U.S. Federal Production Incentives and Korean Content Strategy

K-EnterTech Hub connects companies, people, and on-the-ground opportunities across the global entertainment technology market.

Understanding the $125.3 Billion Additional Production Spending Scenario—and What It Means for Korean Content Companies

When production spending moves, filming locations, jobs and studio investment move with it. For Korean content companies, the debate over a U.S. federal production incentive has implications for both international partnerships and production planning.

Drawing on Olsberg•SPI’s research commissioned by the Motion Picture Association (MPA), this report explains the proposed incentive structure and the assumptions behind approximately $125.3 billion in cumulative additional production spending between 2027 and 2035. It also clarifies why an assumed 20% credit on eligible U.S.-resident labor expenditure is different from a 20% reduction in a project’s total budget.

K-EnterTech Hub connects these findings to decisions facing Korean content businesses: U.S. co-production partnerships, competitiveness across production stages, incentive payment timing, cash flow and contract review. An illustrative budget comparison shows how these considerations can inform production-location decisions.

Three charts and seven tables cover the expansion of production incentives worldwide, assumed changes in the U.S. share of production, additional spending, economic impacts and practical priorities for companies and public agencies. The report explains the study’s limitations alongside its findings, helping readers distinguish modeled outcomes from established policy effects.

Questions this report addresses

• How could a 20% labor credit affect a production budget?
• Which assumptions underpin the $125.3 billion additional spending scenario?
• What should producers examine when considering federal and state incentives together?
• How can Korean companies compare U.S.-based production with production in Korea?
• What should producers, investors and content agencies prepare now?

1. The Changing Competition for Global Production Spending
2. The Structure of the Proposed Incentive
3. Understanding the $125.3 Billion Scenario
4. Limits and Assumptions Behind the Numbers
5. Opportunities and Pressures for Korean Content
6. An Illustrative Production Budget Comparison
7. Action Priorities for Companies and Public Agencies
8. Glossary and Sources

Film and television producers; strategy and commissioning teams at broadcasters and streaming services; content investors; international business executives; film commissions and content agencies; and media industry researchers.

This report is K-EnterTech Hub’s commentary and analysis of research commissioned by the MPA. It is not an official translation of the original study. Policy parameters and economic impacts discussed in the report reflect proposals and modeling assumptions.