Korea Film Incentive Overview
The Korea Film Incentive provides up to a 30% cash rebate on eligible production expenses incurred in South Korea. Managed by the Korean Film Council (KOFIC), the Korea Film Incentive supports feature films, TV dramas, animation, and documentaries. To qualify for the Korea Film Incentive, productions must spend a minimum amount locally and use Korean vendors and facilities. The Korea Film Incentive includes cast and crew wages, location fees, and post-production services. With Korea’s robust creative industry and advanced infrastructure, the Korea Film Incentive continues to attract global productions.
Hoodlum Introduction
Hoodlum Film Fixers is your strategic partner in accessing the Korea Film Incentive. We ensure your project meets all Korea Film Incentive requirements, from budget thresholds to cultural eligibility. Our services include managing submissions to KOFIC, coordinating local crews, and structuring your finances to maximize the Korea Film Incentive. By working with Hoodlum, you’ll receive expert guidance at every step of the Korea Film Incentive process. Let us help you make the most of the Korea Film Incentive while focusing on your creative goals.
Incentives Offered
South Korea offers an attractive film rebate program to lure foreign productions. Here’s what you can expect:
Rebate Percentage:
- 20% base rebate for eligible productions
- Additional 5% uplift for projects shooting over 10 days and spending at least $613,500 (KRW 800 million)
- Eligible Expenditure: Qualified Production Expenditure (QPE) includes costs from pre-production to post-production stages, with some conditions:
- Post-production costs or labor costs for actors and staff must not exceed 50% of total QPE
- Total costs for main cast must not exceed 30% of total labor costs
Minimum and Maximum Spend:
- Minimum spend: $38,000 (KRW 50 million) for a 25% rebate; $613,500 (KRW 800 million) for a 30% rebate
- Maximum rebate per project: $153,000 (KRW 200 million)
- Annual budget cap: $248,500 (KRW 324 million)
Additional Requirements:
- Productions must shoot for at least 3 days in South Korea to qualify for the rebate
- Projects must receive approval from the Review Committee, evaluating factors like tourism promotion, contribution to the Korean film industry,and foreign engagement Screen credit is required
Eligibility Criteria
Eligibility Criteria for Korea Film Rebate
- Production Type: Feature films, TV dramas, documentaries, animations, and other formats may be eligible.
- Foreign Financing: Productions must be at least 80% foreign-financed.
- Shooting in Korea: Productions must shoot for at least 3 days in South Korea.
- Expenditure Threshold: Minimum spend requirements apply (e.g., KRW 50 million for a 25% rebate; KRW 800 million for a 30% rebate).
- Approval: Projects must receive approval from the Review Committee.
- Screen Credit: Productions must provide screen credit to qualify for the rebate.
Qualifying Expenditure:
- Location fees
- Crew and cast fees
- Equipment rental
- Post-production costs
What is the minimum QPE per project
The minimum Qualified Production Expenditure (QPE) per project in South Korea varies depending on the project type and agreement between countries.
General Minimum QPE:
- 50 million KRW for projects eligible for a 25% rebate
- 2 billion KRW for projects eligible for a 30% rebate
Co-Productions with Specific Countries:
50 million KRW, if the project is a co-production with countries that have signed a Memorandum of Understanding (MOU) or Memorandum of Agreement (MOA) with the Korean Ministry of Culture, Sports and Tourism or the Korean Film Council (KOFIC), such as Australia, India, France, EU, Japan, and New Zealand
Other Projects:
400 million KRW, for projects that require more substantial investment in Korea
Production categories accepted:
The Korean Film Rebate Scheme accepts the following categories of production for evaluation:
- Feature Films: Narrative or documentary films with a minimum runtime of 70 minutes, produced for public viewing in cinemas, screening facilities, or online streaming platforms.
- Series: Episodic dramas produced for television broadcast or online streaming, with episodes sharing a common theme or structure.
- Documentaries: Non-fiction films that provide information or insight on a particular subject or issue.
To be eligible, productions must:
- Shoot in Korea: Spend at least 5 days filming in Korea.
