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Agglomeration of the Animation Industry in Seoul, South Korea

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The Agglomeration of the Animation Industry in East Asia

Part of the book series: International Perspectives in Geography ((IPG,volume 4))

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Abstract

This chapter examines the characteristics of the transactional relationships and the labor market that determine the agglomeration structure of the animation industry in Seoul, South Korea. Studios are classified into three groups according to their major business partners: those with Japanese clients, those with Western clients, and those with domestic clients. Studios of all types transact with other studios for complementary labor and techniques, and workers learn skills through their personal connections, as they do in the Japanese animation industry. Nevertheless, a more detailed examination reveals that different agglomeration structures have formed in Seoul because the industry in South Korea has developed as a subcontracting industry for Japan and the West, and each studio demands different specializations from its employees.

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Notes

  1. 1.

    EBS is a terrestrial TV station that broadcasts educational programs. Tooniverse and Anyone TV are cable TV stations that specialize in animations, and Daekyo Kids TV specializes in programs for children.

  2. 2.

    The notice states the following: “In the case of domestically produced animations: (a) terrestrial broadcasting operators: more than 45 % of all animation airtime; (b) broadcasting stations other than terrestrial operators: more than 40 % of all animation airtime; (c) regardless of provisions (a) and (b), more than 8 % for operators specializing in programs relating to education and more than 4 % for operators specializing in programs relating to religion.” See http://old.kcc.go.kr/user.do?mode=view&page=P05030200&dc=K04030000&boardId=1063&boardSeq=14118 (last access on April 9, 2014) for more detailed information.

  3. 3.

    Calculated as 100 yen = 0.96 US dollars as of January 3, 2005.

  4. 4.

    http://local.paran.com/, last accessed on July 6, 2008. The site had been closed now.

  5. 5.

    KAPA member company presentations are on KAPA’s Web site (http://www.koreaanimation.or.kr/, last accessed on July 6, 2008).

  6. 6.

    Hyundai Dream Town and Booyoung Greentown are housing complexes where studios occupy apartments alongside other private citizens. There is a TV station in the vicinity, which suggests a related content industry agglomeration. The Guro Digital Industrial Complex, Hyundai Dream Town, and Booyoung Greentown are all properties that were subject to full-scale sale after 2000. Several studios moved in within several years, which suggests that production studios are highly mobile.

  7. 7.

    100 won = 12.02 yen or 0.11 US dollars as of November 19, 2007.

  8. 8.

    The responses on countries of overseas transactions and transaction details showed that one of these studios (Studio C) resembles studios that depend on orders from Japan for more than half of their work flow. Consequently, Studio C is treated here together with studios dependent on foreign orders.

  9. 9.

    Studio A mainly subcontracts work from several major US animation production studios. As of 2005, its entire revenue was earned through foreign orders. It has subcontracted work from US animation production studios since its inception. In the second half of the 1990s, it received prizes such as the Korean Prime Minister’s Award for its sizeable exports.

  10. 10.

    As for the two studios located outside Sillim-dong (C, D), Studio C moved to a neighboring district by considering the importance of proximity to other studios in the same business located around Sillim-dong. Initially located in Sillim-dong, Studio D moved away because of increased domestic work. It is now considering moving back because it is conscious of the importance of proximity to other studios in the same business.

  11. 11.

    The two studios located in districts other than Nonhyeon-dong, Gangnam Ward, and Jamwon-dong, Seocho Ward, (A, M) accept orders exclusively from a limited number of foreign companies (A: two companies; M: one company). These two studios are thought to have chosen their location by considering access to the international airport, and thereby temporal proximity to the foreign companies with which they operate exclusively. Meanwhile, satisfactory Internet facilities, spacious premises, and municipal government incentives were cited in interviews as reasons for moving to the Guro Digital Industrial Complex.

  12. 12.

    Studio O’s domestic orders, which account for approximately 3 % of its total orders, are for the production of commercials for corporations in general.

  13. 13.

    Data transfer with Japanese production studios also takes place using fax and Internet (file transfer protocol lines). The finished product can also be delivered directly to a studio by placing an order online. Even in such cases, the key and animation pictures produced by South Korean production studios are delivered by the person in charge of Japanese studios because of copyright issues for the key and animation pictures produced.

  14. 14.

    Studio O places orders with a younger studio that used to be operated by Studio O and now operates independently. Also, Studio K places orders with a production studio run by brothers of Studio K’s manager. Locally, such partners are referred to as “peers.”

  15. 15.

    As for other responses, two studios responded “trust regarding payment,” one studio responded “conventional business,” and one studio responded “viable delivery time.”

  16. 16.

    According to the interviews, it is usual in the animation industry for schedules to change suddenly and production delays in the upper process (the Japanese side) to be absorbed in the lower process (the South Korean side). Within such a production system, it is unclear who has responsibility. On the other hand, while the explicit recording of contract details clarifies where responsibility lies, it makes it difficult to respond to changes in circumstances. Consequently, the explicit recording of contract details can often result in disadvantages for both production studios.

  17. 17.

    According to the interviews, somewhat unreasonable work must also be accepted to maintain the work flow from Japanese production studios. By responding to the demands of a Japanese production studio, a relationship of mutual trust is built and the studio’s reputation with Japanese studios increases.

References

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Yamamoto, K. (2014). Agglomeration of the Animation Industry in Seoul, South Korea. In: The Agglomeration of the Animation Industry in East Asia. International Perspectives in Geography, vol 4. Springer, Tokyo. https://doi.org/10.1007/978-4-431-55093-8_3

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