South Korea’s government has earmarked US$108 million in its 2026 budget for the local film business—which is in the midst of a worrying downturn.

The Ministry of Culture, Sports and Tourism announced the package earlier this month, and it represents an 80.8% jump from the current year’s allocation. It’s also now the government’s largest-ever allocation to the film industry, excluding 2022’s pandemic-era relief packages. 

While it still needs to pass a parliamentary vote, the budget bump appears to be a much-needed intervention. 

Despite the global domination of K-content and Korean-inspired media (like 2025’s breakout animated movie KPop Demon Hunters) in recent years, the country’s entertainment sector has been bogged down by reduced local support for film festivals and indies, the lowest recorded ticket sales since 2004 and a significant drop in new productions and releases.

Culture minister Choi Hwi-young likened the new budget plan to emergency response CPR required to save the industry. At an early September press event, he highlighted how the number of local movies with production costs above US$2.1 million is less than 20 this year, compared with about 100 in the past.

Despite its recent struggles, South Korea is a big player in the kids media landscape. Recent family-friendly movies from the country include Netflix titles like teen rom-com Love Untangled (pictured) and the platform’s first animated Korean original pic, Lost in Starlight. And theatrical releases from Korean studios include Bebefinn Sing-Along Movie (Pinkfong) and The King of Kings (Mofac Animation).

The Korea Herald has outlined more specifics on how the new allocation will be split up. It will include US$5.7 million for planning and development, a new fund of US$1.2 million to support production companies with proven track records and roughly US$50 million to be funneled into the film account of the Korea Creative Content Agency, which provides loans to companies producing film and other media.

Earlier this year, local studios expressed relief when the South Korean government initiated plans to invest US$1 billion into the country’s animation business over the next five years.

Image courtesy of Seo-Ji-hyung/Netflix