Korea’s culture ministry is taking dramatic measures to revive the domestic film industry, saying this month that it was increasing its 2026 budget for sector support by about 81% compared to 2025.

The initiative – in response to film industry pleas –  takes funding from KRW 82.9 billion/US$59.7 million to just under KRW150 billion/US$108 million. 

This is said to be the largest purse on record outside of the 2022 Covid emergency support measures. 

At a media briefing in Seoul this month, new Culture, Sports and Tourism Minister, Chae Hwi-young, said films produced in the KRW3 billion/US$2.16 million range had collapsed to about 20 this year from past annual highs of 100. The minister blamed lower investment and shrinking cinema attendance.

Among other projects, the government budget will be used to support indie and other smaller films, and a new KRW 16.4 billion/US$11.8 million virtual production studio in Busan. 

Mid-budget production support will double to KRW 20 billion/US$14.4 million, and development funding has been increased to KRW 8 billion/US$5.8 million from just under KRW5 billion/US$3.6 million. 

About KRW2.2 billion/US$1.6 million has been allocated for AI production. 

Ministry heavyweights are being quoted as saying that their “unwavering” support will return the Korean film industry to its former glory at the centre of the Hallyu wave. 

The measures come just ahead of the opening of the Busan International Film Festival (BIFF) tomorrow evening (16 Sept). The festival programme runs from 17-26 Sept. A total of 87 titles (42 features & 45 shorts) will screen during the week.

Correction: The version of the ContentAsia eNewsletter sent on 15 September 2025 included an incorrect currency conversion. Government support for Korean films in the KRW 3 billion budget range should have been converted to US$2.16 million, not US$21.6 million. The story above has been updated to reflect the correct amount. All other conversions are correct. Apologies for any inconvenience caused.