Scribd Logo
Upload

Welcome to Scribd!

  • 87 views

    Korean Film Industry

    Uploaded by

    Yasmim Yonekura
    The document discusses the dramatic growth of the Korean film industry over the past few decades. It describes how the industry struggled until the success of the 1999 film Shiri, which marked a turning point. Large companies then began heavily investing in film production and theater chains, driving further growth. However, overinvestment led to a bubble that has started cooling in recent years.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Korean Film Industry

    Uploaded by

    Yasmim Yonekura
    87 views5 pages
    The document discusses the dramatic growth of the Korean film industry over the past few decades. It describes how the industry struggled until the success of the 1999 film Shiri, which marked a turning point. Large companies then began heavily investing in film production and theater chains, driving further growth. However, overinvestment led to a bubble that has started cooling in recent years.

    Original Description:

    About Korean Film industry

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses the dramatic growth of the Korean film industry over the past few decades. It describes how the industry struggled until the success of the 1999 film Shiri, which marked a turning point. Large companies then began heavily investing in film production and theater chains, driving further growth. However, overinvestment led to a bubble that has started cooling in recent years.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    87 views5 pages

    Korean Film Industry

    Uploaded by

    Yasmim Yonekura
    The document discusses the dramatic growth of the Korean film industry over the past few decades. It describes how the industry struggled until the success of the 1999 film Shiri, which marked a turning point. Large companies then began heavily investing in film production and theater chains, driving further growth. However, overinvestment led to a bubble that has started cooling in recent years.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    THE KOREAN FILM INDUSTRY,

    DRAMATIC MOVEMENT OVER THE NEXT GENERATION

    1. The origin of the new wave on Korean screens

    Korea is the only nation ideologically divided in two – this seems to be the most reasonable

    explanation for the Korean people being so moved by the movie JSA (Joint Security Area) which

    photographed the situation of a divided Korea – together with the series of changes that took place

    in the Korean film industry in the 90s.

    On the other hand, as shown by the wild fluctuations in the table that follows, the Korean film

    industry has been deeply affected by external factors, such as: the influence of the production

    strategies of the Hollywood blockbusters, the impetus provided by large-scale funding and the value

    of the Korean movie in itself.

    In particular, economic issues and social trends such as the financial crisis in 1997 supported by the

    International Monetary Fund and new legislation introducing five working days a week, have been

    decisive in determining the new direction taken by the film industry.

    One salient feature over the past decade has been the increasing success of Korean films on the

    screens, where they have proved capable of attracting new spectators – a phenomenon similar to
    that witnessed in some European countries, according to what emerged during MEDIA Salles’

    Focus on Europe event at Cinema Expo International 2002, in Amsterdam.

    Considering all these points, the following three reflections on the Korean film industry, especially

    from the 90s up to the present, may be offered to European movie concerns.

    2. Increasing market share of Korean movie, from 15.9% to 45.2% within 9 years

    Until 1993, the Korean movie had a very small market share, because of its low quality, due to the

    limited budget for production and the lack of a well-developed system compared to the mighty

    Hollywood majors, which had been present on the Korean market since 1988. Accordingly, the

    market share of Korean movies had been steadily decreasing for the above mentioned period,

    finally dropping to 15% and threatening its very existence.

    However, in 1999 the film Shiri brought a positive turning. It was the first Korean blockbuster

    movie, recording around 5 million spectators: it catapulted to the top of the South Korean box office

    and ended up toppling the record previously held by Titanic. This exceptional event was enough to

    initiate large-scale fund-raising and the creation of a production system by SEG (Samsung

    Entertainment Group). Shiri’s success, representing the opportunity for the market share to soar to
    39.7%, inspired many Korean film-makers and convinced them that Korean productions could be

    successful if they were based on a good financial support and a selected, quality background (see

    diagram 1).

    Subsequently other Korean movies, like Joint Security Area and Friend were of great impact in the

    Korean film market, so that in 2002 the market share settled at 45.2% in terms of admissions and at

    a higher 46.7% in terms of box office. It should be remembered that, at the end of the nineties, the

    number of foreign movies released in Korea was six times higher than for domestic movies (see

    diagram 2).

    Apart from the development of the Korean movie in itself, the spread of multiplexes, mainly

    belonging to the Orion Group and CJ, and the legislation on the “five-day working week” have

    tempted the Korean people to visit theatres more during their longer weekends. As a result the

    Korean film market has continued to expand by 17% to 18% each year and total audiences in 2002

    amounted to over 100 million (see diagrams 1, 3, 4).

    In addition, major distributors of Hollywood movies, such as Warner Brothers, MGM, and

    Dreamworks began to obtain the copyright for remakes of several movies that had been big hits on

    the Korean market. Fox, Walt Disney and other direct-distribution companies also started to take
    Korean movies on board their global distribution runs. Most recently, Columbia signed a contract

    on world distribution and investment with a local production company.

    3. Large Korean enterprises join the race for film business

    In the turmoil of the national crisis and IMF aid, most of the funding for the film industry seemed to

    come to a halt as the major sponsoring companies became involved in corporate restructuring and

    attempted to do away with unnecessary expenses and investments. Nevertheless, not only small and

    medium funding but also financial capital were able to replace the void thanks to a series of Korean

    movie successes and the theatre franchising system for securing stable profits.

    As the film industry recovered from the monetary crisis thanks to this massive funding and to the

    constant production of quality movies, the situation was reversed. Competition on this market is

    becoming fiercer day by day and the major Korean enterprises with nationwide multiplex chains,

    represented by the Orion Group, CJ and Lotte, strive to strengthen their market leadership in terms

    of production and distribution, as well as exhibition. Another dark horse on the market, Cinema

    Service, has made the production and distribution of Korean movies its top priority and is now

    starting to open its own theatres. Significantly, it is already known that this company has concluded
    a merger deal with its foremost competitor, CJ, and the Orion Group and Lotte are expected to

    launch survival strategies that will lead the market into the second round.

    4. Bubbles & preparations for the bright scene

    “All-about big money, pour your money into the cinema” – this message circulating amongst

    Korean investors tuned out to betray their boundless belief in Korean movies. In the 2000-2001

    period the amount of money invested in the film industry soared to 201,500,000,000 Korean Won

    and these enormous figures led the market into a bubble trap, instead of developing it. This resulted

    in a serious problem for the Korean industry of “ineffectiveness”, due to the high marketing costs

    for surviving in the midst of keen competition and the failure of the overall scenario. Eventually, the

    film market has started to cool since last year.

    In conclusion, the Korean film industry will probably be managed by a few major investors and

    distributors this year, who will also be fierce competitors in a critical situation characterised by

    excessive demands for strictly limited funds.

    June-Kyoung Park

    Marketing Team Manager – Showbox

    You might also like