【悲報】韓国の映画産業、ガチでオワコンになってしまう・・・・・・
What?! The South Korean film industry, which once dominated the world with hits like 'Parasite,' is now facing a crisis so severe it's being called "over"?
In recent years, audiences haven't returned to cinemas, production costs have soared, and many films are ending up in the red.
On social media, concerns about the future of Korean cinema are mounting, with many speculating Netflix or the pandemic are to blame.
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What is the Screen Quota System?
The screen quota system is a policy that obliges cinemas to screen domestic films for a certain number of days per year, aimed at protecting and fostering the domestic film industry. Introduced in South Korea in the 1960s and strengthened in the late 1990s, this system shielded Korean films from the overwhelming share of Hollywood blockbusters and guaranteed screening opportunities domestically. This fostered an environment where Korean films could produce high-quality works and build competitiveness in the domestic market. Notably, coinciding with the emphasis on cultural industry promotion as part of economic recovery after the IMF crisis, it propelled the Korean film renaissance, giving rise to blockbusters like 'Shiri' (1999) and 'Joint Security Area' (2000). However, the system was later downscaled due to negotiations for a Free Trade Agreement (FTA) with the United States. In recent years, with the rise of OTT services and audience reluctance to visit theaters, there are criticisms that the system is no longer as effective as before. This means that even if domestic films are guaranteed screening slots, it's meaningless if audiences don't come to the theaters, leading to discussions about the modern relevance of the system and the need for new protection and promotion measures.
Impact of OTT Services
OTT (Over-The-Top) services refer to streaming platforms like Netflix, Disney+, and Amazon Prime Video that deliver video content via the internet. For the South Korean film industry, the rise of these OTT services has brought both light and shadow. On the bright side, platforms like Netflix have invested heavily in Korean original content, leading to international hits not only in dramas like 'Squid Game' and 'Crash Landing on You' but also in films. This has provided new opportunities for Korean creators and actors and boosted production budgets. However, the downside is also significant. Many talented individuals and production budgets have shifted from theatrical releases to OTT-exclusive productions. Audiences, having grown accustomed to "watching high-quality Korean content at home" during cinema closures due to the pandemic, now have less motivation to visit theaters. As a result, theatrical releases struggle with audience numbers, and even with soaring production costs, profitability remains elusive. While OTT has elevated the international standing of Korean content, it has simultaneously shaken the foundation of the domestic theatrical film industry.
Decline in Audience Numbers and Soaring Production Costs
One of the biggest factors contributing to the South Korean film industry being labeled "over" is the dramatic decrease in audience numbers coupled with a disproportionate surge in production costs. South Korea's annual cinema attendance reached approximately 220 million in 2019, an era hailed as the golden age of its film industry. However, the COVID-19 pandemic from 2020 onwards forced long-term closures and capacity restrictions on cinemas, drastically reducing attendance to around 60 million (2020) and 50 million (2021). Even after the pandemic's end, the audience's reluctance to return to theaters remains severe, with numbers only reaching about 120 million in 2023, less than half of the peak. While Hollywood blockbusters can still secure a certain level of attendance, the market share of Korean films continues to struggle. Primary reasons for the audience's absence include increased movie ticket prices, the ingrained habit of watching content on OTT services, and a perceived decline in film diversity and quality. Conversely, production costs continue to soar, driven by rising star fees and advancements in CG/VFX technology. The break-even point (BEP) for many Korean films is now even higher than pre-COVID levels, requiring millions of admissions. This means that many films, with the exception of a few mega-blockbusters, are likely to end up in the red, creating a vicious cycle where investors are hesitant to fund theatrical releases.