Tax Incentives & Grants - South Korea

South Korea has solidified its reputation as a global hub for film and television production through its robust incentives, advanced infrastructure, and diverse filming locations. The government, along with local film commissions, offers a range of financial support programs to attract international productions.

South Korea’s 30% cash rebate program, combined with its modern infrastructure, skilled workforce, and diverse locations, makes it a prime destination for international filmmakers. With strong government support and a growing global presence, South Korea offers both financial and creative advantages for productions seeking a dynamic filming environment. Its blend of tradition and innovation ensures that projects filmed in South Korea resonate on a global scale.

Here’s a detailed breakdown of South Korea’s film production incentives and the advantages of filming in the country:

  • Overview

    The Korean Film Council (KOFIC) offers a cash rebate of up to 30% on qualifying production expenditures, aimed at supporting foreign productions and promoting South Korea as a filming destination.

    Key Features

    • Rebate Rate: Up to 30% on qualified Korean production expenditures (QPE), which include goods, services, and labor costs incurred in Korea.

    • Eligibility:

      • A minimum spend of KRW 100 million (~USD 90,000) is required.

      • Productions must have at least 5 shooting days in South Korea.

    • Application Process:

      • Applications are submitted through a local production company or legal entity registered under Korean law.

      • Applications must include a detailed shooting schedule, budget breakdown, and script.

    Qualifying Expenses

    Eligible costs include:

    • Location fees.

    • Crew wages.

    • Set construction and equipment rentals.

    • Accommodation and local transportation.

    Additional Requirements

    • Productions are required to provide screen credits acknowledging support from KOFIC.

    • Projects must demonstrate cultural or economic benefits for South Korea.

  • South Korea’s regional film commissions supplement the national incentives by offering additional rebates and logistical support for productions filmed in their respective areas.

    a. Seoul Film Commission Incentive

    • Rebate Rate: Up to 30% of production costs spent in Seoul.

    • Eligibility:

      • Productions must film for at least 4 days in Seoul.

      • Expenses must exceed KRW 100 million (~USD 90,000).

    • Maximum Grant: Up to KRW 300 million (~USD 265,000).

    • Special Benefits:

      • Support for location scouting.

      • Assistance with permits and coordination with local authorities.

    b. Incheon Film Commission Incentive

    • Rebate Rate:

      • 50% rebate for productions filming more than 15 days in Incheon.

      • 40% rebate for productions filming between 10-15 days.

      • 30% rebate for productions filming between 5-10 days.

    • Maximum Grant: Up to KRW 100 million (~USD 88,000).

    c. Busan Film Commission

    • Busan, known as the “Film Capital of Korea,” offers logistical support, location incentives, and access to advanced production facilities like Busan Cinema Studios.

    d. Jeju Film Commission

    • Jeju Island, renowned for its scenic beauty, provides rebates and support for productions showcasing the island.

  • Steps to Apply

    1. Engage a Local Production Partner:

      • A South Korean production company must handle the application process on behalf of the international producer.

    2. Submit Application:

      • Include a detailed budget, production schedule, and script.

      • Ensure the project meets the minimum spend and shooting day requirements.

    3. Approval Process:

      • Applications are reviewed by KOFIC or the respective regional film commission.

      • Approval timelines vary but typically take several weeks.

    4. Post-Production Audit:

      • Expenses are audited to verify qualifying production expenditures before the rebate is disbursed.

    Timing

    • Applications must be submitted at least 30 days and no more than 90 days before the start of filming.

  • Opportunities

    • Expanding Film Market:

      • South Korea’s growing influence in global media provides opportunities for co-productions and international collaborations.

    • Global Distribution:

      • Korean films and TV shows have gained immense popularity through platforms like Netflix, offering global exposure for projects filmed in South Korea.

    • Cultural Synergy:

      • South Korea’s rich cultural heritage and modernity create unique storytelling opportunities.

    Challenges

    • High Competition:

      • Limited budgets for incentive programs mean early application is critical to secure funding.

    • Regulatory Compliance:

      • Navigating local laws and regulations may require extensive collaboration with Korean production partners.