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

  • CO-PRODUCTION
  • Location Incentive

Location Incentive

CO-PRODUCTION

The Guidelines on KOFIC Location Incentive Program

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
  • Works to be completed within the year:
    • International co-production films(feature film, documentaries) produced by Korean production companies/producers.
      ※ 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.
    • Feature films, series and documentaries developed and produced by non-Korean production company, with non-Korean contribution exceeds 80 percent.
Annual Budget
  • Annual Budget: KRW 896million
    ※ Per-Project Cap: KRW400M for co-production films, KRW300 for Foreign projects
Incentive Amount
  • 25% cash rebate of Qualified Production Expenditures(QPE), which include the following:
    • An expenditure made in Korea directly related to pre-/production/post-production provided by Korean audio-visual related companies.
    • An expenditure made in Korea directly attributable to the pre-/production/post-production of a qualified production on cast and crew compensation.
      ※ Projects submitted after the completion of shooting in Korea must be in the process of post-production in Korea and the incentive would be limited to 15% cash rebate of QPE..
  • Interim settlement is possible based on the submission of required documents within 2 months from the last day of shooting in Korea.
Applicant Criteria
  • A work must shoot more than 5 days in Korea and spend more than KRW 400million on QPE.
    ※ For co-productions with countries which Korean Ministry of Culture, Sports and Tourism and/or KOFIC have signed MOU/MOA on international co-production(Australia, India, France, EU, Japan and New Zealand) OR with the member of the Asian Film Alliance Network(Malaysia, Taiwan, Indonesia, Singapore, Mongolia, the Philippines), the minimum required QPE is KRW 50 millions.
  • Applicant must be a lawfully registered film/video producer in Korea and should meet one of the following.
    • For international co-productions: the applicant must contribute the minimum proportion of the total production budget(should have a signed contract of co-production)
    • For non-Korean audio-visual works: the applicant must have a production service contract with a non-Korean production company and thereby provides services necessary for in-Korea production, operates and manages the relevant financial account for the production. The applicant must not be a Korean subsidiary of or a Korean company invested by a non-Korean corporation.
      * Reality shows, commercials, sports events, and educational programs are not eligible.
Requirements
Feature Film A consecutive set of images or video (including documentaries) on film, disks, or digital medium, with minimum runtime of 70 minutes produced for public viewing at a cinema, screening facilities or similar places and/or through on-line streaming (narrative, documentary)
Series A set of episodic dramas produced for television broadcast or on-line streaming, with episodes share a common theme or structure.

2. Qualifying Production Expenditure

Classification, Details of Qualifying Production Expenditure
Classification Details
Qualifying Production Expenditure (QPE)
  • QPE(Qualifying Production Expenditure) shall be indicated in accounting audit report submitted to KOFIC after completion of the visual materials. To specify QPE, the applicant must classify the expenses spent in Korea.
  • QPE recognizes only those costs incurred from 3 months prior to the first day of the principal photography in Korea to the date of the audited expenditure statement. QPE must be made by the corporate credit card(s), or bank transfer based on electronic tax invoice.
  • The expenditure for the main casts that exceeds 30% of total labor expenses cannot be validated as QPE.
  • Expenses covered by any kind of public funding by Korean government or government/state related body will not be recognized as QPE.

