South Korea's once-thriving film industry is facing an unprecedented crisis, with production numbers plummeting to historic lows and the sector becoming dangerously dependent on a single successful franchise. The crisis has become so severe that government officials are calling for emergency funding to prevent the complete collapse of the domestic film ecosystem.
Minister of Culture, Sports and Tourism Chae Hwi-young delivered a stark warning during a cabinet meeting presided over by President Lee Jae Myung on Thursday. Speaking at the presidential office in Seoul, Chae emphasized that while K-culture has become a crucial tool for raising national brand awareness and serves as a core economic engine, the industry now faces serious structural challenges that threaten its future.
"K-culture is not merely a cultural phenomenon. It is a core engine of our economy and a future source of growth," the minister stated. However, he painted a grim picture of the current situation, saying, "The K-culture production scene I have visited indicates a tremendous crisis with no breakthrough in sight. Emergency government funds are desperately required to serve as a catalyst for recovery. Money must circulate first."
The domestic film industry has been identified as the sector in most desperate need of intervention. The minister revealed that the number of commercial Korean films produced annually has crashed from approximately 60 films in previous years to just one-third of that number in 2025. This dramatic decline illustrates the severity of the crisis facing Korean cinema.
Perhaps most telling is the situation at CJ ENM, one of Korea's largest entertainment companies, which has invested in and produced over 400 films throughout its history. Despite this extensive track record, the company has released only one domestically-produced film that it invested in during 2025, highlighting the industry-wide reluctance to invest in new Korean productions.
Minister Chae diagnosed the problem as a destructive cycle that has been exacerbated by the rise of global streaming platforms. He explained that services like Netflix have made theatrical success increasingly difficult for Korean films, which has consequently led to reduced investment from both domestic and international sources. This reduction in investment has resulted in fewer films being produced, ultimately destabilizing the entire filmmaking ecosystem.
To address these challenges, the culture ministry has announced several measures designed to reduce investment risks for local production companies. The government plans to increase the loss provision rate – the amount of money set aside to cover potential losses from investments – from the current 15 percent to 20 percent. Additionally, the government will reduce its own share of profits, allowing the private sector's share of excess profits to expand from 30 percent to 40 percent.
The minister also called for broader regulatory reforms, including the relaxing of regulations for broadcasters and stronger measures to block copyrighted content in order to combat illegal piracy, which has been eating into legitimate revenue streams for film producers and distributors.
Current box office performance data starkly illustrates why urgent government action is necessary. For the first time in recent memory, the Korean film industry has failed to produce a single movie that attracted 10 million viewers in 2025. The 10 million viewer threshold has historically been regarded as the benchmark for commercial success in the Korean market, making this absence particularly significant.
The industry's dangerous over-reliance on a single successful franchise has become glaringly apparent with the absence of a new installment in "The Roundup" series this year. This action franchise had dominated the Korean box office until last year and had become the industry's most reliable source of major commercial success.
The success of "The Roundup" series has been remarkable since its breakthrough in 2022, when the original film attracted over 12.6 million moviegoers. The franchise maintained this momentum with subsequent releases, as "The Roundup: No Way Out" garnered more than 10.6 million admissions and "The Roundup: Punishment" achieved 11.5 million viewers, consistently surpassing the coveted 10 million mark annually.
This year's top-performing Korean films paint a much more modest picture of the industry's current state. "My Daughter is a Zombie" leads as the highest-grossing Korean film of 2025 with 5.62 million admissions, followed by "YADANG: The Snitch" with 3.37 million viewers. These two films represent the only Korean productions to surpass the 3 million admission mark so far this year, a stark contrast to the industry's previous performance levels.
The contrast with foreign content has been particularly striking, as Japanese animated features like "Demon Slayer: Kimetsu No Yaiba – Infinity Castle" have achieved surprising success in Korean theaters this year. Meanwhile, highly anticipated Korean blockbusters that were specifically designed to join the 10 million viewer club, such as "Omniscient Reader," have failed to attract movie fans and meet commercial expectations.
This over-dependence on a single franchise has significantly weakened the overall vitality and diversity of the local film scene, creating a situation where the industry's fortunes rise and fall based on the performance of just one series rather than a healthy ecosystem of varied successful productions.
Industry insiders are emphasizing that while government financial support is crucial, the sector must also take responsibility for diversifying its content offerings to rebuild audience interest and engagement. A Korean film industry official, speaking on condition of anonymity, stressed the importance of creative renewal alongside financial intervention. "Beyond the government's necessary financial resuscitation, the industry itself needs to make diverse attempts," the official stated, highlighting the need for a comprehensive approach that combines public support with private sector innovation and creativity to restore the Korean film industry to its former prominence.
