[Edaily Starin YUN GI BACK Reporter] As domestic film investment has come to a standstill, international co-productions utilizing European capital and support programs are emerging as a new breakthrough for Korean cinema. With the expansion of large-scale investment cooperation with France and the signing of a separate agreement with Italy for bilateral co-productions, Korean production companies are expected to gain broader access to European funding and distribution networks.

◇500 Million Euros in Korea-France Investment… Adding ‘Finance and Distribution’ to the Co-Production Framework
The Ministry of Culture, Sports and Tourism announced on the 7th that, on the occasion of the “Lumière Summit” held in Saint-Paul-de-Vence, France, South Korea and France launched the “Lumière Partnership,” under which each country will invest 500 million euros (approximately 800 billion won) in its respective film and video industries over the next five years. The two countries plan to form a separate steering committee to develop concrete plans for cooperation ranging from content production to investment and distribution.
The institutional foundation for Korea-France co-productions is already in place. Korea and France signed a film co-production agreement in 2006. Co-produced films that meet certain requirements are eligible for benefits equivalent to those granted to domestic films in both countries. This partnership signifies an expansion of policy-based financing and distribution cooperation beyond that framework.
Given the current contraction of the domestic investment market, the utility of such a structure could grow even further. For example, a Korean production company could partner with a French production company to secure production funds and jointly leverage local support programs and European distribution networks.
As the investment crisis in the Korean film industry deepens—to the point where even Director Lee Chang-dong’s new film, *Possible Love*, could not secure domestic funding and had to be produced with Netflix investment—calls are growing for the industry to diversify its sources of production funding overseas.
The barriers to co-production with Italy have been significantly lowered. Minister of Culture, Sports and Tourism Choi Hwi-young and Italian Minister of Culture Alessandro Giulli signed the “Korea-Italy Film Co-production Agreement” at this summit.
Previously, to utilize the Protocol on Cultural Cooperation under the existing Korea-EU Free Trade Agreement (FTA), certain requirements had to be met, such as the participation of South Korea and at least two EU member states. In contrast, under the new agreement, the door is now open for works involving only South Korea and Italy to be recognized as co-productions.
Once recognized as co-productions, these films are treated as domestic productions in their respective countries, making them eligible for subsidies, tax credits, and other film-related incentives, while also facilitating the movement of production personnel and equipment.

◇Shifting from Exporting Finished Films to “Co-Financing and Co-Production”
The film industry views international co-productions as more than just a means of making movies with foreign partners; they see them as a way to diversify production financing. This is because, rather than a single domestic production company raising all the funds, production companies from multiple countries can share the costs and jointly leverage each country’s public support and tax incentives.
Another advantage is the ability to secure overseas distribution and sales channels for completed films right from the production stage. This marks a shift away from the traditional approach—where films were made with domestic capital and then sold overseas—toward a model where funding, rights, and distribution networks are jointly planned with overseas production companies starting from the planning stage.
A film industry official stated, “In a situation where it is difficult to secure production funds through domestic investment alone, international co-production can serve as a practical alternative by broadening funding sources,” adding, “In particular, partnering with European production companies from the early stages offers the advantage of securing not only local subsidies and tax incentives but also distribution networks at the same time.”
However, European capital does not automatically solve the investment challenges facing Korean films. Intellectual property (IP) rights, overseas distribution rights, and profit sharing may vary depending on the co-production ratio, and how creative and editorial control is divided during the production process is also crucial. An official from a film investment and distribution company pointed out, “If reliance on foreign capital becomes excessively high to make up for a shortage of domestic funds, we must also consider the possibility that the rights of Korean production companies themselves could be weakened.”