Signs MOU with Korea Credit Guarantee Fund for K-content production financing

Deal to provide 10 billion won in guarantees for content planning, production and commercialization

A view of Busan Bank's headquarters [Busan Bank]
A view of Busan Bank's headquarters [Busan Bank]

Busan Bank has signed a "K-Content Productive Financial Support" MOU with the Korea Credit Guarantee Fund to expand financing for cultural content production companies.

The agreement is designed to help financially viable cultural content firms secure stable funding while broadening the growth base of the regional cultural industry, the bank said Wednesday. Busan is particularly well positioned for such an initiative, given its established content industry infrastructure spanning film, video and other media — anchored by the Busan International Film Festival.

Under the MOU, Busan Bank will make a special contribution of 500 million won ($368,000) to the Korea Credit Guarantee Fund, which will use that capital to supply a total of 10 billion won in guarantees. The bank plans to continue providing financial support so that content companies operating in the region can grow on a stable footing. Eligible recipients include companies producing broadcast, film, game, webtoon, animation, character, music, performance and publishing content.

Support will be divided into two guarantee programs. The first, a completion guarantee for the cultural industry, helps content producers secure production funding based on pre-sale contracts signed with distributors. The second, a specialized cultural industry guarantee, covers funding needs across the planning, production and commercialization stages of content development.

Guarantees issued under the MOU will carry a 100 percent guarantee ratio for the first three years, with guarantee fees also reduced by 0.5 percentage points over the same period.


kaf2002@heraldcorp.com