South Korea's booming entertainment industry is expressing serious concerns about President Donald Trump's renewed proposal to impose a 100% tariff on all movies and television content produced outside the United States. Industry experts warn that such a policy could significantly impact Korean content creators who have become increasingly dependent on global streaming platforms for distribution and revenue.
Kim Dae-jong, a business administration professor at Sejong University, stated that implementing a 100% tariff on foreign films and content would "highly likely violate World Trade Organization (WTO) rules, and diplomatic friction with allies is inevitable." The professor emphasized that Korean content currently reaches global audiences primarily through major streaming services like Netflix, Disney Plus, and Amazon Prime Video.
Trump reiterated his position on Monday during a joint press conference with Israeli Prime Minister Benjamin Netanyahu at the White House. The president declared that America's movie-making business has been "stolen" by other countries, comparing the situation to "stealing candy from a baby." He specifically criticized California's leadership, saying the state "has been particularly hard hit" by foreign competition in the entertainment sector.
"Our movie making business has been stolen from the United States of America, by other Countries, just like stealing 'candy from a baby.' California, with its weak and incompetent Governor, has been particularly hard hit! Therefore, in order to solve this long time, never ending problem, I will be imposing a 100% Tariff on any and all movies that are made outside of the United States," Trump announced on his social media platform.
This marks the second time Trump has publicly discussed such tariff plans. In May, he previously announced that he had directed the Commerce Department to prepare for implementing a 100% tariff on foreign movies, signaling his administration's continued focus on protecting domestic entertainment production.
However, significant questions remain about how such a policy would actually work in practice. The entertainment industry operates very differently from traditional manufacturing sectors where tariffs are commonly applied. Movies and television shows are typically distributed digitally rather than as physical imports, creating substantial challenges for implementing traditional tariff structures.
An anonymous official from a local marketing company expressed skepticism about the proposal's feasibility, noting the complex nature of modern content production. "Since specific details have not yet been released, we will have to wait and see. However, I question whether his plan is realistic. The content industry, such as films and dramas, is highly subdivided in its production structure. It's not a case of completing work in one place and then distributing the content," the official explained.
The industry expert highlighted additional complications that would arise from implementing such tariffs. "We don't know anything yet, such as whether a film shot overseas but edited in the U.S. would be considered an imported film. However, if his plan is realized, I anticipate that the domestic content industry will not be immune to a hit," the official added.
Professor Kim warned that Korean entertainment companies could face substantial financial losses if the United States strengthens regulations on foreign content. Since Korean dramas and films generate a significant portion of their revenue from overseas exports and international investments, increased trade restrictions could force companies to reduce spending and cancel new projects.
Despite these concerns, Kim suggested that the impact might be more manageable than initially feared. "It is more reasonable to view the impact as a slowdown in growth rather than a complete collapse, as Korean content has already diversified its markets to Asia, Europe and the Middle East," he explained, noting that the industry has built a global presence beyond just the American market.
To prepare for potential challenges, experts recommend that South Korea's government and entertainment industry develop comprehensive strategies to reduce dependence on the U.S. market. Kim emphasized the need to "accelerate diversification strategies by reducing reliance on the U.S. market" while also working to "boost the competitiveness of the country's domestic streaming platforms."
The professor also suggested expanding production partnerships within the United States through co-productions and joint ventures as a way to mitigate risks. He concluded by highlighting that "engaging content and a loyal global fandom are the greatest assets of the Korean content industry," suggesting that quality and audience loyalty could help Korean entertainment weather potential trade disruptions.
