A study on the economic effect of income deduction on OTT subscription fees

Income deduction is a deduction for a certain amount of income subject to taxation, and is implemented for the purpose of revitalizing the field in various industries according to various policy judgments. In 2018, the Ministry of Culture introduced an income deduction for cultural expenses such as performances, museums, and art galleries with the aim of enhancing people's cultural enjoyment and revitalizing the cultural industry. Recently, as the OTT industry has grown rapidly enough to be used by 72.0% of the people, discussions have been raised that OTT subscription fees should be included in the scope of the cultural cost income deduction. It is argued that the existing cultural cost deduction had a geographical limitation of space, but since there is no space constraint, the OTT subscription fee income deduction has a large policy effect from a cultural perspective. As the necessity of applying the cultural cost income deduction to OTT subscription fees continues to be raised, it is necessary to systematically analyze the economic ripple effects of the income deduction for OTT subscription fees. Therefore, in this study, in order to determine whether it is politically appropriate to include OTT subscription fees in the cultural cost income deduction range, the economic ripple effects of OTT subscription fees income deduction through the input-output analysis (IO) model used in economics are analyzed and implications are presented.