Although Korean films have a stellar reputation for quality and storytelling, a challenging theatrical market in Korea and overseas is impacting their international success 

※ The contributions of external writers may differ from the opinions of KoBiz & KOFIC, and they do not represent the official views of KOFIC. 

Parasite, by Bong Joon Ho. © CJ Entertainment. 

There must be many film industries around the world who regard Korean cinema with envy. Following the success of Bong Joon Ho's Oscar-winning film Parasite, and with the global popularity of K-pop and K-dramas, Korean films have a 'brand awareness', backed up by a reputation for quality and strong storytelling, that very few other countries can match.

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And yet, the producers, filmmakers and international sales agents toiling away at the coalface of Korean cinema are probably not feeling like this is a golden era. Interest in Korean films hit a high point with Parasite's multiple awards at the Oscars in 2020, but the ceremony coincided with the start of the pandemic and removed any chance for the Korean industry to capitalise on the film's success. Cinemas across the world were shuttered, audiences turned to streaming platforms, and in most countries, the box office hasn't fully recovered since.

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But perhaps the Korean film industry's biggest headache is in their home market, where total box office reached only $964m in 2023, which is 45% below pre-pandemic levels, according to Korean Film Council figures. While there have been a few big hits over the past year - 12.12: The Day, Exhuma and The Roundup: Punishment - the Korean market has become polarised with many local films performing far below expectations at the box office.

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As the distributors of Korean films around the world explain, this has a knock-on effect on the films' performance in the international market. "These days, Korean films are facing significant challenges at the box office. Success [in the US] often hinges on their performance in Korea itself, especially since many of our Korean films cater to the Korean diaspora," explains Doris Pfardrescher, CEO of Well Go USA, one of the biggest buyers of Korean movies.

Decision to Leave, by Park Chan-wook. © CJ ENM.  

In the huge North America market, Korean films can also be distributed directly by a Korean studio such as CJ ENM, or in the case of films with Oscars potential, through distributors that can spend on an awards campaign, such as Neon (which distributed Parasite) or MUBI (Park Chan-wook's Decision To Leave). However, most Korean films go through a distributor such as Well Go USA that specialise in Asian cinema and know how to reach diaspora audiences.

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Well Go USA's best-performing Korean films since the start of the pandemic include Yeon Sang-ho's Peninsula, which grossed $1.23m in 2020, and Jang Jae-hyun's Exhuma, which has taken $2.3m since its March 2024 release. "Peninsula's success is due to its association with the beloved Train To Busan franchise, which already had a dedicated fan base, while Exhuma found success with its unique storyline and also appealed to both older and younger audiences," Pfardrescher says.

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Elsewhere in the world, Korean box office results are also a major influence in Asian markets. "We closely follow what is happening to Korean films in their home country," says Ashwani Sharma, founder of Indian distributor Impact Films. "If a film does well in Korea or a big market like the US, we are more likely to do a theatrical release in India."

Exhuma, by Jang Jae-hyun. © Showbox Corp. 

Impact Films has handled Indian theatrical releases for films including Parasite, Exhuma and Broker. But as India is a crowded theatrical market, the company also releases many titles (including Cobweb, Concrete Utopia and Confidential Assignment 2) directly to streaming platforms.

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"When we dub into Hindi, Tamil and Telugu, we get much bigger numbers on OTT than if we release the film in Korean with English subtitles," Sharma explains. However, he adds that it's getting tougher to do OTT deals as Netflix is focusing on the Korean content it has produced in-house and other streamers are reducing acquisition costs.

Meanwhile, East Asia remains a strong market for Korean films, despite being excluded from mainland China since 2016 for political reasons. Southeast Asia is currently one of the brightest spots, with Exhuma becoming the highest-grossing Korean film of all time in Vietnam and Indonesia, grossing around $7m in each market.

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Yunjeong Kim of Korean sales agent Finecut explains that while some genres such as creature and disaster movies are universal, Asia's preferred genres can be different to those of Western markets: "While thriller and action genres have a stronger positive impact in Europe and the US, Southeast Asian countries tend to show stronger interest in horror, tear-jerking romance, touching family stories or comedy genres," says Kim.

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Phong Duong, a senior manager at Vietnam's Mockingbird Pictures, explains that Southeast Asian audiences can easily relate to the cultural and emotional aspects of Korean content, while cast and storylines also influence a film's performance: "When we acquired Exhuma, we thought it would be a hit based on the genre, mysterious story, talented director and popularity of the cast." However, he adds that it was the film's success in Korea that pushed it to another level: "The film gained more attention when it became a phenomenon at the Korean box office."

Korean film sales agent Finecut’s booth at the 77th Cannes Film Festival. 

The picture is slightly different in Europe where genre is still a factor, but audiences pay less attention to Korean box office results and are more influenced by film festival buzz and big-name directors (including Bong Joon Ho, Park Chan-wook, Lee Chang-dong, Hong Sangsoo, Kim Jee-woon and Na Hong-jin). However, Kim explains that there are certain Korean stars - such as Don Lee, who is known from Train To Busan, or Lee Jung-jae, known from Squid Game, who can also positively impact a film's reception.

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Sales agents and distributors agree that film festivals have become more important than ever in the crowded but contracting post-pandemic theatrical landscape. Exhuma and The Roundup: Punishment both started their international rollout in Berlin. And while just one Korean film premiered in Cannes this year (Ryoo Seung-wan's I, The Executioner), the industry is looking forward to the launch of several titles during the autumn festival season - including Hong Sangsoo's By The Stream in Locarno, and Woo Min-ho's Harbin and E.oni's Love In The Big City in Toronto.

I, The Executioner, by Ryoo Seung-wan. © CJ ENM. 

The eternal question is how to expand the market for Korean films beyond the big genres, stars and 'brand name' directors towards independent films and emerging filmmakers. Film festivals can play a role in this mission, but given the current dynamics of the market, it's difficult to find distributors who will commit to a theatrical release for smaller films.

Sonali Joshi, founder of UK distributor Day For Night, which recently released July Jung's Next Sohee, says it was tough getting cinemas and audiences on board for the film, although she was encouraged by strong reviews in the British press: "I don't think it's anything specific to Korean films, it's a challenge we've faced with many Asian titles we've released in the UK. Funding is of course always an issue, so if a distributor is able to access more support for larger campaigns then that's always going to help."