If the 100 percent tariffs go forward, Korea may see local streaming platform, non-English market growth, experts say
On May 4, US President Donald Trump declared 100 percent tariffs on all foreign-made films, arguing that aggressive incentives from other countries were driving productions abroad and threatening the survival of the US film industry.
No additional information has since been provided on how the tariffs will be imposed and the lack of details in the announcement has drawn backlash from governments and entertainment industries around the world.
France’s culture minister has since pledged to defend the country’s support system for local cinema, while Australia’s film industry has urged actor Mel Gibson -- who started his career in Australia and is reportedly an advisor to Trump -- to intervene.
India’s film sector, which earns about 40 percent of its international revenue from the US, expressed concerns that American distributors might reduce their acquisition of Indian films, potentially pushing the industry further toward digital platforms.
Major Hollywood studios and US entertainment guilds have also warned that the tariffs could increase production costs and harm international box office performance, which now far surpasses domestic earnings.
In South Korea, the response to Trump's announcement of the 100 percent tariffs has been more measured.
Given the relatively small share of US-bound film exports, experts say the immediate impact on South Korea’s film industry is likely to be minimal.
According to data from the Korean Film Council, the export value of Korean films in the past year totaled $41.93 million. Of that, only $4.21 million -- around 10 percent -- came from exports to the US.
“Korean film exports are mostly for video release (such as CD or video on demand content) rather than theatrical screenings,” said Kim Yoon-zi, a senior researcher at Export-Import Bank of Korea.
“A large portion of Korea's movie exports goes to Asia, particularly Japan, while relatively little is exported to Europe or the US. If tariffs are imposed only on film prints, the impact is unlikely to be significant for Korea.”
Possibly due to the anticipated minimal impact, major production companies including CJ ENM, Studio Dragon and SLL said they have yet to issue any formal guidelines in regards to the recent announcement, instead adopting a wait-and-see stance as the specifics of the tariffs remain unclear.
However, Kim warned that the financial fallout could extend beyond exports.
“When foreign productions shoot on-location in Korea, we earn revenue from location fees -- and that amount actually exceeds our film export earnings to the US. Potential losses in this area could be more significant,” said Kim of Export-Import Bank of Korea.
Streaming and series: a potential silver lining
Given the unclear criteria as to what Trump's tariffs will apply to, experts note that if the scope expands to include streaming originals and series, there could be a silver lining: A potential retreat by Netflix and Disney+ might open the door for local platforms to regain market share.
“From the perspective of domestic streaming platforms, tariffs could actually work in their favor by putting pressure on Netflix and Disney, giving local services some breathing room,” said pop culture critic Kim Hern-sik. “Korean terrestrial broadcasters and network productions may also see a rebound, with fewer Korean originals being commissioned by Netflix due to tariff constraints.”
The tariffs could also prompt Korean producers to pursue growth more actively in non-English-speaking markets, where they are already seeing steadily increasing returns. Recent hits such as "When Life Gives You Tangerines," "Karma" and "Weak Hero" have performed strongly across non-English markets, underscoring a growing appetite for K-content globally.
“Just a few years ago, our main goal was to make it onto American rankings and to be judged by US critics. But now, the trend is changing. Streaming service platforms have become more global, with their user bases have becoming more diverse,” said Kim Hern-sik.
The Korea Creative Content Agency, a government organization under the Ministry of Culture, Sports and Tourism, has made localized content a key pillar of its global expansion strategy. The agency currently operates 25 overseas business centers around the world, which serve as hubs for distributing and creating content tailored to local audiences.
Of the 25 centers, six are located in English-speaking countries, while the rest are spread across non-English-speaking regions. KOCCA said it plans to open five additional centers this year as part of its continued push into global markets.
"We have an overarching strategy to strengthen the localization of diverse content, tailoring it to fit various markets in a more customized way," a KOCCA official said.
Tving, one of South Korea’s largest streaming platforms, is also preparing for full-scale global expansion, targeting markets with strong demand for K-content such as North America, Southeast Asia and Japan.
To minimize up-front costs, the company said it plans to adopt a direct-to-consumer business model, first showcasing its content through branded sections before directly acquiring users. Tving said it aims to reach 15 million subscribers by 2027, with an even split between domestic and international users.
A merger with rival platform Wavve, which has been a long-held initiative for Tving in recent years, is seen as key to achieving the goal. According to Tving, the merger would not only boost subscriber numbers but also secure sufficient content to compete globally.
“Merging with Wavve would create a virtuous cycle -- expanding our subscriber base would increase our capacity for content investment, which would accelerate global expansion,” Tving CEO Choi Joo-hee said in a February earnings call.
yoonseo.3348@heraldcorp.com
