Pinterest
NewsLetter DailyWeekly
 
My HanCinema | Sign up, Why ? Your E-mail   Password    Auto| Help
HanCinema :: The Korean Movie and Drama Database, discover the South Korean cinema and drama diversity Contact HanCinema HanCinema on TwitterFaceBook HanCinema PageHanCinema on Twitter

Korean Film Industry Faces Financial Crisis

2005/06/02 | 376 views | Permalink | Source

The warning lights are flashing on Chungmu-ro, the center of Korea's film industry as public funding runs out. The liquidation date for most of the W260 billion (US$260 million) movie fund for film production between 2000 and 2002 comes up at the end of this year, and the Small and Medium Business Agency's anticipated first-round contribution of W250 billion to the film fund has come out to no more than W7 billion.

The movie fund was an idea hatched by the film world following the Asian financial crisis of 1997, when the Small and Medium Business Agency, Korean Film Council and other government agencies and private investors came together to set up a fund to boost film production. Under the Kim Dae-jung administration, W260 billion were raised, and the fund became the seed money behind the renaissance of Korean film. CJ Entertainment and Showbox Mediaplex, the two biggest patrons in the film world, invested W85 billion and W36 billion respectively in film production in 2004 alone.

But most of the fund expires either at the end of the year or soon after. And although the development partners aren't saying, the fund records on average minus 13-15 percent profits on investment, so existing investors have lost their enthusiasm.

Despite what seemed like a string of industry success last year, with "Silmido" and "Taegukgi" drawing more than 10 million viewers and Korean films taking awards at international festivals, the reality was much grimmer, with one production company after another recording losses. According to investment and production firm IMPICTURES, only 25 of 71 films released in 2004 turned profits at the box office; the remaining 63 percent didn't even make back the initial investment.

What shocked the film industry even more was the announcement late last year of the Small and Medium Business Agency's 2005 investment plan, when the agency allotted a total of no more than W60 billion for investment in all sectors, including IT and ventures. Production company Kiheck Shidae president Yoo In-taek said despondently, "When you take away funds for ventures and other sectors, the allotment for the film fund comes to only W7 billion".

Some point to problems within the film industry. Cho Sang-hee of Isu Venture Capital said, "It's true that due to losses existing fund investors have lost interest, but there are still moves to create a new movie fund with capital from telecom firms like SKT and KT... But it's the film industry that must urgently create a system that cuts production costs, especially by adopting transparent accounting standards".

LJ Film president Lee Seung-jae said, "In the long term, we need to adopt other profit models such as cultivating overseas markets, but we urgently need our own independent and stable capital if we want to do this".

Source : www.chosun.com...

Attention You're reading the news with potential spoilers, make them spoiler free, dismiss


 

 

 Previous news
  • "I Have Chi Coming Out of My Fingertips Now"
    2005/06/02 (Source)
    by Dong-YongMin

    "I first met Dong-won and saw his sad eyes. And that was that", said director Lee Myung-se.

    It didn't take long for actor Gang Dong-won (24) to be cast as the lead in Lee Myung-se's new film "Detective". After all, the character's name is supposed to be "Sad Eyes".

    At the Se,...
    More

  • "The Story Is on Unification!": Funny, But That's It
    2005/06/02 (Source)
    The movie "A Bold Family" forces one "to laugh and laugh" based on its unique theme of "unification fiction". Actor Kam Woo-sung, known for being serious and genuine, virtually degrades himself for the role, and actor Kim Soo-ro, a "guarantee check" for comedy, talks on and on in improvisation. The ,...More

  • Local and Foreign Films With English Subtitles
    2005/06/02 (Source)

    Indieforum 2005

    Until June 6

    Seoul Art Cinema

    The festival of independent filmmaking celebrates its 10th anniversary from Saturday for 10 days with a total of 29 various new works showing. The event will also screen a selection of 20 films from the previous events as well as 19 movies inv,...
    More

Subscribe to HanCinema Pure to remove ads from the website (not for episode and movie videos) for US$0.99 monthly or US$7.99 yearly (you can cancel anytime). The first step is to be a member, please click here : Sign up, then a subscribe button will show up.

Settings

Remove ads

Sign up

Sharing

Activate

Spoilers

Visible, hide

Learn to read Korean in 90 minutes or less using visual associations