Concerns Arise Over Impact on Cinema Attendance and Film Industry Funding

Courtesy of Showbox

Following a government decision, South Korea plans to abolish its 3% tax on movie tickets starting next year, prompting discussions about potential effects on cinema attendance and local film industry funding.

The Ministry of Culture, Sports and Tourism announced that approximately 420 to 450 won ($0.30) will be deducted from movie tickets priced at around 15,000 won, aiming to alleviate the financial burden on moviegoers. This measure is slated to take effect from January next year, pending inclusion in a revised law. 

▲ A scene from "Exhuma" / Courtesy of Showbox

Since 2007, the government has imposed a 3% tax to support the development of the local film industry. The Ministry intends to replace this funding from the government budget.

The entertainment industry has consistently advocated for lower movie ticket prices amid declining sales, exacerbated by the COVID-19 pandemic.

According to data from the Korean Film Council, movie theater visits in South Korea totaled 125 million last year, representing 55% of pre-pandemic levels in 2019. Ticket sales for the same period reached about 65% of the 2019 figure.

However, the potential impact of discounted ticket prices on cinema attendance remains uncertain, particularly with the increasing popularity of home streaming platforms. Despite the reduction, a night out at the movies for two individuals, including popcorn and drinks, could still amount to approximately 40,000 won.

▲ A scene from 12.12: The Day / Courtesy of PLUS M ENTERTAINMENTThe Ministry stated that the discount on ticket prices is yet to be finalized, pending discussions with cinema operators.

Concerns have also been raised about the implications of eliminating the 3% tax on movie tickets, including reduced funding for the local film industry. In 2019, the tax generated approximately 54.6 billion won, but this amount is expected to significantly decrease to 29.4 billion won this year due to declining movie attendance.

The Ministry reaffirmed its commitment to supporting the local film industry through government monetary assistance, emphasizing its importance in promoting Korean content globally. Discussions with monetary authorities will continue to explore ways to bolster the local cinema business.

Sayart

Sayart, sayart2022@gmail.com