South Korea’s Screen Quota Slashed in Half
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By Nigel D'Sa
Editor / Writer
In an abrupt turn-around the South Korean government announced a day before the Lunar New Year's holiday weekend, that it would reduce Korea's screen quota system by half.
The decision, which goes into effect July 1, 2006, will cut the number of days a theater is required to show domestic films from 146 to 73 days a year. This shrinks the minimum screen time for Korean films from 40 to 20 percent, allowing U.S. movies a greater chance to dominate the box office.
The cuts were pushed through by Finance Minister Han Duck-Soo in an effort to grease and appease Washington into concluding a bilateral trade agreement. Korea's tough stance on the screen quota had remained a stumbling block to talks. Government officials remain divided on the issue. A week earlier the Culture and Tourism Ministry had asserted the current quota level would not be changed.
South Korea first introduced the screen quota system in 1966 setting the annual screen time for local films at a 33 percent minimum. In 1985 it was raised to 40 percent, however it was not until the early 90's that the guidelines were taken seriously and enforced. The local industry began to stabilize paving the way for the boom years with the success of Shiri in 1998. With more and more runaway hits and diversity in the local market, South Korean films edged past a 40 percent market share and continued to grow.
Those in favor of the cuts argue that since the market share for Korean movies has held at over 50 percent since 2004, the system has outlived its usefulness and only serves to stall FTA talks with the U.S.
However, the cuts have met with strong opposition from members of the film industry. Actor Ahn Sung-ki, co-chairman of the Coalition for Cultural Diversity in Moving Images, said, "Policies regarding culture should be considered differently from other business issues". Yang Ki-hwan, a secretary-general of CDMI, stated, "The government's move signifies a cultural coup d'etat". The group plans to hold a big demonstration on Feb. 8, 2006.
In the U.S., the MPAA (Motion Picture Association of America) has been lobbying to strip protection of national film industries in South Korea and elsewhere, so that they can force-feed their multi-billion dollar monoculture to the world. In Mexico, the conclusion of NAFTA saw a more drastic slash in protectionist measures for the local film industry, resulting in a nearly 50 percent drop in domestic film output along with a drop in quality.
Recently, UNESCO adopted its Convention on the Protection and Promotion of the Diversity of Cultural Expressions. Passed by 148 countries, with only two (Israel and the U.S.) opposing, the convention, among other things authorizes countries to take appropriate measures to protect their cultural content from serious threat. In consequence, some 10 countries, including France and Italy, are taking stronger measures to protect their film industries.
In South Korea, the government has promised to compensate for the quota cut by injecting $400 million in subsidies to the local film industry over the next five years. The bulk of the subsidy will come from a 5 percent ticket levy on theater owners starting January 2007. This could raise ticket prices, and while the subsidy would help in the production of local films it would still not guarantee their distribution.
Editor / Writer
In an abrupt turn-around the South Korean government announced a day before the Lunar New Year's holiday weekend, that it would reduce Korea's screen quota system by half.
The decision, which goes into effect July 1, 2006, will cut the number of days a theater is required to show domestic films from 146 to 73 days a year. This shrinks the minimum screen time for Korean films from 40 to 20 percent, allowing U.S. movies a greater chance to dominate the box office.
The cuts were pushed through by Finance Minister Han Duck-Soo in an effort to grease and appease Washington into concluding a bilateral trade agreement. Korea's tough stance on the screen quota had remained a stumbling block to talks. Government officials remain divided on the issue. A week earlier the Culture and Tourism Ministry had asserted the current quota level would not be changed.
South Korea first introduced the screen quota system in 1966 setting the annual screen time for local films at a 33 percent minimum. In 1985 it was raised to 40 percent, however it was not until the early 90's that the guidelines were taken seriously and enforced. The local industry began to stabilize paving the way for the boom years with the success of Shiri in 1998. With more and more runaway hits and diversity in the local market, South Korean films edged past a 40 percent market share and continued to grow.
Those in favor of the cuts argue that since the market share for Korean movies has held at over 50 percent since 2004, the system has outlived its usefulness and only serves to stall FTA talks with the U.S.
However, the cuts have met with strong opposition from members of the film industry. Actor Ahn Sung-ki, co-chairman of the Coalition for Cultural Diversity in Moving Images, said, "Policies regarding culture should be considered differently from other business issues". Yang Ki-hwan, a secretary-general of CDMI, stated, "The government's move signifies a cultural coup d'etat". The group plans to hold a big demonstration on Feb. 8, 2006.
In the U.S., the MPAA (Motion Picture Association of America) has been lobbying to strip protection of national film industries in South Korea and elsewhere, so that they can force-feed their multi-billion dollar monoculture to the world. In Mexico, the conclusion of NAFTA saw a more drastic slash in protectionist measures for the local film industry, resulting in a nearly 50 percent drop in domestic film output along with a drop in quality.
Recently, UNESCO adopted its Convention on the Protection and Promotion of the Diversity of Cultural Expressions. Passed by 148 countries, with only two (Israel and the U.S.) opposing, the convention, among other things authorizes countries to take appropriate measures to protect their cultural content from serious threat. In consequence, some 10 countries, including France and Italy, are taking stronger measures to protect their film industries.
In South Korea, the government has promised to compensate for the quota cut by injecting $400 million in subsidies to the local film industry over the next five years. The bulk of the subsidy will come from a 5 percent ticket levy on theater owners starting January 2007. This could raise ticket prices, and while the subsidy would help in the production of local films it would still not guarantee their distribution.
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