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130, Suyeonggangbyeon-daero,
Haeundae-gu, Busan, Republic of Korea,
48058

  • CO-PRODUCTION
  • KOFIC Co-production Fund

KOFIC Co-production Fund

CO-PRODUCTION

The Guidelines on KOFIC Co-production Fund

1. Objectives

1. Promoting the revitalization of the film industry by strengthening the production capabilities of local filmmakers for international cooperation and creating employment, and expanding opportunities

2. Attracting global projects to produce and co-produce in Korea, strengthening local production and cooperation capabilities and positioning the Asian content production hub

2. Details and Eligibility

1. Overview

Category, Details of Support Scale
Category Details
Eligible Projects
  • A Feature-length international co-production film to be completed within the year produced by by Korean production companies/producers.
    • limited to narrative fiction feature films.
      ※ To qualify, the proportion of the respective contributions of the co-producers of the two countries may vary from 20 to 80 percent of the total budget. For productions involving three or more countries, contributions may range from 10 to 90 percent.
Annual Budget
  • Annual Budget: KRW 3,000million
Support Amount
  • Up to 50% of the net production costs borne by the Korean production company.
    * per project cap: KRW 500 million
Applicant Criteria
  • Applicant must be a lawfully registered film/video producer in Korea and should contribute the minimum proportion of the total production budget(should have a signed contract of co-production)

2. Eligible Use of the Fund

Classification, Details of Qualifying Production Expenditure
Classification Details
Eligible Use of the Fund
  • May be used only for the portion of net production costs borne by the Korean production company, incurred between the date of subsidy disbursement and the end of the agreement period.
  • All expenditures must be executed through the national subsidy management system, using pre-authorized credit card payments, bank transfers, and electronic tax invoices, in accordance with the agreement.
Production
Pre-production Costs such as equipment rental for test shoots and other pre-production expenses.
Production Staff and cast, art/props/costumes/makeup, still photography, location shooting expenses, and equipment rental.
Post-production Editing, music, sound, DI, DCP, subtitles, and other post-production-related expenses.
  • The expenditure for the main casts that exceeds 50% of total labor expenses cannot be validated,
  • Expenses covered by any kind of public funding by Korean government or government/state related body will not be recognized as QPE.
  • Costs incurred prior to the subsidy disbursement date are not eligible.
  • VAT, employer-paid portions of social insurance, and withholding taxes arising from tax invoices or card payments are excluded from eligible costs.

3. Terms and Conditions

Classification, Details of Qualifying Production Expenditure
Classification Details
Disbursement Schedule
  • In two installments:
    • 1st Installment : Upon execution of the agreement and commencement of production (submission of evidence such as contracts with key production staff or post-production contracts).
    • 2nd Installment : Upon submission of the rough cut
Mandatory Requirements
  • Must be completed within the year
  • Must be publicly released, either through theatrical release or OTT distribution.
    * However, if the film is officially invited and screened at the major international film festivals or at a KOFIC-supported international film festival held in Korea, prior to theatrical or OTT release, this requirement may be exempted,
  • Recoupment of subsidy (Subordinated Principal Recovery)
Definition, Exeptions
Definition
  • If, within two years of the first theatrical release or OTT launch, revenues generated from theatrical exhibition and domestic/overseas ancillary markets exceed the total production cost excluding the KOFIC subsidy, KOFIC may recoup its subsidy up to the amount of the total production cost including the subsidy.
  • If revenues do not exceed the total production cost excluding the KOFIC subsidy, no recoupment shall be required.
  • Even if revenues exceed the total production cost including the subsidy, KOFIC shall not separately claim profits beyond recoupment of its subsidy principal.
Exeptions
  • If final net production costs exceed the agreed amount by more than 5%, such excess costs are generally not recognized.
  • However, if KOFIC approves recognition of such excess costs, the subsidy shall be recouped on a pari passu (1/n) basis alongside other investors, rather than under the subordinated recoupment principle.
Exclusions from Application/Evaluation
  • In the event that KOFIC requests additional documents, the applicant shall submit the documents within 5 days. Any delay may result in cancellation or deferral of the application.
  • If the applicant withdraws its application more than two times after the selection, the application will be excluded from consideration.
  • If the applicant received the production subsidies from KOFIC with the same project, the application will be excluded from consideration.
  • If the applicant is being sanctioned by violating the rules and regulations, or agreements with KOFIC, the application will be excluded from consideration.
  • The applicant must be debt-free with respect to KOFIC.

