On May 18, Minister of Trade, Industry & Energy Yoon Sang-jik and Anil Wadhwa, Secretary (East) in the Ministry of External Affairs of India, signed an agreement in Seoul for the co-production of audio visual programs by Korea and India.
According to the treaty, every film and broadcasting program co-produced by the two countries and satisfying certain conditions is regarded as a domestic product in both of the countries and can enjoy the corresponding benefits. Also, the co-producers are allowed to enter countries with convenience and regulations on them, and their products are addressed by means of a temporary committee.
The co-product title is granted when the co-producers make a certain level of financial contributions, and their contribution of creativity is rationally proportional to the financial contribution. Specifically, the minimum is 20 percent of the total production costs for a film and 30 percent for a broadcasting program. The agreement also states that a Korean filmmaker does not have to hire an Indian and can be provided with some subsidies while making a film in India.
At present, Korean TV dramas such as Haeshin and Daejanggeum are aired only in the Northeastern part in India. Under the circumstances, the treaty is expected to accelerate the spread of the Korean Wave across India, which is home to the world’s sixth-largest video content market predicted to grow by an annual average of 10.4 percent for five years to come.
As of 2013, the Indian film and TV broadcasting industries reached US$1.6 billion and US$9.7 billion in size, respectively. In India, which is the country that makes the largest number of films a year in the world, approximately 2.5 billion movie tickets are sold each year, and the number is likely to go up with those in their 30s and younger accounting for 60 percent of the entire population.