Korea ramps up film funding as it seeks to revive struggling industry

Culture, Sports and Tourism Minister Chae Hwi-young on Tuesday warned that Korea’s film industry remains in a deep post-pandemic slump and requires urgent intervention, saying the sector is now at a stage that “needs resuscitation.” Stressing that “if the film industry struggles, K-culture also struggles,” the minister said the government will inject additional funding, 65.6 billion won, so that Korea can see the production of around 40 films. Roughly 10 more productions this year could make a meaningful difference for the industry.

“The reason last year was considered a crisis (for the industry) was that only about 30 films were produced,” Chae said at a meeting with filmmakers. “At that level, it becomes difficult to sustain the industry’s operations and weakens its production capacity.”

In 2025, fewer than 30 commercial films with budgets of 3 billion won ($2 million) or more were produced, compared with 45 in 2019.

The minister noted that previous government support had largely focused on films with production budgets between 2 billion won and 10 billion won. “This time, we have newly introduced support for mid-budget films in the 10 billion to 15 billion won range,” he said, citing recent hit “The King’s Warden,” which was produced on a budget of 10.5 billion won and drew more than 16.3 million viewers at the local box office.

“We aim to support the production of around 40 films this year so that the industry can operate more smoothly.”

The package also includes 4.5 billion won for independent and art-house films, as well as 8 billion won for a new program supporting productions that use advanced visual effects.

The meeting also touched on the proposed holdback system, which would impose a mandatory waiting period before films released in theaters can move to streaming platforms. Choe said there was still no consensus on the issue and that further discussion was needed.

His remarks came after a press conference in which 581 filmmakers argued that a holdback requirement, set at six months under two bills currently pending at the National Assembly, was the wrong remedy for the industry’s problems.

The supplementary budget also includes a cinema discount coupon program aimed at boosting domestic demand. Under the plan, the government will distribute 4.5 million discount vouchers worth 6,000 won each, with up to two tickets available per person, to encourage more people to visit theaters. Officials expect the measure to help revive moviegoing while also supporting broader consumer spending.

Taken together, film-related funding in the supplementary budget totals 65.6 billion won — about 14.2 percent of the ministry’s supplementary budget and roughly half the size of its original annual film allocation. Officials described the package as an effort to minimize damage to the industry and prevent a deeper downturn.

Beyond film, the supplementary budget includes 42 billion won in support for content creators under the age of 39. Projects will be eligible if their key producer is under 39, meaning film productions could also benefit from the program.