As the global entertainment landscape undergoes a seismic shift, South Korea’s film industry stands at a critical juncture.

For more than two decades, industry professionals have weathered countless changes -- from the growth of imported films to the debates on screen quotas and the rise of piracy. Yet, nothing compares to the disruption caused by the COVID-19 pandemic.

Heads of South Korean production companies say the challenges range from dwindling content and investment to the need for innovation and survival strategies. Drawing from multiple perspectives, The Korea Herald explores what the industry needs to survive and thrive in the current climate.

Post-pandemic: New kind of challenge

Jang Won-seok, the CEO of BA Entertainment, a label under SLL that produced the country’s biggest hit action franchise “The Roundup,” has experienced the transformative moments firsthand.

“Unlike in the past, when collective action and solidarity among industry stakeholders were the norm, the COVID-19 pandemic fundamentally altered how people engage with films,” Jang said.

Before the pandemic, visiting a movie theater was part of everyday life. Now, for most people, it has become an extraordinary event. The rise of streaming platforms has dramatically changed consumer behavior, making in-home streaming a more appealing and cost-effective alternative.

“Subscription-based services like Netflix have made it easier and cheaper for consumers to access vast libraries of content,” Jang noted. This shift poses a significant challenge for theaters and production companies that once relied on moviegoers for profitability.

Crisis of fewer releases and ‘survival mode’

According to Kim Myung-jin, CEO of Shot Cake, the production firm behind Netflix series “D.P.” and general release movie “Killing Romance,” one of the biggest crises facing the industry is the drastic reduction in new releases.

“The decrease in new films has resulted in fewer ‘success’ stories,” Kim said.

This shift has made it harder for the industry to identify role models or success cases that inspire future production, according to Kim. The prevailing sentiment is a shift from fierce competition to a collaborative spirit focused on mutual survival.

She emphasized that while competition used to drive producers and production companies to outdo one another, now there is a collective hope for any project to succeed.

“We need to create successful cases to prove that there is still potential in the theatrical release market,” Kim said.

The lack of proven hits, even among big-budget projects, has driven many investors to minimize risk by abandoning completed films and being more cautious about funding new ones. This has left creators in a cycle of uncertainty, where even projects in production may not find a release date.

Kim Jae-joong, CEO of Movie Rock, stressed that a significant concern for the industry is the looming shortage of film projects for 2025 and 2026.

This shortage stems from a combination of dwindling investment, increased uncertainty post-pandemic, and a reduction in development efforts.

“The lack of investment has severely affected planning and development,” said Kim, who has produced “Midnight Runners,” “Honey Sweet,” “Pilot” and “Hear Me: Our Summer.”

“The reduction in script development and the overall drop in theater attendance has created a vicious circle: Fewer projects being made leads to even less funding, and the industry faces an alarming deficit of new releases.”

This scarcity could leave theaters without sufficient content, impacting both audience engagement and the bottom line for production companies and distributors alike.

Value in dedication, consistency and authenticity

Amid these challenges, Jang of BA Entertainment stressed the importance of fundamental virtues -- dedication and hard work.

“Without staying true to the basics and putting in the effort, everything we’ve built can collapse quickly. The content market today is unforgiving, and only those who continuously push themselves will survive,” Jang said.

Kim of Shot Cake echoed a view, stressing the value of consistent effort and authenticity.

“(Creators with hit films) didn’t succeed by following a formulaic approach but by consistently pushing forward and embracing failure as part of the process,” Kim said.

“This dedication, coupled with a genuine passion for storytelling, has led to breakthroughs that resonate with audiences,” she added, citing examples of “12.12: The Day,” “Exhuma,” and “I, Executioner.”

“These works have demonstrated that sticking to what creators excel at and applying their best efforts often leads to impactful results. These works didn’t start as products meant to succeed in the market; they were born from creators who put their all into their craft,” Kim added.

Rethinking the movie theater experience

The shift in how audiences consume media has also forced industry professionals to rethink the moviegoing experience itself.

Kim of Movie Rock pointed out that the evolution of theaters into more immersive environments reflects a broader need for cinema to provide unique experiences.

“Cinema must become an event, something more than just a screening,” Kim emphasized.

This could involve enhanced visual and sound experiences that transport viewers, complementing a story that is both engaging and relatable. While these strategies can attract audiences, the current economic constraints make such ambitious projects difficult to realize.

Kim of Shot Cake believes that films are competing against more than just other films.

While the entertainment landscape has expanded far beyond traditional cinema, films today compete not only with other movies but also with television series, streaming platform content, and even non-screen activities such as travel and hobbies.

Kim noted that this competition requires films to offer unique value that cannot be replicated by shorter content or other forms of entertainment.

“What makes a movie worth going to a theater for?” Kim asked.

“It could be a blockbuster experience that demands the big screen, or a compelling story that keeps viewers engaged for two hours.”

“Audiences return when the experience is enjoyable,” she said, stressing that film creators need to focus on reimagining what makes the moviegoing experience special.

Call for investment for the future

All three CEOs shared the same view on one point -- the need for investment extends beyond financial support to fostering new talent.

Jang of BA Entertainment highlighted that bringing in new voices and perspectives is vital for long-term health of the industry.

“When we were starting out, we needed opportunities to learn and grow. We must ensure that the next generation has the same opportunities,” Jang said.

For this to happen, both established players and new investors must be willing to take risks and make strategic investments in emerging talent, according to Jang.

“Investment isn’t just about money -- it’s about creating an environment where creators can experiment and gain experience. This kind of commitment will be essential for sustaining the industry and ensuring it continues to thrive amid challenges.”

South Korea’s cinema industry was impacted significantly by the COVID-19 pandemic. The pandemic not only reduced theater attendance, it also transformed how distributors and production companies operate. The influx of content on streaming platforms and rising production costs have intensified these challenges. The Korea Herald discusses these issues with industry professionals in a two-part series. This is the second article. — Ed.