- Meet Expenditure Requirements: Spend a minimum of KRW 400 million on qualified production expenditures in Korea, or KRW 50 million for co-productions with countries that have signed an MOU/MOA with the Korean Ministry of Culture, Sports and Tourism or KOFIC.
- Utilize Korean Resources: Engage with Korean companies, locations, and human resources.
- Demonstrate Global Potential: Show potential for global success and artistic qualities.
Qualifying Production Expenditures (QPE)
Pre-Production Expenditures
The Korean Economic Development Board’s film rebate program considers the following pre-production expenditures as qualifying:
- Location Scouting: Costs of scouting and securing locations in Korea.
- Script Development: Costs of scriptwriting, research, and development.
- Casting: Costs of casting Korean actors and extras.
- Crew Assembly: Costs of hiring and assembling Korean crew members.
- Permits and Licenses: Costs of obtaining necessary permits and licenses for filming in Korea.
- Other Pre-Production Costs: Costs of other pre-production activities, such as storyboarding, budgeting, and scheduling.
Production Expenditures
Cast and Crew Salaries and Fees:
The following cast and crew salaries and fees are considered qualifying production expenditures:
Cast Salaries: Fees paid to Korean actors and extras for their services.
Fees paid to Korean crew members, including:
- Directors
- Producers
- Cinematographers
- Editors
- Other crew members
Professional Fees:
- Location managers
- Production designers
- Costumers
- Special effects experts
- Other professionals
Labour Costs:
The Korean Film Council (KOFIC) considers the following labour costs as qualifying production expenditures:
Cast and Crew Compensation: Salaries, fees, and benefits paid to Korean cast and crew members, including:
- Directors
- Producers
- Cast
- Crew members
Limitations: The expenditure for main casts exceeding 30% of total labor expenses cannot be validated as Qualifying Production Expenditure (QPE).
Equipment rental fees:
Equipment rental fees that qualify include:
- Camera and Lighting Equipment: Rentals for cameras, lenses, lighting, and grip equipment.
- Sound Equipment: Rentals for sound recording and playback equipment.
- Specialty Equipment: Rentals for specialized equipment, such as cranes, drones, or stabilizers.
- Other Production Equipment: Rentals for other equipment used in production, such as generators, tents, or catering equipment.
Location fees:
Location Rental Fees: Payments for using private or public locations in Korea, such as:
- Buildings
- Streets
- Parks
- Other locations
Location Management Fees: Fees paid to location managers or scouts for securing and managing locations.
Wardrobe and costume expenses:
Wardrobe and costume expenses that qualify include:
- Costume Purchases or Rentals: Costs of buying or renting costumes, clothing, and accessories.
- Wardrobe Department Salaries: Fees paid to wardrobe staff, including costume designers, supervisors, and assistants.
- Alterations and Maintenance: Costs of altering, cleaning, and maintaining costumes.
Set design and construction costs:
Set design and construction costs that qualify include:
- Set Design Fees: Fees paid to set designers, art directors, and other crew members for designing and planning sets.
- Set Construction Costs: Costs of building, constructing, and dressing sets, including materials and labor.
- Set Decoration: Costs of decorating and furnishing sets, including props and set dressing items.
Special effects and stunts expenses:
Special effects and stunts expenses that qualify include:
- Visual Effects (VFX): Costs of creating and integrating visual effects, such as CGI, animation, and compositing.
- Special Effects (SFX): Costs of creating and executing practical effects, such as pyrotechnics, smoke, and fog.
- Stunt Coordination and Execution: Fees paid to stunt coordinators, stunt performers, and other crew members for planning and executing stunts.
Catering ,craft and services costs:
Catering, craft, and services costs that qualify include:
- Catering: Costs of food and beverages for cast and crew.
- Craft Services: Costs of snacks, refreshments, and other amenities for cast and crew.
Production Services Fees paid for services such as:
- Craft coordination
- Location services
- Transportation
- Accommodation
These costs must be directly related to the production and incurred in Korea to qualify for the rebate.
Specialized Services:
Specialized services that qualify include:
- Animation and Visual Effects: Services related to animation, CGI, and visual effects.