4. Application Period and Application Method

Application Deadline, How to submit, Required Documents, Submission Documents, Documents for Interim settlement (If applicable)
Classification Details
Application Deadline
  • Phase 1: ~ April 10th
  • Phase 2: ~ July 10th
    ※ Application period may vary depending on the circumstances of KOFIC. In case of any changes, a separate notice will be posted on website
How to submit
  • Online(must be submitted by Korean producer/production company)

3. Support and Selection Procedure

1. Support Procedure Flowchart

Support Procedure Flowchart
  1. Announcement
  2. Application Open
  3. Review Applications
  4. Decision Made by KOFIC
  5. Sign off Agreement
  6. Production
  7. Audit & Report
  8. Theatrical/OTT Release

2. Selection Procedure

  • Once the applicant submits the application and the supplements to KOFIC, it shall be reviewed to determine the provisional support amount within the remaining budget as of the reviewing date.
  • KOFIC shall deliberate upon the evaluation results and make the final decisions and notify the applicants accordingly. KOFIC shall have the final authority on the eligibility and the amount, and its decision is not subject to appeal. However, provided that an application previously rejected has been edited to meet the requirements, may be resubmitted.

3. Evaluation Criteria

  • The degree to which the project utilizes Korean locations and engages with Korean companies("Korean Infrastructure Utilization")
  • The degree to which the project utilizes Korean resources("Korean participation");
  • The project's potential for global success and artistic qualities("Quality of project ")

4. Procedures and Regulations on Government Subsidies

1. Procedure and Method of Subsidy Distribution

  • The recipient of the subsidy shall execute an agreement with KOFIC within one month from the date on which the support approval is notified.
  • The subsidy shall be disbursed in two installments. KOFIC may verify, between the first and second disbursements, whether the subsidy has been used for its intended purpose, and may determine the disbursement of the remaining amount based on the outcome of such verification.
  • The subsidy shall be disbursed in accordance with the payment procedures prescribed by the ‘Integrated Management System for the Government Subsidy.’

2. Execution of Subsidy

  • The subsidy shall be managed and executed by using a separate bank account and deposit account of the ‘Integrated Management System for the Government Subsidy’, and the grant shall be executed and settled in accordance with the regulations established by KOFIC.
  • The applicant shall submit the documents required for granting by KOFIC and documents required for confirmation on necessary procedures.
  • The grant shall be made upon a separate application after signing a contract. However, in case of reasons for redeeming after granting, the principal will be redeemed with a separate disciplinary measure.
  • The applicant shall execute and settle in accordance with the regulations established by KOFIC.
  • The applicant shall submit required documents and bank account transaction details in ‘Integrated Management System for the Government Subsidy’, so that KOFIC can check on the granting.
  • KOFIC may inspect on execution and settlement of grant and may request the Third Party of the inspection if necessary. In this case, the applicant shall respond actively.

3. Duty to Notify for Approve

  • The applicant shall get the approval from KOFIC in case of significant changes as follows.
    • Change on contents due to changes in the situation, extension of the period, or change in the distribution of costs required for the project (including the project change).

4. Command of Execution

  • The applicant shall fulfill the support project in accordance with [Subsidy Management Act], Enforcement Decree of Subsidy Management Act, [Guidelines for Managing the Operation of Governmental Subsidies] by Ministry of Culture, Sports and Tourism, [Regulations on Film Development Fund and Subsidy Management] of KOFIC, and other accounting-related legislations and delivery conditions.
  • If the applicant fails to fulfill the project in accordance with legislation, decisions on granting, or KOFIC’s regulations, KOFIC may issue necessary orders or investigate the applicant.

