The Ministry of Culture, Sports and Tourism announced Sunday it will establish a 43.75 billion won ($30 million) loan and guarantee program to build a growth foundation for the arts industry, in partnership with the Korea Arts Management Service.
The initiative reflects the government's shift toward treating arts as an "industry," moving beyond traditional subsidies to an investment-based approach. The ministry has allocated budget for the new "Arts Industry Financial Support" program this year.
NH Nonghyup Bank and Hana Bank will provide loans, while the Korea Technology Finance Corporation will handle guarantees. Applications for loans open March 16, with guarantee applications beginning April 1.
"Driven by recent growth in the domestic arts market, particularly in performing arts and fine arts, we are introducing low-interest policy loans for the arts industry, similar to those for tourism and sports industries," the ministry said. "We are also establishing arts industry guarantees to support all arts sectors previously excluded from cultural industry guarantees. Arts companies with high growth potential can attract investment through the Content New Growth Fund."
Loan recipients include private arts facilities such as theaters and galleries, as well as arts service providers including agencies and production companies. The ministry will supply 20 billion won in loans across two categories: facility funds for renovation, construction, and equipment, and operating funds for labor costs, marketing, materials, and rent.
Interest rates are based on the Public Fund Management Fund's variable lending rate of 2.96% for the first quarter of 2026. Large and mid-sized enterprises face a 0.04 percentage point premium, while small and medium enterprises receive a 0.21 percentage point discount. Young entrepreneurs aged 39 or under qualify for a fixed 2.5% rate. Loan limits range from 500 million to 3 billion won, with repayment periods of five to ten years.
The guarantee program covers literature, fine arts, music (excluding pop), dance, theater, traditional Korean music, photography, architecture, and musicals. Guarantees totaling 23.75 billion won will support two categories: "arts enterprises" receiving operating funds based on growth potential assessments, and "arts projects" funding production and planning for performances and exhibitions.
The maximum guarantee per company is 1 billion won. Applicants undergo evaluation by the Korea Arts Management Service before receiving recommendations to the Korea Technology Finance Corporation for final review and guarantee issuance. Companies can then secure commercial bank loans using the issued guarantees.
"Many arts companies have high growth potential but lack credit history or collateral," the ministry said. "We plan to supply sufficient funding through loans and guarantees to remove barriers to arts investment and financing. We expect this arts industry policy financing to serve as a springboard for more Korean arts companies to expand globally."
