Theatrical markets around the world have struggled to rebound to box office levels seen before the COVID-19 pandemic arrived in 2020. No territory has seen as steep a decline as South Korea, whose 2023 totals were still 44% lower than 2019, well below the recovery rates of any other major market.
2019 was halcyon days for South Korea’s movie industry, with the box office registering as the fourth largest global market. Given the country’s relatively small population, it led the world with per-capita revenue from cinema attendance. One factor that set South Korea apart from other international markets was the strength of its local film production, which accounted for over 50% of ticket sales in 2019. Famously, Bong Joon-Ho’s PARASITE became a global hit, going on to win the Oscar for Best Picture at the 2020 Academy Awards.
While the local film market had been a key strength for South Korea before the pandemic, its output has been significantly curtailed since that time. Local studios have been less prolific, with fewer mid-market successes than in the North American market. After a handful of mega-hits such as EXHUMA and 12.12: THE DAY, the 2023 release calendar was populated with a long list of movies that struggled to break through. This has led to a growing number of theatre closures, and angst over the long-term outlook for exhibition.
The government is taking steps to support local exhibitors, with an announcement in January that any film that receives state funding will be required to begin its release with a theatrical run of at least four months. It will be interesting to see if this mandated theatrical run winds up producing more income for theatres, and their studio partners, and thereby supports the recovery of South Korea’s local film industry.