Economic Impact on Expansion of Cultural Industry Investment Promotion Zone

This study aims to estimate the economic ripple effect on the regional economy with the designated expansion of the cultural industry investment promotion zone of Gwangju Metropolitan City. The economic ripple effect resulting from such expansions, including the existing investment plan and the sales of the cultural industries, was analyzed. Additionally, from the investment promotion zone in the Asia Culture Center district, the production, added-value, and employment-inducing effects were observed. The study showed that when expanding the investment promotion zone, the production-inducing effect is 406,246 million won, the added value causing the effect is 180,404 million won, and the employment-generating effect was 5,467 people. However, compared to the public sector investment, private sector investment was lower. Furthermore, we found that the economic ripple effect was relatively low in the content sector of the cultural industry, a more productive industrial sector. The Cultural Industry Investment Promotion Zone in Gwangju is necessary to revitalize the region's local economy and cultural industry. However, to revitalize the investment promotion districts, more sensible policies will be needed to garner further private investment and increase sales of private companies.