5. Submission of Performance Report and Settlement Report

  • The applicant shall submit the performance report and settlement report in the form required by KOFIC within the expiration date of the contract.
  • Scope of Settlement : KOFIC Subsidy
  • Period of Settlement : Within 1 months from the end date of the agreement
  • Submission Documents : Settlement report, detailed execution statement, evidential materials, accounting verification report, final visual material, etc.
      • In the event that KOFIC requests additional documents such as settlement evidential materials, the applicant shall submit the documents within 5 days. Any delay may result in cancellation or deferral of the application.
  • When the granted subsidies are returned voluntarily, the rights and duties automatically expire.

6. Carryover

  • As a general principle, no carryover shall be permitted. Even where a carryover is permitted due to unavoidable circumstances, carryover into a third fiscal year shall not be permitted.

7. Cancellation of Granting

  • In case of applying to Article 21 of [Subsidy Management Act], violating the subsidy granting conditions, or applying to any of the following Sub-Paragraph, KOFIC may cancel all or part of the final decision if any of the following acts are found.
    • If the applicant filed a false application or received grants by unlawful means.
    • If the applicant used the grants for other purposes.
    • If the applicant violates the rules or legislation or violates KOFIC’s measures taken in accordance with granting conditions or legislations,
    • If the preconditions directly related to the grants are not met after approval.
    • If the applicant received the subsidy from other institutes or private organizations with the same or similar project plans. (The granting may be cancelled when the source of subsidy granted by other institutes applies to national treasury or funds. The granting may be granted when the source of subsidy applies to local government or private organizations)
    • If the results for submission of performance repot (including interim report and monthly report) and subsidy settlement are unsatisfactory.
    • If the applicant loses the ability to perform the project or if the copyright is voluntarily transferred to the Third Party.
    • If the applicant fails to handle the matters on closing, default on national tax and local tax, and credit default.
    • If the applicant accrues wages of the film staff or violates the duty of working condition clarification in accordance with Article 3-4 of [Promotion of the Motion Pictures and Video Products Act], the whole or part of the granting may be canceled.
    • If the person sentenced to imprisonment or medical treatment and custody disposition in accordance with Article 2 of [Act on Special Cases Concerning The Punishment, Etc. of Sexual Crimes] (the person whose sentence in accordance of Article 7 of Act on the Lapse of Criminal Sentences has not been lapsed yet) is the member of the work or group (except the case where the person is simply a member not involved in representation or business execution authority or decision-making process).
      * Imprisonment over 3 years : 10 years, Imprisonment less than 3 years, Fine: 2 years
    • If the person is sentenced to imprisonment or fine in accordance with Sub-Paragraph 2, Paragraph 2, Article 37 of [Equal Employment Opportunity and Work-Family Balance Assistance Act] (the person whose sentence in accordance of Article 7 of Act on the Lapse of Criminal Sentences has not been lapsed yet).
      * Imprisonment over 3 years : 10 years, Imprisonment less than 3 years, Fine: 2 years
    • If the person or member of the applicant is under investigation or prosecution in relation to Article 2 (Sex Crimes) of [Act on Special Cases Concerning the Punishment of Sexual Crimes] and Sub-Paragraph 2, Paragraph 2, Article 37 of [Equal Employment Opportunity and Work-Family Balance Assistance Act] who has not been finally convicted (except the case where the person is simply a member not involved in representation or business execution authority or decision-making process) and KOFIC deems such person or member is ineligible in executing the project.

8. Disciplinary Measures and Punishment for Cancellation on Subsidy Granting Decision

  • If the granting decision is cancelled due to non-fulfillment of duty or illegal receipt of grants by the applicant, following disciplinary measure and punishment may be sentenced in accordance with [Subsidy Management Act].
    • Return of grants and interests in accordance with Article 31 of [Subsidy Management Act]
    • Exclusion from performance in accordance with Article 31-2 of [Subsidy Management Act]
    • Penalty (up to 5 times the subsidy) in accordance with Article 33-2 of [Subsidy Management Act]
    • Announcement of the list in accordance with Article 36-2 of [Subsidy Management Act]
    • Rules in accordance with Article 40 or Article 41 of [Subsidy Management Act]

9. Information Disclosure

  • According to Paragraph 1, Article 26-10 of [Subsidy Management Act] and Article 11-2 of Enforcement Decree, the applicant whose total amount of subsidy is over 10 million won shall publicly announce the project information to Integrated Management System for the Government Subsidy within 4 months from end of the fiscal year.

