Actor Lee Dong-hwi, known for his indispensable supporting roles in the mega-hit blockbusters “Extreme Job” (2019) and “The Roundup: Punishment” (2024), recently starred in the independent film “Will We Get Married?,” which opened on Oct. 23.
Despite a production budget of approximately 1 billion won, Lee accepted little to no payment for his work.
The film’s break-even point (BEP) of 100,000 admissions was high for an indie movie.
“I’ve been doing a lot of indie films because many projects struggle to launch due to production costs. By joining these projects, I can help attract investment, create jobs and support films that resonate with people,” Lee said during a promotional event for the film.
Lee’s perspective highlights the challenges that indie filmmakers in South Korea face.
Shrinking audiences, limited screens
Korean Film Council data shows that audiences for local indie and art films reached just 1.14 million in 2023, a mere 40 percent of the pre-pandemic 2019 figures. For indie films, a break-even point of 10,000 admissions is considered strong -- comparable to the 10 million benchmark for commercial films. However, experts argue that 10,000 admissions are insufficient to recoup production costs.
Out of the 103 indie and art films released this year as of October, only five surpassed 10,000 admissions: “Picnic,” “Kim Dae Jung Must Not Die,” “The Origin of Miracles,” “Ms. Apocalypse,” and “FAQ.” This is far below the success of foreign art films released during the same period, such as “Anatomy of a Fall" (100,000), “Dogman” (47,000), and “May December” (32,000).
“A 10,000-admissions BEP is symbolic and not financially viable. Indie production costs now range between 300 and 400 million won, requiring a BEP of at least 50,000 admissions to recoup expenses,” said Jo Gye-young, CEO of indie film marketing firm Feel & Film.
The number of screens dedicated to indie and art films has dwindled. Currently, only 62 theaters across South Korea specialize in these films, down from 72 in 2019. The closure of historic single-screen venues like Seoul Art Cinema and Daehan Cinema has exacerbated the problem.
Multiplex chains, including CGV, have also reduced their commitment to indie films, closing 14 CGV Arthouse locations in recent years. By November, only 25 remained, mostly located in or near Seoul. This limits the number of screenings per film to around 30-35 showings.
“Indie films are rarely given prime-time slots or multiple daily screenings, which reduces their exposure,” said Won Seung-hwan, director of Indiespace, South Korea’s first cinema dedicated to indie and art films.
According to Won, an indie film released in a theater will get 30-35 screening opportunities.
“It simply means that limited screenings mean less audience interaction.”
Financial struggles for indie filmmakers
Lee Jae-bin, marketing team leader at Pan Cinema, an indie and art film distributor, emphasized that the Korean Film Council (KOFIC) is crucial for the industry’s distribution and production cycle.
“Without KOFIC’s support, the system doesn’t function,” Lee said.
Pan Cinema’s Oct. 23 release “Heavy Snow,” starring Han So-hee and Han Hae-in, faced significant challenges due to the absence of KOFIC funding. The film applied for a KOFIC subsidy but was denied, forcing a rushed release.
KOFIC’s budget for indie film production fell from 11.7 billion won in 2023 to 7 billion won in 2024, and funding for animated films was eliminated. Distribution and marketing subsidies also dropped from 2.2 billion to 1.4 billion won.
“Marketing fees alone, which include posters, press conferences, online promotion and event moderation, typically cost 50-100 million won,” Lee explained. “Limited promotion means fewer viewers.”
“Heavy Snow” attracted around 4,800 viewers in its first week.
Audience preferences and streaming trends
The pandemic reshaped how people engage with movies. Professor Noh Cheol-hwan of Myungji University explained that moviegoers are now more selective, prioritizing convenience and cost.
“People don’t want to make the wrong choice, so they prefer films that are popular or highly recommended. Streaming has made it easier to watch movies at home, prompting many to question whether a trip to the theater is worth it,” Noh said.
“They prefer to save time and money much more aggressively than the generations before. They value their time and money, so they question whether it’s really worth their day to go all the way to the movie theater, buy tickets and popcorn, and spend some 50,000 won on an experience at the cinema.”
This shift has led distributors to become more selective in their film choices, focusing on titles that appeal to specific fanbases.
“In the past, we imported films with critical acclaim, but now audiences only watch what interests them. Marketing doesn’t guarantee success; people seek out the films they’re drawn to,” said Kim Si-nae, CEO of AUD, a film import and distribution company.
Kim pointed to the success of “The Notebook,” which, despite being a 2004 release, attracted 164,000 viewers when it reopened in theaters in October 2024.
“This film is seen as a romantic classic with strong word-of-mouth appeal. It shows that people are willing to pay for movies they deem worthwhile, even if they’re older,” Kim said.
Adapting and expanding
Kim, who has been in the industry for more than 20 years, believes the changes in audience behavior are not temporary. She has begun expanding her business into production, a rare move for a mid-sized distributor.
“Large studios may have the resources to endure these challenges, but smaller distributors need to adapt,” Kim said.
Kim’s company is currently working on its first production in collaboration with the directors of the 2023 documentary “Kim’s Video,” Ashley Sabin and David Redmon. She hopes to show that creativity and adaptation can open new pathways for the industry.
“My goal has always been to bring heartwarming movies to audiences. While there are more ways to watch films now, it’s important to introduce diverse kinds of stories.”
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. — Ed.
