Film Industry Welcomes Cultural Ministry's Funding for Mid-Budget Films, Calls for Holdback System

연합뉴스 / 2024-09-10 09:19:00

▲ Minister Yu In-chon of the Ministry of Culture, Sports, and Tourism delivers a greeting at the '2025 Film Industry Budget Support Discussion' held on September 9, 2024, at the Education Building of the National Museum of Modern and Contemporary Art in Jongno-gu, Seoul. (Yonhap)

SEOUL, Sept. 10 (Yonhap) -- The Korean film industry has expressed its support for the Ministry of Culture, Sports and Tourism’s (MCST) allocation of 10 billion won in next year's budget to support mid-budget film production.

Key industry figures, including representatives from theaters, production companies, distributors, and investors, welcomed the announcement during a discussion on film industry funding held by Culture Minister Yu In-chon at the National Museum of Modern and Contemporary Art in Seoul on the 9th.

This marks the first time the MCST has held a discussion with filmmakers specifically about budget allocations, aimed at outlining next year’s support plans and gathering industry input.

Kim Tae-wan, CEO of Louis Pictures, which produced the 2023 film Sleep, remarked, "During the production of our film, it was difficult to secure funding due to COVID-19. I’m glad to hear the ministry is addressing the need for support in mid-budget films, which was lacking back then."

Director Lee Kyoo-man, known for A Bloody Aria (2011) and The Policeman’s Lineage (2022), emphasized the significance of this funding, saying, "The ministry’s support for film production is crucial. It will bring much-needed vitality and hope to creators recovering from the challenges of the pandemic."

The ministry announced a 12.5% increase in next year’s film industry budget, bringing the total to 82.9 billion won, with 10 billion won specifically allocated for mid-budget commercial film production. The goal is to alleviate the "rich get richer, poor get poorer" trend in the industry and encourage more creative, bold projects.

Minister Yu highlighted that private investment in films has not returned to pre-pandemic levels, stating, "The ministry will take a more active role in film support, but we will also ensure that selected projects are carefully vetted through demo videos, not just paperwork." He also stressed that film festivals would only receive support if they meet strict evaluation criteria.

▲ Minister Yu In-chon of the Ministry of Culture, Sports, and Tourism (far R) discusses agendas with movie industry leaders at the '2025 Film Industry Budget Support Discussion' held on September 9, 2024, at the Education Building of the National Museum of Modern and Contemporary Art in Jongno-gu, Seoul. (Yonhap)

Discussions also touched on the holdback system and rising ticket prices, which are major issues in the film industry. The holdback system involves setting a time gap between a film's theatrical release and its availability on IPTV or OTT platforms. Although not legally enforced in Korea, theaters generally support the system to boost box office performance, while OTT services oppose it, arguing it limits viewer access.

CGV CEO Heo Min-hoi stated, "Many viewers say they prefer to wait for films to be available for free on OTT platforms, which keeps them from going to theaters. Even if the ministry provides financial support, a film must be successful at the box office to create a positive cycle, which is why we need a holdback system."

MegaBox CEO Nam Yong-seok added, "Foreign filmmakers have observed Korea's lack of a holdback system and warned that it could ruin the film ecosystem. In contrast, France’s film industry has recovered to 90% of pre-COVID levels thanks to a well-implemented holdback system."

However, Minister Yu acknowledged the challenges, noting, "The ministry has been pushing for a holdback system, but the stakeholders have yet to reach a consensus."

Regarding the issue of whether theaters plan to lower ticket prices, which have steadily increased since the pandemic, theater representatives gave no clear answers. CGV's Heo stated, "If lowering prices leads to better business, we would consider it, but the current environment doesn't allow for that yet. We need to explore this issue further."