3. Application Requirements

Classification, Details of Qualifying Production Expenditure
Classification Details
Requirements
  • The applicant shall be evaluated by these following evaluation criteria: (1) how much the work utilizes Korean locations and engages with Korean companies; (2) how much the work utilizes Korean human human resources; (3) the project's potential for global success and artistic qualities.
  • The applicant must satisfy the followings:
    • Must spend no less than 400 million KRW in Korea on QPE.
      • Exception applies on co-production films with the countries mentioned in the program overview
      • For a television series, the production costs of all the episodes can be aggregated.
    • Must shoot more than 5 days in Korea
    • Should be a lawfully registrated film/video production company in Korea
Exclusions from Application/Evaluation
  • The applicant may not apply for an amount exceeding the estimates to spend in Korea stated in the production service agreement.
  • 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
  • Accepts applications year-round
    ※ 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)
Required Documents
1. Preliminary Application (Online)
Classification Details
1.Preliminary Application (Online) The applicant must submit the following documents:
  • Preliminary Application Form
    • Applicant and non-korean production company's information
    • Synopsis
    • List of locations for shooting, languages, director(s), all cast(s), all production staff(s) and all technical equipments/post production companies
  • Overall shooting plan in Korea
  • A copy of the applicant's business registration, corporate registry, and certificate of registration as a film/video producer
  • The non-Korean production company's business registration and corporate registry or its equivalents
  • A budget plan on total production costs in Korea (KOFIC Form)
  • The final draft of the script in its original language and its Korean translation
  • Director’s filmography (including box office scores, awards, etc.)
  • Main and supporting actor/actress’ (including box office scores, awards, etc.)
  • Producer, scenario writer, and cinematographer’s filmography (including box office scores, awards, etc..)
  • total production financing plan
  • A copy of non-Korean production company’s investment contract and a notarized Korean translation
  • A copy of production service agreement between the applicant and the non-Korean production company, and its notarized Korean translation
Submission Documents
2-1. Final Application (Online), 2-2. Final Application (Offline)
Classification Details
2-1. Final Application (Online) The applicant shall complete the production within the year and submit the final application and the list of documents below within 2 month after the completion of production in Korea. Submission deadline can be extended upon the mutual consent.
  • Final Application Form (KOFIC Form)
    • Synopsis
    • List of locations for shooting, languages, director(s), all cast(s), all production staff(s) and all technical equipments/post production companies
  • Daily shooting report
  • Summary of total production costs, and detailed breakdown of total production costs spent in Korea (KOFIC Form)
  • The final draft of the script in its original language and Korean translation
  • A copy of total production cost financing plan (KOFIC Form, prepared by foreign production company)
  • Audited expenditure statement (prepared by accounting firm)
  • A copy of distribution/screening contract or certificate and notarized Korean translation
  • A copy of bank records of foreign currency transfers by foreign production company
  • A copy of confirmation on completion of sex crime and sexual harassment prevention education (KOFIC Form)
  • A detailed breakdown of total labor costs spent in Korea
  • The gender ratio of the total production casts and staffs (KOFIC Form)
*Following documents must be submitted in the event of any changes to the original application
  • A copy of applicant information and foreign production company information (KOFIC Form)
  • A copy of applicant and foreign production company’s business registration and corporate registry
  • A copy of certificate on registration as a film producer, a video producer
  • A copy of production service agreement between the applicant and the foreign production company, and its notarized Korean translation
2-2. Final Application (Offline)
  • A copy of Final picture (Including Scenes Taken in Korea)
Address
Address International Relations Team (48058) Korean Film Council, 130, Suyeonggangbyeon-daero, Haeundae-gu, Busan, Republic of Korea
Documents for Interim settlement (If applicable)
Interim settlement Appilcation
Classification Details
Interim settlement Appilcation The applicant may apply for the interim settlement by submitting the following documents within 2 months from the last day of shooting in Korea.
  • Interim Application Form (KOFIC Form)
    • A final draft of the script
    • List of locations for shooting, languages, director(s), all cast(s), all production staff(s) and all technical equipments/post production companies
  • Daily shooting report
  • A copy of detailed breakdown of total production costs (KOFIC Form)
  • A copy of total production cost financing plan (KOFIC Form, prepared by foreign production company)
  • Audited expenditure statement(prepared by accounting firm)
  • A copy of bank records of foreign currency transfers by foreign production company
  • A copy of confirmation on completion of sex crime and sexual harassment prevention education (KOFIC Form)
  • A detailed breakdown of total labor costs spent in Korea

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 offAgreement
  6. Final Application /Settlement
  7. Online Registrationfor Gov. Subsidies
  8. Granting Subsidy

2. Selection Procedure

(1) Preliminary Evaluation

  • Once the applicant submits the preliminary 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.
  • In case of preliminary support, KOFIC and applicant shall sign a support agreement.
  • There shall be 3 copies of agreement (including one copy for notarization) and the applicant shall be responsible for the notarization cost. When the shooting does not start within 3 months from the shooting date stated in the shooting plan, KOFIC may cancel the support agreement for the efficient management of the budgets.