5. Other Duties

1. Improvement of Working Environment

  • Prevention of Delayed Payment of Wages
    • The applicant shall comply with the duties of the employer in accordance with the statutes of the Labor Standards Act in relation to the workers involved in this project. Especially, the applicant shall not be involved in the delayed payment of wages or illegal service contract disguised as employment contract
  • Submission of Guidelines on Standard Wages
    • When KOFIC requests on submission of materials on payment of wages to motion picture workers in accordance with Article 3-3 of [Promotion of the Motion Pictures and Video Products Act], the applicant shall comply with the requests.
  • Employment Insurance of Artists
    • If the applicant is legally responsible to pay employment insurance premium and report insured state in accordance with [Employment Insurance Act] and [Act on the Collection of Insurance Premiums for Employment Insurance and Industrial Accident Compensation Insurance], the applicant shall fulfill the duties.
  • Health Right of Workers
    • The applicant shall not expose film-related workers to acts harmful or dangerous to health and shall provide a sanitary and safe work environment. The applicant shall provide separate safety equipment if necessary and shall have a duty to take immediate measures such as appropriate compensation in case of accidents that occurred at work.
  • Child Protection
    • When an applicant legally hires a person (under 18) defined as a child in [Child Welfare Act], the applicant must provide separate cares to guarantee the right to learn, right to rest, and right to stay safe. The applicant must not be involved in the acts prohibited(Sexual abuse, physical abuse, emotional abuse, etc.) in Article 17 of Child Welfare Act.

2. Response and Prevention of Sex Crimes

  • Preventive Measures Against Sexual Harrassment/Sexual Violence and Provision of Prevention Education
    • The applicant shall take sexual harrassment/sexual violence prevention measures to all project participants (including producer, director, actor, freelancer, etc.) and shall submit pledge of sexual harrassment/sexual violence prevention and certificate of completing sexual harrassment/sexual violence prevention education. (In case of taking the education from [Korean Film Gender Equality Center], KOFIC supports the education fee. The detailed procedures will be notified separately)

3. Gender Equality Policy

  • Submission of Participant Gender Ratio
    • The applicant must submit the statistical data on participant gender ratio (Refer to annex format) at the point of time before starting the project and at the point of submitting the performance report or settlement documents.

4. Indication of Credit

  • The recipient must indicate the fact that the work is supported by KOFIC (download a prescribed form from KOFIC website) on the promotional materials and the film and shall get prior approval from KOFIC.
Indication of Credit
Format With the support of the KOFIC Co-Producion Fund kofic 영화진흥위원회
  • KOFIC may use information obtained in the course of implementing this program, including information relating to the supported project, for research and policy development purposes. Upon request by KOFIC, the recipient shall provide relevant information and materials.

5. Project Monitoring

  • Following the execution of the agreement, KOFIC may conduct on-site inspections at the production stage and/or the release stage in order to monitor the progress of the project at each phase of implementation. The recipient shall comply with such inspections to the extent that they do not cause any disruption to the production or release of the project.

6. Inquiries

  • International Relations Team, (48058) KOFIC, 130, Suyeonggangbyeon-daero, Haeundae-gu, Busan, Korea
Project Name, Person in Charge, Contact
KOFIC Co-production Fund location@kofic.or.kr

※ The details of the program may vary depending on the circumstances of KOFIC.

Download

Project Name, Person in Charge, Contact
Guideline on KOFIC CASH REBATE Program
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130, Suyeonggangbyeon-daero,
Haeundae-gu, Busan, Republic of Korea,
48058

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