In this paper, we have studied financial statement and revenue structure of Korean independent production companies. As a result, even though massive orders of production from TV stations, only few companies make profits. It is due to not only insuffi...
In this paper, we have studied financial statement and revenue structure of Korean independent production companies. As a result, even though massive orders of production from TV stations, only few companies make profits. It is due to not only insufficient production cost supported by TV stations but also failure of financial management of the production companies themselves.
Production companies procure only 40-60% of production cost from TV stations. Additionally, they dont have a chance to obtain additional revenue since they do not have copyrights. Furthermore, back-door listing on KOSDAK, the company with embezzlement CEO, led the company to be financially distressed due to inefficient managing. Excessive investment for intangible assets like star scenarist and famous director also caused financial pressures for the company.