Film industry faces 'existential threat'

Film industry workers gather in front of the National Assembly, Dec. 21, 2021, to call for government support to revive the industry. Korea Times file

By Kwak Yeon-soo

Some 500 film industry workers jointly released an official statement on Wednesday, asking the government to set up fundamental measures to revive the industry.

“The decline in box office sales due to COVID-19 has posed an existential threat to the film industry. Small- to medium-sized creators, producers and distributors are having the worst time ever. We cannot overcome the current crisis merely with measures such as encouraging the release of big-budget films or distributing discount coupons,” the statement read.

Before the COVID-19 pandemic hit, the aggregate number of moviegoers in Korea set a new annual record in 2019, surpassing 220 million, and five films screened here attracted more than 10 million moviegoers each. Korea has become the fifth-leading film market by gross box revenue, and “Parasite” became the first foreign language film ever to win the Best Picture award at the Oscars.

“Behind the boom, there was a market failure in which small movie studios and distribution companies grappled with an uncertain future and cinemas were dominated by a few major theater chains. The fundamental way to overcome the current crisis is to establish a fair market order for a 'virtual cycle' of content creation,” they argued.

Apart from calling for emergency relief funds, the group asked for prompt and active assistance for all film industry workers and that the government actively resolve any unfair trade practices and screen monopolies.

They also called on the government to prohibit large companies from using support funds for small- and medium-sized enterprises, and establish a system for holdback periods, in which multiplex chains hold the distribution rights before the films are circulated on other platforms.