ecosystem for all creators to play in a fair manner, with fair compensation. [We are] the rule setters.” The cultural content
divisions’ most important role is protecting intellectual property and prosecuting copyright infringers. The ministry develops policies to penalize illegal file sharing of music, shows,
movies, and published material; violators can be stripped of Internet service for six months. Every time someone sings a song in a
noraebang
, or karaoke room, the artist is supposed to
receive royalties. Choi’s division writes those policies.
After the Asian financial crisis, President Kim Dae-jung created a special fund to create the Cultural Content Office. The initial annual bud get was $50 million; now, said Choi, it’s
around $500 million. Choi’s own budget is 10 percent of that total budget, or $50 million. Choi said the Cultural Content Office is now the “nucleus” of Korea’s soft-power
strategy.
Naturally, bud get management and fund disbursement is a day-to-day part of the job. The Cultural Content Office has two budget controls. One is spending on cultural projects: for Choi, that
comes out of his $50 million annual budget. But that’s not even close to being enough money to achieve Korea’s pop cultural ambitions.
Hence the second means of funding for the Korean culture machine: an investment fund—not to give free grants, but a for-profit fund, very much aimed at making high returns. Currently the
fund size is a staggering $1 billion. That entire fund is earmarked just for the Korean pop culture industry; it does not include the fine arts like museums, opera, or ballet. (Those industries are
run by an entirely separate division. Koreans take culture very seriously.)
According to Choi, about 20 to 30 percent of the fund comes from the Korean government; the rest of the monies are from investment banks and private companies, such as music labels. This fund
is, in turn, operated by the Korean Venture Investment Corporation (KVIC), made up of private-sector fund managers. “The fund invests mostly in film,” said Choi, “but also in
animation, music, and drama.”
Unsurprisingly, the cultural content industry divisions have a five-year plan: their aim, said Choi, is for the market size of the collective Korean cultural industry exports to reach $10
billion—more than double the current figure. That’s a tall order.
The Ministry of Culture oversees projects on a level of detail you could not imagine: for example, regulating
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