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MI of Ministry of Culture, Sports and Tourism (Ministry of Culture, Sports and Tourism)

While Korean content continues to gain recognition at international film festivals and global streaming platforms, the foundation of Korea's domestic film industry is showing significant cracks. In a recent interview with foreign media, director Park Chan-wook characterized the current state of Korean cinema as being in "serious crisis."

The Ministry of Culture, Sports and Tourism announced plans to establish an 81.8 billion KRW (approximately $61 million USD) policy fund for the film sector in 2026, increasing the government's investment ratio from 50% to 60%. The move represents the government's willingness to absorb greater risk and stimulate investment at a time when private sector funding has significantly retreated.

The policy fund comprises three components: a mainstream Korean film investment fund, a low-to-mid-budget Korean film fund, and an animation-specialized fund. The centerpiece is the 56.7 billion KRW mainstream investment fund, which aims to move beyond the industry's project-based structure by supporting production companies' intellectual property (IP) acquisition and nurturing small-to-medium specialized production houses. The low-to-mid-budget fund will target projects with production budgets under 3 billion KRW, while the animation fund will invest in Korean animation SMEs and projects to expand genre diversity.

"Investors are not pursuing bold stories but only investing in safe projects. This poses a significant risk to the film industry."

— Park Chan-wook, in interview with foreign media

On January 26, the National Assembly hosted a forum on "Improving Film Ticket Discount Systems," organized by the Korean Filmmakers Alliance and Distributors Alliance. With officials from the Ministry of Culture, Sports and Tourism and the Fair Trade Commission in attendance, the film industry brought structural problems in the current ticket distribution system to public attention.

The core issue centers on telecommunications companies' bulk purchasing practices. Lee Hwa-bae, representative of the Distributors Alliance, explained: "Telecom companies purchase tickets in bulk from theaters at approximately 7,000 KRW and resell them to customers at 11,000 KRW, capturing the largest profit margin while contributing nothing to film production or investment." Ticket sales through telecommunications companies are estimated to account for approximately 50% of total sales volume.

The film industry called for legislative solutions including amendments to the Act on Fair Transactions in Large Retail Business, the Act on the Film and Video Industry, and standard contract revisions. Kim Ji-hee, director at the Ministry of Culture, Sports and Tourism, responded positively to the retail business act amendment while noting that "amendments to the Film and Video Act raise concerns about effectiveness due to lack of investigative authority." Ryu Yong-rae, director at the Fair Trade Commission, stated the agency is "reviewing whether abuse of superior bargaining position provisions can be applied, given the absence of direct transaction relationships between telecom companies and distributors."

The policy fund targets the supply side (production) while ticket revenue reform addresses the revenue side (recirculation). Industry observers note that both policies must work in tandem to restore the virtuous cycle of investment → production → exhibition → revenue → reinvestment.

However, structural limitations remain. If production companies maintain box office-focused investment decisions and recovery pressures, the policy fund risks being channeled into conservative projects. An industry source explained, "The key question is whether policy funding can translate into diversity and sustainability in the production environment." Meanwhile, ticket revenue reform faces the challenge of reconciling conflicting interests, particularly given multiplex chains and telecom companies' effective resistance to cooperative negotiations.

National Assembly member Lee Jung-moon emphasized, "The National Assembly will also work to supplement inadequate current laws so that the film industry can achieve win-win cooperation and mutual development." Whether these policy initiatives move beyond short-term relief to restore a sustainable film ecosystem remains to be seen.

Sources

• E Today, "Park Chan-wook Warns of 'Serious Crisis'... Will 81.8 Billion KRW Government Fund Be Korean Film's Relief Pitcher?", 2026.01.25

• MaxMovie, "Film Ticket Settlement, Now Transparent... Film Industry Meets with Government",  2026.01.20

• Sports Kyunghyang, "Telecom Companies Making No Contribution to Film Production Take Largest Profits Through Ticket Sales... National Assembly Forum on Film Ticket Discount System Reform", 2026.01.27