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Busan Metropolitan City Establishes KRW 21.5 Billion “Film & Visual Content Fund No. 2”

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Busan Metropolitan City to strengthen its regional production base through consecutive investments following Film & Visual Content Fund No. 1!

Busan Metropolitan City (Mayor Park Heong-joon) announced today (the 18th) that it has established the KRW 21.5 billion Film & Visual Content Fund No. 2, officially named the “Nextage Mid-Budget Korean Film Investment Fund.”

The first fund, the “Saltlux Korean Film Renaissance Fund,” was established in July last year (2024) with a total size of KRW 23.3 billion, following the signing of a business agreement among Busan Metropolitan City, the Busan Film Commission, and Saltlux Ventures.

Overview of the Nextage Mid-Budget Korean Film Investment Fund

• ●Fund Manager: Nextage Investment Co., Ltd.

• ●Fund Size: KRW 21.5 billion
  (Busan Metropolitan City KRW 1 billion, Fund of Funds KRW 10 billion, Fund Manager KRW 0.5 billion, Private Sector KRW 10 billion)
  ※ Busan Metropolitan City’s contribution: KRW 1 billion
  ▹ KRW 0.4 billion in 2025, KRW 0.3 billion in 2026, KRW 0.3 billion in 2027

• ●Fund Duration: 6 years (4 years for investment, 2 years for recovery)

• ●Key Details: Mandatory investment of at least twice the amount of Busan Metropolitan City’s contribution in the Busan region ▹ KRW 2 billion or more

This fund is the second Film & Visual Content Fund following the “Saltlux Korean Film Renaissance Fund” established last year (KRW 23.3 billion) and was created to further solidify the investment foundation for the sustainable growth of the film and visual content industry in the Busan region.

In accordance with the “Five-Year Plan for Film & Visual Content Fund Formation (2024–2028),” Busan Metropolitan City plans to establish funds totaling KRW 100 billion. With the launch of this second fund, the City has now achieved approximately 45 percent (%) of the target amount, totaling KRW 44.8 billion.

The “Nextage Mid-Budget Korean Film Investment Fund” was formed with a total of KRW 21.5 billion, comprising KRW 1 billion from Busan Metropolitan City, KRW 10 billion from the Ministry of Culture, Sports and Tourism’s Fund of Funds, KRW 0.5 billion from the fund manager Nextage Investment Co., Ltd., and KRW 10 billion from private companies.

In August of this year, Nextage Investment Co., Ltd. was finally selected as the fund manager through the Fund of Funds’ open call for film account investments (mid-budget Korean film sector) and will operate the fund for six years (2025–2031). Busan Metropolitan City’s contribution of KRW 1 billion will be invested in installments over three years (KRW 0.4 billion in 2025, KRW 0.3 billion in 2026, and KRW 0.3 billion in 2027) through an indirect investment structure via the Busan Film Commission.

As with the first fund, the second fund applies the “mandatory Busan project investment” provision. During the four-year investment period, it is required to invest at least KRW 2 billion—equivalent to more than twice the committed investment amount—in projects including:
▲ film and visual content works produced by production companies based in Busan;
▲ projects utilizing intellectual property (IP) owned by Busan-based companies or creators; and
▲ works filmed in Busan for 20 percent (%) or more of total shooting days.

Busan Metropolitan City plans to continue establishing film and visual content funds and, in close cooperation with related organizations such as the Busan Film Commission, to actively support the discovery of local production companies and the linkage of investments.

Cho Yu-jang, Director General of the Culture Bureau of Busan Metropolitan City, stated, “With the establishment of Film & Visual Content Fund No. 2, investment in Busan’s film and visual content industry is now accelerating in earnest,” adding, “By leveraging the expertise of the fund manager, we will invigorate all aspects of film and visual content production in the Busan region and complete the formation of funds totaling KRW 100 billion by 2028.”