Korean theaters face worst slump in 21 years, annual audience may fall below 100 million

A scene from “Omniscient Reader,” which is set to premiere in mid-July / Lotte Entertainment

Korea’s film industry is bracing for its worst first-half performance in over two decades, with projections showing that this year’s total moviegoer tally could fall below 100 million for the first time since 2004, excluding the pandemic years.

According to data from the Korean Film Council released on June 23, a total of 40.73 million people had visited theaters through June 22. Based on the average weekly attendance of around 1.42 million, the number is expected to reach only about 42 million by the end of June.

If the trend continues, this will mark the lowest first-half turnout since 2004, when 21.82 million people went to the movies, discounting the pandemic-affected years of 2020 and 2021.

By comparison, the first half of 2022, when the industry had just begun recovering from COVID-19, saw 44.92 million viewers. Last year’s first-half figure was 62.93 million, with the total audience reaching 123.12 million.

The year’s box office leader so far is the Korean film “Yadang: The Snitch,” which has drawn 3.37 million viewers, a figure that would have ranked only seventh last year. The second-highest performing film, and top foreign title, is “Mission: Impossible – The Final Reckoning,” with 3.3 million viewers.

“Mission: Impossible – The Final Reckoning” tops the box office among foreign films in the first half of the year. Courtesy of Lotte Entertainment

By contrast, last year’s No. 1 film in the first half, “Exhuma,” had over 11.91 million moviegoers. Top-grossing domestic films in 2023, including “The Roundup: No Way Out,” “Inside Out 2,” “Veteran 2” and “The Pilot” all saw significantly higher numbers than this year’s leading releases.

If the current slump extends into the second half, total annual attendance could fall short of 100 million, a symbolic benchmark for Korea’s film industry.

Since surpassing 100 million moviegoers in 2005 (123.3 million), the industry had consistently maintained that level, except during the pandemic. It peaked in 2019 with 226.67 million.

This year’s numbers are especially alarming considering the number of screens nationwide has more than doubled from 1,648 in 2005 to 3,296 as of 2024.

Experts say the downturn stems from a combination of factors, including prolonged consumer pessimism, the rise of streaming platforms and ongoing economic stagnation following political turmoil following the short-lived Dec. 3 martial law imposition.

Many are concerned that the current slump could continue into next year, as the backlog of delayed releases during the pandemic — often called “warehouse films” — has already been exhausted, and new productions have declined sharply.

The film “Yadang: The Snitch” draws 3.37 million viewers to top the box office in the first half of the year. Courtesy of Plus M Entertainment

Some hope lies ahead, however, as the government plans to distribute consumer relief coupons if the supplementary budget passes the National Assembly.

Starting mid-July, moviegoers may receive up to two rounds of “living cost relief” vouchers and 4.5 million cinema discount coupons worth 27.1 billion won ($19.6 million). Each person can use up to four coupons, with a 6,000 won discount per ticket.

These discounts will coincide with the traditional peak movie season in late July and early August. Domestic releases like “Omniscient Reader,” “My Daughter Is a Zombie” and “Pretty Crazy” are slated to open during that period, alongside Hollywood blockbusters such as “Jurassic World Rebirth,” “Superman” and “The Fantastic Four: First Steps.”

“We expect a box office rebound around late July and early August,” said Hwang Jae-hyun, a strategy executive at CGV. “With ‘Avatar: Fire and Ash’ set to premiere later in the year, we’re hopeful the annual audience figure will still surpass 100 million.”

This article from the Hankook Ilbo, a sister publication of The Korea Times, is translated by a generative AI and edited by The Korea Times.