Korean Film Industry Faces Investment โCrisis, Government Intervention Looms
BUSAN, SOUTH KOREA – Aโฃ significant contractionโ in film investment is threatening the โฃfuture of Korean cinema, with major distributors halting funding and aโ wave of mergers reshaping โthe industry landscape.โค lotte Entertainment, Plus M Entertainment, NEW, and Showbox have all ceased investment, signaling a deepening financial strain exacerbated by economic recession. โ
The consolidation โof Lotte โCinemaโฃ (Lotte Entertainment)โ and Megabox (plus M โขEntertainment) will reduce the number of key โฃinvestors from five to four, further shrinking the overall investment pool. Distributors are โreportedly โdecreasing investment percentages from โ60-70% to underโ 50%, leaving โคproducers struggling to secure budgets. Thisโ financial pressure is already โimpacting creative choices, with filmmakers โฃincreasingly โprioritizing commercially viable projects over โartistic endeavors – a โคtrend exemplified by director โLee โขChang-dong’s decision to pursue a project with Netflix due to investment difficulties.
The crisis extends beyond funding, raising concerns โคabout the diversity of films reaching theaters. With โa potential reductionโฃ to approximately 20 theatrical releases annually, there’s a growing risk that less commercially focused, “value-driven” films will be sidelined. The South Korean government is responding to the situation, with โคPresident Lee Jae-myung pledging support for the industry’s “essential growth” during a visit to the Busan International Film Festival. Minister of โCulture,Sports and Tourism,Choi Hwi-young,has also emphasized the need to addressโ the industry’s reliance on overseas OTT platforms.
However,โ resolving the crisis is complicated โby conflicting interests among creators, producers, investors, theaters, and audiences.โ Legislative solutions, such as clarifying the role of โคOTT services within the Act โon the Promotion of Film and Video Production, are under consideration, but require careful โขnegotiation. industry experts agree thatโฃ maintaining a minimum levelโ of film production is crucialโ to ensuring a continued supply of โhigh-qualityโข content.