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Korean commercial film industry faces investment drought

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By KTimes
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Director Park Chan-wook, left, and actors Son Ye-jin and Lee Byung-hun pose during a ritual held before the start of filming for the movie 'It Can’t Be Helped.' This is the only new film currently being produced by CJ ENM. Courtesy of CJ ENM

Director Park Chan-wook, left, and actors Son Ye-jin and Lee Byung-hun pose during a ritual held before the start of filming for the movie "It Can’t Be Helped." This is the only new film currently being produced by CJ ENM. Courtesy of CJ ENM

The production of new Korean films has declined sharply as major investment and distribution companies tighten their purse strings.

The number of commercial films scheduled for release in theaters next year and the year after is expected to drop significantly, raising concerns that the struggling Korean film industry may plunge deeper into crisis.

“The major investment and distribution companies are barely reviewing new projects. In my 25 years in the film industry, this is the first time that both planning and production have come to a complete halt,” said an official from a film company.

According to industry insiders, the five major film investment and distribution companies in Korea (CJ ENM, Showbox, Lotte Entertainment, NEW and Plus M Entertainment) have only about 10 films either in production or in pre-production as of Monday.

Given that it typically takes about two years to produce a film, only around 10 films backed by these major companies are expected to be released in 2025.

Once the "shelved films" shot during the COVID-19 pandemic and awaiting release are exhausted, theaters are likely to be filled with low-budget independent films. The five major companies have traditionally dominated the Korean film industry by investing in and distributing large-scale commercial films.

CJ ENM's film 'The Moon,' released last year with a production budget of 28 billion won, attracted only 510,000 theatergoers. Courtesy of CJ ENM

CJ ENM's film "The Moon," released last year with a production budget of 28 billion won, attracted only 510,000 theatergoers. Courtesy of CJ ENM

CJ ENM in dire straits

CJ ENM, a dominant force in the Korean film industry since the early 2000s, is in an especially dire situation. Currently, it has only two films in production: Park Chan-wook’s new project "It Can’t Be Helped," (translated from Korean title) which began filming on Aug. 17, and "Pretty Crazy," which is in post-production.

Excluding "Pretty Crazy," which finished filming in 2022, CJ ENM has only one new film in production. The poor box office performance of several high-profile investments, such as "Alienoid Part 1" (2022), "The Moon" (2023) and "Escape: Project Silence" (2024), has significantly impacted the company.

According to the Korean Film Council’s "2023 Korean Film Industry Report," CJ ENM released eight Korean films last year.

CJ ENM is likely to downsize and reorganize its film division, with new investments in films expected to be suspended for the foreseeable future.

A CJ ENM official said, "There are no films currently in pre-production. While we haven’t confirmed any investments, we are reviewing several projects."

Showbox has three films awaiting production, and NEW has two. Last year, Showbox and NEW distributed three and 13 Korean films, respectively (excluding films distributed on behalf of other companies).

A Showbox official said, "Apart from ‘Three Days,’ we’ve released all the films we had in production. I’m more concerned about the film market next year than I was last year or this year."

Meanwhile, Plus M Entertainment is actively investing in new films. A Plus M Entertainment official said, "We have recently confirmed investments in several films and plan to continue investing for the time being."

Last year, Plus M Entertainment secured the top spot in Korean film distribution market share for the first time, with more than 10 million viewers for both "12.12: The Dayl" and "The Roundup: No Way Out."

Showbox which attracted 11.91 million viewers with 'Exhuma' is approaching new film investments cautiously. Courtesy of Showbox

Showbox which attracted 11.91 million viewers with "Exhuma" is approaching new film investments cautiously. Courtesy of Showbox

Rumors of exiting film business

The dwindling number of "shelved films" has further fueled the sense of crisis. According to a KOFIC report released on Aug. 16, there are 27 films preparing for release, 49 in post-production and 26 currently in production.

Of these 102 films, only about 50 could be classified as commercial films. Notable tentpole films include "Harbin" starring Hyun Bin, "Bogota: City of the Lost" starring Song Joong-ki and "The Nuns" (tentative title) starring Song Hye-kyo.

It’s not just the major companies tightening their wallets. A small investment and distribution company has reportedly decided to exit the film business entirely and focus solely on drama production.

As funding for films dries up, many film companies are increasingly turning their attention to dramas.

A veteran film industry professional who founded a film company after working at a major investment and distribution company said, "It seems that major investment and distribution companies view films as a marginal business. While we’re mainly planning dramas, the drama market isn’t doing well either, which is concerning."

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.