Governments play a fundamental role in supporting the creative industries with their power, their capital, and their resources. With censorship eased (1993-1997), the South Korean government began active support of creative industries from the 90s.
Under the leaders of the era, Jin (2006), Keane (2006), Nam (2008), and Ryoo (2008), the state actively supported developments in film, broadcasting, online gaming, and shopping. The support from the Korean government in creative industries, as well as communication and technology industries, granted the production of new cultural products that facilitated the emergence of the ‘Korean Wave’. In a way never seen before, the ‘Korean Wave’ allowed for the country’s film, television dramas, animated games, and music, to come to fruition on a national and international scale. Between 2001 and 2010, the total increase in sales revenue from Korea’s cultural industries was 2.62 billion (USD). By 2010, the industry had generated 3.22 billion (USD).
With government funding and endorsement, Korea’s cultural industries transformed from “ideological support for the authoritarian developmental state” to a multi-media empire that exports billions of dollars. No easy feat without the government as the backbone in supporting the creative industries. (Kwon and Kim, 2013)
The benefits of governments supporting the creative industries are wide-spreading. Greater education, the spread of ideas like political statements/commentary, and the circulation of news media, all play integral roles in informing the public. A strong political statement made by Bong Joon-ho’s horror movie, ‘The Host’ (2006), was inspired from, and spoke to an incident involving an American military base disposing hazardous chemicals into South Korean rivers. Modern, movie-going citizens of Korea (who go to 4 films a year, on average) are interested in their own stories, over Hollywood narratives. (Matt Kim, 2016)
Furthermore, we find that South Korea citizens want to consume messages that resonate. Films like ‘Veteran’ (2015), that depict a working-class hero character taking down a privileged member of society character: ring true to the feelings towards chaebols, and the climate of chaebols in Korea.
It is noticeable that Australia started backing it’s creative industries first, but have not been nearly as successful as South Korea. The Whitlam Labor government in the 1970s made a point out of supporting the Australian film industry – creating the Australian Film and Television School (AFTRS) and the Australian Film Commission (AFC). “…the new Commission (and school) prioritised cultural and artistic merit over the prospect of economic success in their funding decisions. For the first time, filmmakers were provided with substantial financial backing.” (Goldsmith, 2014).
In a Sydney Morning Herald report, Screen Australia found “films under Australian or shared creative control” accounted for 7.2% of the gross Australian box office sales in 2015. In a period of 10 years, the average was 4.3%, and in Australia’s worst year, South Korea’s lowest total grossing was at 16% (and it was before mass government support). There are contributing factors to the millions of dollars in difference between the two countries sales, like population, cultural significance and the public’s outlook on national cinema.
Recently, Australia entered into an Arrangement (Treaty or MOU) which allows Australian producers to make co-productions with creators from certain countries; including Canada, the UK, New Zealand, South Africa and a bunch of Europe. There is enormous success to be had here, as a co-production project opens a greater pool of resources, finances, creativity markets and audience reach. Both countries consider it a ‘national project’, and can take advantage of incentives like government subsidisations. The Significant Australian Content (SAC) is an eligibility test through Screen Australia (federal government agency) that ensures subject matter, location and other elements are met to obtain funding. Official co-productions made with overseas partners can bypass this test and receive subsidisation for production.
In 2020, the Morrison government gave a $24.1 million Location Incentive Grant to Marvel Universe’s upcoming ‘Thor: Love and Thunder’. Other sources say the total budget of the production has been subsidised around 35%. That is a lot of Kevin Feige Marvel dollars saved from shooting in Sydney. It also brings about thousands of local jobs and positive economic stimulation for the state. The increase in traditional Hollywood productions moving to Australia, like MCU’s new ‘Thor’ and ‘Shang-chi’, works to cement our country to the rest of the world as a new and credible hub for global film production.
In the COVID-19 pandemic, we saw and continue to see the lack of arts funding and income protection ruining the livelihoods of crew and performers in Australia. Better government support for creative industries is needed to keep running our production companies, or we risk them dissipating.
References:
Byrnes, P., 2016. Korea’s booming film industry and what it means for Australian cinema. [online] Smh.com.au. Available at: <https://www.smh.com.au/entertainment/movies/koreas-booming-film-industry-and-what-it-means-for-australian-cinema-20160802-gqj3u7.html>.
Create NSW. 2020. Marvel Studios to film “Thor: Love and Thunder” in Australia – Create NSW. [online] Available at: <https://www.create.nsw.gov.au/news-and-publications/media-releases/marvel-studios-to-film-thor-love-and-thunder-in-australia/>.
https://www.instagram.com/chrishemsworth/
Kim, M., 2016. The Korean New Wave and the Anxieties of South Korean Cinema. [online] Inverse. Available at: <https://www.inverse.com/article/13916-the-korean-new-wave-and-the-anxieties-of-south-korean-cinema>.
Kwon, S. and Kim, J., 2013. From censorship to active support: The Korean state and Korea’s cultural industries. The Economic and Labour Relations Review, [online] 24(4), pp.517-532. Available at: <http://sagepub.co.uk/journalsPermissions.nav>.
Middlemost, R., 2021. BCM 289 Week 4:Government support in building media industries and co-production treaties.
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