Movie ticket tax cut raises concerns for indie film support
No customers are seen at the ticket kiosks of CGV Yongsan I'Park Mall, Monday. Korea Times photo by Lee Seo-hyun
The government's decision to abolish the surcharge on movie tickets to combat inflation has drawn negative reactions from moviegoers and raised concerns about potentially significant impacts on support for independent and art films.
The initiative, part of a broader effort to address "shadow taxes," was expected to lighten the financial burden on consumers by removing a 3 percent charge on movie ticket fees. However, with a ticket priced at 15,000 won ($11), the reduction of approximately 500 won has not been felt as a significant saving by the public amid overall rising prices.
A moviegoer surnamed Yu, a 26-year-old who visited the cinema to watch "Dune: Part 2," expressed skepticism about the measure's impact on their cinema-going habits. "With fruit and vegetable prices at the supermarket more than doubling, I doubt a 500 won drop in ticket prices will get me to go to the movies [more often]," Yu said.
The sentiment reflects a broader concern that while the intent was to ease consumer expenses, the actual effect on individual spending habits, especially in the context of soaring living costs, remains negligible.
This policy shift, announced as part of a wider government initiative to eliminate "shadow taxes" last month, has not only stirred debate among moviegoers but also sparked anxiety within the film industry.
A digital sign shows movie screening times and available seating information at a theater in Seoul, March 24. / Yonhap
The surcharge, though small, has contributed significantly to the cinema development fund run by the Korean Film Council, a crucial source of support for independent and artistic film projects for the past 17 years. The potential reduction or discontinuation of this funding stream has alarmed many in the industry, who fear a detrimental impact on the production and promotion of a diverse range of cinematic works.
Industry professionals and cinema chains find themselves in a precarious position. While the abolition of the surcharge theoretically offers a chance to lower ticket prices, the lack of a legal mandate to do so, combined with the procedural delays in amending the relevant laws, means that ticket prices may not see a substantial decrease.
Baek Jae-ho, chairman of the Association of Korean Independent Film and Video, said, "There were calls for improvements due to the instability of the cinema development fund, but I didn't expect it to be abolished without consultation. Given the government's history of policies against the film industry, there's considerable anxiety."
The film industry's reliance on the surcharge for the development fund highlights a broader issue of funding for cultural initiatives.
Hwang Jae-hyun, an official from CGV, one of Korea's largest multiplex chains, said, "We still have a significant deficit accumulated from the COVID era. While the removal of the surcharge could improve profitability, whether it will lead to a reduction in ticket prices remains to be seen."
This year's budget for the Korean Film Council was reduced by over 100 billion won from last year's 850 billion won to 734 billion won. The budget supporting the revitalization of local film culture, which was nearly 12 billion won, has been eliminated, and film festival support has been more than halved.
This article from the Hankook Ilbo, sister publication of The Korea Times, was translated by generative AI and edited by staff members of The Korea Times.