Cause {Can’t Resist}

A Brief Primer for Understanding the Effect of the Screen Quota System on South Korean Film Production and Distribution

I originally wrote this article on March 9, 2006. (I apologize for lack of source citations.) It also does not reflect the current success of Bong Joon Ho’s 괴물 (The Host), although the points raised here are nonetheless relevant, I feel anyway.

The System Defined
The screen quota system, first introduced by the South Korean government in 1966, mandates that South Korean theatrical chains exhibit local films for at least 146 days out of the year, translating to roughly 40 percent of the country’s screen real estate.

It is fundamental in understanding that South Korean cinema has, as of recent years, become a major player in the worldwide film economy, recently surpassing Germany to become the 5th world’s largest movie market.

While it is believed that the success of the Korean film industry owes much to the current screen quota system in place, it is widely presumed that the industry’s success has also been the primary reason as to why, due both to local and foreign pressure, the Korean Screen Quota System will be reduced from 146 days out of the year to 73 days come this July.

A Fair Playing Field
While public figures such as filmmaker 박찬욱 (Park Chan-Wook, Old Boy) and actors 이준기 (Lee Jun-Ki, The King and the Clown) and 문소리 (Moon So-Ri, Oasis) have expressed their public dissent, the nature of the issue isn’t nearly as simple as one would first think.

With the reduction of the screen quota system, it is posited by both Korean and American film conglomerates alike that the reduction will, in the long term, produce a greater variety and overall greater quality of films made available in South Korean theatres.

Seen by some as a crutch that is no longer needed, the South Korean film industry has long been criticized for churning out “by-the-number” genre films steeped in well-worn melodramatic and comedic tropes.

Unfortunately, the reduction is seen by many Korean industry veterans as a great threat to South Korean film productions. The quota, heralded as a safety net that encouraged production studios to take financial risks on young and upcoming talent, created a dynamic that led to record box office results for local Korean films, a unique fact in this day and age where most foreign markets are dominated by Hollywood product.

Hollywood vs. Chungmuro

The historical drama 왕의남자 (The King and the Clown), directed by 이준익 (Lee Jun-Ik), in it’s 67 day theatrical run sold over 11,750,000 tickets.

It is now the highest grossing film in South Korean history. (ed. Bong Joon Ho’s The Host has recently surpassed this mark.)

The fantasy drama 웰컴 투 동막골 (Welcome to Dongmakgol), the highest grossing film in South Korea for 2005, was directed by 박광현 (Park Kwang-Hyun).

This was his first feature film.

Art house mainstay Park Chan-Wook’s latest film 친절한 금자씨 (Sympathy for Lady Vengeance), competing in both the prestigious Cannes Film Festival and Berlinale Film Festival, was simultaneously a major hit with Korean audiences.

Sympathy for Lady Vengeance became the 7th highest grossing film of 2005.

It is of importance to note that most local films in South Korea are released with only modest advertising campaigns, where the weeks following the initial market release prove to be more important as word of mouth will either boost or condemn a film’s box office fate.

It is in this respect that the reduction of a screen quota falls more in favor of Hollywood studios than Korean productions. The most obvious effect being that Korean films will have significantly less time to earn money throughout a truncated theatrical run.

While production costs are expected to remain steady, marketing costs could increase due to a limited theatrical run. Unfortunately, major Korean distribution companies such as CJ Entertainment and Showbox do not enjoy the enormous after-market DVD sales that many Hollywood companies rely upon, where video rental and sales revenues can often eclipse a film’s box office total.

Overall, it is mainly due to production companies like Film It Suda and iFilm who are willing to produce films with young directors who have gained critical clout, either in Korea or abroad, but have yet to prove themselves as a financially viable investment.

The rise of international interest in South Korean cinema could, on the whole, negate any adverse effects the reduction of the screen quota might have, but for now, it remains to be seen if any of the more “risky” productions will continue to be funded in a “Post Quota” industry.