(2) Final Support approval

  • After the shooting and settlement, the applicant shall submit the documents including final support application form, audited expenditure statement, and subsidy project verification report. In receiving the documents, KOFIC shall make a final evaluation on support and subsidy.
  • KOFIC shall re-evaluate the qualification and eligibility ased on the related documents submitted by the applicant and shall determine the final subsidy in consideration of appropriateness of qualifying production expenditure (QRE) application details.
  • If the actual production proceeded differently from the plan set forth in the pre-application and such production is deemed inappropriate by the re-evaluation of the Review Committee, KOFIC shall cancel the decision on support and shall not pay the qualifying production expenditure (QRE) (estimate) notified in advance.
  • KOFIC shall deliberate upon the evaluation results and make the final decision and notify the applicants accordingly. KOFIC shall have the final authority on the eligibility, and its decision is not subject to appeal.
  • The applicant shall register the subsidy execution and settlement matters to “Integrated Management System for the Government Subsidy” by Ministry of Economy and Finance

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

  • KOFIC shall send the grant to the applicant’s bank account in accordance with the finalized production costs, check on whether the grant has been used for the original purpose during final support evaluation, and may determine whether to grant depending on the results.
  • The grant 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.

2. Execution of Subsidy

  • 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.
  • The applicant shall not use the grant on certain types of business such as clubs and bars where the corporate card use is limited.

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 : Amount executed in Korea for location shooting
  • Period of Settlement : Within 2 months from completion of production in Korea
  • Submission Documents : Result report, settlement report, detailed execution statement, evidential materials, accounting verification report, final visual material, etc.
    ※ Detailed matters shall be based on the agreement

    Distribution and Exhibition Agreement

    • In order to prove that the production is complete and therefore the work is ready for release or broadcasting, the recipient must submit the work with the credits attached.
    • In the event that the production is not completed, the work must be submitted in the form of the edited version that is equivalent to the final version.
    • In the event that the visual materials are not provided, KOFIC shall be allowed to attend the screening of the work.
    • A distribution/exhibition agreement between the foreign production company and local distributors or a certificate thereof shall be submitted.

    “Audited Statement of Expenditure” and “Certificate of Subsidy Settlement Report”

    • In accordance with the Article 27 of the Subsidy Management Act and the Article 12 of the Enforcement Decree of the Subsidy Management Act, the recipient must submit an audited statement of expenditure and the certificate of subsidy settlement report on all claimed QPEs and the auditors as is qualified by the Article 3 of the Act on External Audit of a Corporation must meet the following requirements :
      • Shall not be the recipient's shareholder, investor, full-time officer, employee or employer
      • Shall not be subject to the restrictions under Article 33 of [Certified Public Accountant Act]
    • The auditor shall certify on the expenditure statement that (1) he meets the aforesaid qualifications; and that (2) he has thoroughly fulfilled his auditing role by checking whether production expenses spent in Korea have been administered in accordance with the KOFIC Location Incentive ‘Standard for Qualifying Production Expenditure’ and the support documentation has been lawfully prepared. The auditor shall also state the total amount of the QPE, and shall attach the following documents as well as the audit report in accordance with the guideline for Verifying of the Subsidy Settlement Report and the detailed criteria of auditing the subsidy recipient, as it is stated in the guidelines for Managing the Operation of Governmental Subsidies (Ministry of Strategy and Finance, 2017 June 1):
      • A copy of summary on production expenses spent in Korea (Refer to “Production Cost Budget” and fill out all major categories)
      • A copy of detailed expense report on production expenses spent in Korea (Refer to “Production Cost Budget” and fill out all minor categories)

      * The recipient must submit the computer files (excel) and execution evidential materials on above materials.

    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. Carryforward

  • Carrying the subsidy forward is not allowed in principle. However, in case of subsidy carried forward due to inevitable reasons, carrying the subsidy forward for 3 fiscal years is not allowed.

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

  • If the applicant gets cinematized and released, 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 Location Incentive kofic 영화진흥위원회

5. Submission of Distribution Results

  • The applicants must submit two(2) DVDs of the final cut after completing film production and/or after the release.
  • After completing film production, the applicant must submit the distribution results including the release in overseas theaters, televisions or release via online.

6. Composition of Review Committee

  • KOFIC shall construct a Review Committee consisting of no more than 7 people (from or outside of KOFIC) who shall decide on the eligibility, whether to reward the grant, the feasibility of the budget and its actual administration, and the grant amounts.
  • KOFIC shall accept only those applications accompanied by all required documents. The Review Committee shall evaluate the applications in the order of acceptance.
  • The Review Committee may make additional document requests to the applicant through KOFIC for a detailed evaluation. The evaluation shall take place only when the applicant submitted all required documents.

6. Inquiries

  • International Relations Team, (48058) KOFIC, 130, Suyeonggangbyeon-daero, Haeundae-gu, Busan, Korea
Project Name, Person in Charge, Contact
Project Name Person in Charge Contact
KOFIC Location Incentive Program Jinhae Park 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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