Life Insurers Encouraged to Invest in Creative Cultural Industry

Responding to the government policy of promoting creative cultural industries, the Financial Supervisory Commission (FSC) encourages cash-rich life insurers to invest in or extend loans to such operators, which are engaged in wide-ranging activities as performing artists, film makers, advertising firms, visual designers, industrial designers, fashion designers, architects, digital providers, etc.

Taiwan's insurers hold reportedly a huge capital pool of NT$14 trillion (US$466.67 billion), hence the FSC's attempt to sway insurers to help the emerging creative cultural industry with financing.

As of the end of September 2013, loans offered to creative cultural industries by Taiwan's financial institutions amounted to only NT$180 billion (US$6 billion), suggesting massive unmet financing need.

To foster likelihood of fund-raising for creative cultural operators, the FSC has recently raised the proportion of the  Small and Medium Enterprises Credit Guarantee Fund of Taiwan to SMEs to 90% from 80%, also targeting loans  offered by domestic banks to creative cultural industries at NT$360 billion (US$12 billion) in three years. Further proof of seeding creative cultural businesses lies in the debut in January this year of an over-the-counter market exclusively for such firms. (JL)