- Sound Design and Post-Production: Services related to sound design, sound mixing, and post-production.
- Editing and Color Grading: Services related to editing, color grading, and picture finishing.
- Other Specialized Services: Other specialized services used in production, such as drone services, aerial photography, or motion control.
Accommodation and transportation costs for cast and crew:
Accommodation and transportation costs that qualify include:
- Accommodation: Costs of lodging, hotels, and other accommodations for cast and crew.
- Transportation: Costs of transporting cast, crew, and equipment, including:
- Airfare
- Vehicle rentals
- Fuel
- Driver fees
Travel:
Travel costs that qualify include:
- Airfare: Costs of flights for cast, crew, and equipment.
- Accommodation: Costs of lodging and hotels for cast and crew.
- Transportation: Costs of ground transportation, including:
- Vehicle rentals
- Fuel
- Driver fees
- Per Diems: Daily allowances for cast and crew.
Miscellaneous:
Miscellaneous costs that qualify include:
- Office Expenses: Costs of production office supplies, utilities, and other overheads.
- Insurance: Costs of production insurance, including liability and equipment insurance.
- Permits and Fees: Costs of permits, licenses, and other fees required for production.
- Other Miscellaneous Costs: Other costs directly related to the production, such as:
- Communication expenses
- Courier services
- Security services
Post-Production Expenditures
Post-production expenditures that qualify include:
- Editing: Costs of editing, including editor fees, editing software, and equipment.
- Visual Effects (VFX): Costs of creating and integrating visual effects, including CGI, animation, and compositing.
- Sound Design and Mixing: Costs of sound design, sound mixing, and sound editing.
- Color Grading: Costs of color grading and picture finishing.
- Music Composition and Licensing: Costs of composing and licensing music for the production.
- Post-Production Software and Equipment: Costs of post-production software, hardware, and equipment.
Non-Qualifying production Expenditures (NQE)
Non-qualifying expenditures typically include:
- Marketing and Advertising: Costs of promoting the production, such as trailers, posters, and publicity.
- Distribution: Costs of distributing the production, such as delivery and transmission costs.
- Financing Costs: Costs of financing, such as interest and loan fees.
- Development Expenses: Costs of script development, such as writer fees and research.
- Overhead Costs: General overhead costs not directly related to the production.
- Expenditures Incurred Outside Korea: Costs incurred outside of Korea, unless specifically included in the rebate program.
Application process
Step 1: Pre-Production Registration
- Submit application to Korean Film Council (KOFIC) or relevant authority
- Provide production details, including script, budget, and schedule
- Register production company and key personnel
Step 2: Eligibility Verification
- KOFIC reviews application and verifies eligibility
- Checks cultural test or points-based system (if applicable)
- Confirms production meets rebate program requirements
Step 3: Production and Expenditure Tracking
- Track and record expenditures during production
- Keep receipts, invoices, and other documentation
- Ensure compliance with rebate program requirements
Step 4: Post-Production Submission
Submit final application with detailed expenditure report, provide supporting documentation, including:
- Financial statements
- Receipts and invoices
- Other relevant documents
Step 5: Review and Approval
- KOFIC reviews application and verifies expenditures
- Checks compliance with rebate program requirements
- Approves rebate amount
Step 6: Rebate Payment
- Rebate payment is made to production company
- Payment amount based on eligible expenditures and rebate rate
Required Documents
- Production company registration
- Script and budget documents
- Expenditure reports and supporting documentation
- Other documents specified by KOFIC or relevant authority
Tips
- Ensure accurate and detailed record-keeping
- Comply with rebate program requirements and deadlines
- Consult with KOFIC or relevant authority for guidance and support
Note
- Application process and requirements may vary depending on the specific rebate program and authority.
- It’s essential to consult with KOFIC or relevant authority for the most up-to-date and accurate information.
Ready to maximize your film incentives?
Partner with Hoodlum Film Fixers to navigate rebate programs, streamline compliance, and connect with trusted local partners. Let us handle the logistics so you can focus on creating. Contact us today to get started.