Released on: September 25, 2007, 3:36 pm

Press Release Author: Eugene KANG

Industry: Entertainment

Press Release Summary: Kang, Eugene Yu-sin details structural changes and
developments that resulted from the rapid globalization and quality improvement of
Korean animation production

Press Release Body: Seoul, Korea -- (September 25, 2007) - Decision makers and
buyers of animation shows or co-producers in a production company may have heard
about the emergence of quality Korean animations, particularly of its 3D animation
technology and of co-production ventures. Over six years of experience working with
foreign production companies and selling Korean animations directly to overseas
buyers has given me the chance to reflect upon both the opportunities and dilemmas
that the Korean animation industry faces today and in the future.

The industry can be summarized by the following three characteristics. First, 3D
Computer Graphic animation which is based on original concept and property of Korean
animation studio has become a rising value-added industry in Korea. Secondly, the
increasing amount of co-productions with foreign companies has increased the
production and distribution capabilities of Korean animation companies to the point
where the sharing of human resources and finance has made them into a more
globalized force in terms of worldwide sales. And lastly, the rapid development of
Korea's new media industry has created new business opportunities and distribution
options for Korean aimations with the emergence of DMB (digital media broadcast),
Wibro (wireless broadband), and IPTV (Internet protocol television) technology,
along with the existing traditional terrestrial and cable/satellite television
channels.

The Korean animation industry is facing a number of dilemmas due to these market
characteristics. The unit price of OEM production has risen significantly over the
past few years, much higher than the prices of other developing East Asian countries
such as India or China, turning foreigners over to cheaper alternatives. The
domestic Korean animation market soon decreased in size, reducing the amount of
funding and investing. And the appearance of new media, such as IPTV, has made the
distribution process and broadcasting business more obscure.

The obstacles that the Korean animation industry faces are not just cause for
concern from a domestic point of view, but also affect the global industry as a
whole. Then what kind of opportunities does the Korean animation have on the
industrial side?

1. Top-notch production staff that have ample creative power and the technological
capabilities and capacities to produce high-quality digital animation. Much of this
comes from enhancing new characters, development and having the ability to direct
animated programming.
2. To have an already built-in infrastructure and environment for the integration of
new media, with which it can be a proper test market for the appropriate animated
show and its new content format development. This gives them the possibilities of
developing or industrializing the complex content for OSMU.
3. Having the communication skills through experience with many overseas
co-production projects and understanding production schedules and budgets.
4. To be structured with lower production costs compared to other Western developed
countries.
5. To be supported by the governmental agencies, such as KOCCA, with all aspects of
creative organization, production and business development. (Example: supporting the
pilot production - a part of the creation supporting business, offering 100 million
KRW for production cost in max/work, supporting the pilot program production. Star
Project - selecting 3 4 works per year and supporting 1 billion KRW production cost
in max/work, including worldwide PR and marketing support)
6. To be expected to play a role within the fast growing Chinese economy and
industry. So much business opportunities exist between China and Korea in the field
of animation, especially as China has such a long history and relationship with
Korea.

Based on these unique opportunities, Korean animation production or distribution
companies continue to seek overseas partners. Some Korean animations have already
been produced by major, well-known foreign production and distribution companies
that are being broadcasted on the worldwide channels as well as generating profits
through licensing. Korean animation has broken out of its concentration of East Asia
and hit the global scene, a good sign of more things to come in the future.

Opportunities are abound in Korea, a region with an industry and the capabilities to
be a trustworthy partner in animated co-productions.


Contact:
Eugene Kang
President of Synergy Media
info@synergymedia.co.kr

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