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2013 set a new best year record for the Korean film industry. The Korean Film Council (KOFIC, Chairman: KIM Eui-suk) reported that last year’s total revenue reached an impressive USD 1.74 billion (KRW 1.88 trillion). This success came as a result of an increase in box office sales and also the recovery and expansion of international exports and alternative markets. Korean cinema’s previous record year was 2004 .

 

International sales and exports also saw positive upswings. Successes in overseas markets generated USD 37 million in 2013. This represented a significant increase of 83.7% over 2012. The rise was mostly due to Snowpiercer, which almost surpassed the amount of the remaining Korean exports combined.

At the same time, revenue for outsourced overseas technical services went up 71% from 2012, reaching USD 19 million. These services, generally for VFX and Digital Imagery, were mostly provided in China and Hong Kong, which accounted for 75.8% of the total.

 

The online film market saw growth of 24.0% thanks mostly to IPTV and Digital Cable (TV VOD) which grew 32.6% over last year, recording revenue of USD 160.6 million (KRW 173.7 billion) and taking up 64.9% of the total market. Also, internet VOD hit USD 67.4 million (KRW 72.9 billion) after a 18.0% increase. On the other hand, packaged programs are on the downslide since 2012, with a 8.7% decline. The popularity of local cinema was clear even within the alternative market as the top ten titles in TV VOD were all Korean films.

 

63 commercial local films went on wide release in Korea in 2013 and ROI rose to 15.2% from 2012’s 13.3%. This is the highest ROI since 2002 and as the overseas sales of films that targeted the global markets are not reflected in the number; a higher ROI can be expected when all figures are accounted for. After the period of 2006 through 2011 saw negative returns, the industry got back on its feet and is currently experiencing a stable period. 19 films went over the break-even point out of the 63 released, with eight of those surpassing a 100% ROI.

 

2013 marked an unprecedented success for Korean cinema. During the recession between, the industry had been busy with planning and improving its production system. It is likely that this boom will continue into 2014. With the “Korean Cinema Growth Together Action Plan” established in early 2013, the industry is working towards long-awaited change, evolving to create a safe and healthy working environment.