Korean Film Industry Faces Investment Crisis, Government Intervention Looms
BUSAN, SOUTH KOREA – A significant contraction in film investment is threatening the future of Korean cinema, with major distributors halting funding and a wave of mergers reshaping the industry landscape. lotte Entertainment, Plus M Entertainment, NEW, and Showbox have all ceased investment, signaling a deepening financial strain exacerbated by economic recession.
The consolidation of Lotte Cinema (Lotte Entertainment) and Megabox (plus M Entertainment) will reduce the number of key investors from five to four, further shrinking the overall investment pool. Distributors are reportedly decreasing investment percentages from 60-70% to under 50%, leaving producers struggling to secure budgets. This financial pressure is already impacting creative choices, with filmmakers increasingly prioritizing commercially viable projects over artistic endeavors – a trend exemplified by director Lee Chang-dong’s decision to pursue a project with Netflix due to investment difficulties.
The crisis extends beyond funding, raising concerns about the diversity of films reaching theaters. With a potential reduction 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 President Lee Jae-myung pledging support for the industry’s “essential growth” during a visit to the Busan International Film Festival. Minister of Culture,Sports and Tourism,Choi Hwi-young,has also emphasized the need to address the industry’s reliance on overseas OTT platforms.
However, resolving the crisis is complicated by conflicting interests among creators, producers, investors, theaters, and audiences. Legislative solutions, such as clarifying the role of OTT services within the Act on the Promotion of Film and Video Production, are under consideration, but require careful negotiation. industry experts agree that maintaining a minimum level of film production is crucial to ensuring a continued supply of high-quality content.