South Korea's Broadcast Media and Communications Commission said a Korea-Canada audiovisual co-production agreement it has worked on for 8 years will finally come to fruition. It said the deal goes beyond a diplomatic document signing and provides an institutional package covering production funding, tax benefits and quota exemptions.

The commission said on April 20 it will visit Canada from April 21 to 25 to conclude the "Agreement between the Republic of Korea and Canada concerning Co-operation in Audiovisual Co-production". A delegation led by Go Min-soo (고민수), a standing commissioner, will visit the Canadian Heritage Ministry and sign the agreement on April 22 local time.

The commission began co-production negotiations with Canada in December 2017. It completed domestic procedures in January 2025 after text negotiations and agreement from 2018 to 2023, followed by Cabinet approval and presidential ratification. Momentum increased after Canadian Prime Minister Mark Carney mentioned the need for an early conclusion at last year's Asia-Pacific Economic Cooperation leaders' meeting.

A key element is that co-productions will be recognised as domestic programmes in both countries. With that status, terrestrial and general programming broadcasters will be exempt from quota rules requiring at least 80 percent of total airtime each half-year to be scheduled with domestically produced programmes.

Minimum financial contribution requirements are set at at least 15 percent from each country for TV programmes, 20 percent for other content including films, and at least 10 percent for multilateral co-productions involving third countries. Compared with agreements the commission has signed with the European Union, India and Britain, each with a 30 percent threshold, it said the entry bar has been lowered.

Production support is also structured as a package. In broadcasting, producers in both countries can apply at the same time for co-production support from the Canada Media Fund and from the commission. The Canada Media Fund is about 390 million Canadian dollars a year, with 84 percent allocated to broadcast programmes. For films, about 80 million Canadian dollars a year is投入 into actual production through Telefilm Canada. The commission also runs a co-production support programme worth about 500 million won a year.

Tax benefits will follow. Under the Restriction of Special Taxation Act, part of the production costs for video content such as dramas, animation and documentaries can be deducted from income tax or corporate tax. The applicable rates are 10 percent for small and medium-sized enterprises and 7 percent for mid-sized companies.

Market size also factored into selecting Canada as a partner country for the agreement. As of 2024, Canada's broadcasting market was worth about $11.1 billion. In the global box office, the United States and Canada form the world's largest market at $8.8 billion, with a 29 percent share. In the same year, South Korea ranked eighth at $900 million.

After the signing, the delegation will visit the Canadian Radio-television and Telecommunications Commission to discuss broadcasting policy and regulatory trends. On April 23 it plans to visit public broadcaster CBC to discuss measures to expand media access rights. The agreement will take effect on the first day of the month after both countries notify each other that domestic procedures have been completed.

Go said, "I am very happy to finally sign the co-production agreement we have waited a long time for," and added, "I expect it will help enhance the global competitiveness of Korean content and contribute to expanding entry into the North American market through the activation of co-productions." Philip Lafortune (필립 라포르튠), Canada's ambassador to South Korea, said, "This agreement is an important milestone in the creative and economic cooperative relationship between our two countries," and added, "I hope it will be a new opportunity for producers and creators in both countries to work together and share stories with audiences around the world."