Government announces record funding increase as local cinemas struggle with postpandemic downturn
South Korea will pump 149.8 billion won ($108 million) into its film industry next year, an 80.8 percent jump from this year’s budget, the Culture Ministry said Friday. It marks the sector’s largest allocation outside emergency pandemic relief in 2022.
The funding package allocates 8 billion won for planning and development, up from 4.7 billion won. Midbudget films combining commercial and artistic appeal will receive 20 billion won — double the current amount. A new 1.7 billion won fund will support production companies with proven track records.
Independent and art house cinemas will receive 1.8 billion won through a new distribution support program. Film festival funding increases to 4.8 billion won from 3.3 billion won, partially reversing cuts imposed by the previous administration that saw the number of government-funded festivals drop from 40 to 10.
The government will inject 70 billion won into the Korea Creative Content Agency’s film account to create a 140 billion won investment fund, doubling last year’s contribution. Technology initiatives include 2.2 billion won for AI-powered production and 16.4 billion won for a virtual production studio in Busan.
The announcement comes as Korean cinema faces its worst crisis in decades. Theater attendance through July totaled just 50 million tickets, putting the industry on track for its lowest annual figures since 2004, excluding pandemic years.
Film production has plummeted to fewer than 20 titles with budgets exceeding 3 billion won this year, down from approximately 100 in prepandemic years.
Culture Minister Chae Hwi-young described the situation as critical during a press conference Thursday. “The film industry needs CPR-level emergency measures,” Chae said. “Without urgent intervention, the ecosystem could collapse within years.”
The budget increase fulfills campaign promises by President Lee Jae Myung, who took office June 4 after winning a snap election triggered by former President Yoon Suk-yeol’s impeachment and removal from office. On the campaign trail, Lee pledged to strengthen Korea’s cultural industries as part of plans to make the country "one of the world’s top five soft-power powerhouses."
In July, the government launched a ticket discount program offering 6,000 won reductions to boost theater attendance. The initiative ran through Sept. 2, pushing daily admissions up by 80 percent compared to before the program started, according to the Culture Ministry. On Wednesday, officials distributed an additional 1.88 million unused vouchers in their latest push to draw audiences back to theaters.
“Korean cinema has grown through remarkable talent and creativity,” said Jung Sang-won, the Culture Ministry’s content policy director. “We will provide comprehensive support to ensure it reclaims its position as a leader in K-content.”
The budget requires a parliamentary vote before taking effect next year. Lee’s Democratic Party of Korea currently holds a solid majority in the legislature.
moonkihoon@heraldcorp.com
