In 2020, Korean cinema stood at the pinnacle of global recognition with the historic Oscar win for Parasite. Just five years later, the industry has entered a deep and complex decline that is widely viewed as a structural crisis rather than a temporary slump. According to the Korean Film Council’s 2024 Annual Report, domestic box office revenue fell by 5.3% from the previous year, totaling 1.1945 trillion won. The total audience count dropped to 123.13 million, a 1.6% decrease. Compared to the pre-pandemic average from 2017 to 2019, current revenue stands at just 65.3%, and audience numbers have halved. 16 multiplex cinemas closed in 2023, illustrating the shrinking exhibition infrastructure. This downturn reflects the collapse of the traditional cinematic ecosystem. Theaters are disappearing, audiences are shifting elsewhere, and content production remains stagnant. As the situation worsens, the film industry has emerged as a national policy concern. In the lead-up to the 2025 presidential election, several candidates have pledged large-scale revitalization plans, and over 300 filmmakers have publicly called for structural reform.
Expensive tickets and the rise of OTT
Among the industrial factors contributing to the crisis, rising ticket prices are particularly prominent. In 2019, a standard 2D movie ticket in Seoul cost around 10,000 won. By 2022, that figure rose to 10,285 won due to inflation and increased demand for premium formats. Weekend and prime-time screenings often exceed 20,000 won. Although discounts brought the actual 2024 average to 9,700 won, the perception of cinema as an expensive outing persists, especially among younger audiences.
OTT platforms like Netflix, Disney+, and Tving have positioned themselves as more affordable and accessible alternatives. The holdback period between theatrical release and streaming availability has shortened significantly, with some films now bypassing theaters entirely. Theaters, once the exclusive venue for new releases, now face direct competition from mobile screens. The value of cinematic exclusivity has eroded. Viewers expect rapid digital availability, reducing the urgency of theatrical viewing. As a result, the movie theater has shifted from being a routine cultural space to a special-occasion destination.
Losing the audience’s time
The film industry is also losing ground in the competition for viewer attention. In a digital environment dominated by YouTube, TikTok, game streams, and short-form content, cinema no longer commands the same cultural focus. Feature-length films, which require sustained attention, are increasingly misaligned with current consumption patterns shaped by algorithmic feeds and multi-screen behavior. This shift has diminished cinema’s status as a primary leisure activity. Movies now compete directly with mobile games, influencer content, and real-time social media engagement.
The overall entertainment landscape has also diversified beyond the theater. Pop-up events, themed cafes, immersive exhibitions, esports arenas, and indoor leisure facilities offer alternative ways to spend time. In cities like Seoul, these options are often more interactive, social, and affordable than going to the movies. As leisure becomes more fragmented and flexible, the movie theater is now just one of many possible choices.
Systemic stagnation and creative limits
Beyond industrial pressures, Korean cinema faces structural problems in its content ecosystem. When a genre succeeds, similar films tend to flood the market, reducing innovation and increasing viewer fatigue. The overproduction of crime thrillers in the early 2010s is a case in point. Investment in independent, experimental, and diverse films has also declined. According to the Korean Film Council, the screening ratio of indie and art films has dropped by over 30% in the past decade. Financial risk and lack of mainstream profitability make it difficult for these films to reach audiences. In addition, the industry remains overly dependent on a few high-profile creators. Unlike Hollywood’s studio-driven development model, Korean cinema concentrates creative labor and commercial weight in a small number of individuals. This model limits the emergence of new talent and weakens systemic resilience. In 2022, films by debut directors accounted for less than 15% of all Korean releases. Without structured support mechanisms, barriers to entry remain high, and creative diversity continues to narrow.
Barriers to expression
Legal and institutional environments also restrict creative freedom. South Korea lacks comprehensive protections for filmmakers addressing controversial or sensitive topics. The documentary In the Name of God: A Holy Betrayal revealed how legal pressure and public backlash can hinder the production and distribution of socially critical work. Ambiguities in defamation law and fear of litigation discourage content that challenges dominant narratives. As a result, filmmakers often self-censor or avoid difficult topics altogether. This environment narrows the range of cultural discourse and limits cinema’s ability to serve as a platform for reflection and critique.
Rebuilding Korean cinema from the ground up
To overcome this multifaceted crisis, the Korean film industry must embrace a long-term vision that prioritizes structural investment and systemic transformation. Short-term profitability alone cannot sustain growth in an era defined by rapidly shifting media landscapes. What is urgently needed is a durable foundation that supports independent films and nurtures emerging directors. Without accessible funding and meaningful production opportunities, new creative voices will continue to be excluded from mainstream development.
Strategic investment should also extend beyond isolated projects to encompass the broader infrastructure of the industry. A useful comparison can be made with Sony, which evolved from a hardware-focused company into a global media powerhouse by consistently investing in content, intellectual property, and cultural branding over several decades. Korea must similarly reimagine its film industry as a central pillar of soft power, an integrated, future-oriented media sector rather than a fragmented cultural commodity.
At the content level, diversification is key. The global success of Korean webtoons offers a clear path forward. With established narratives and international fanbases, webtoon-based IPs have already demonstrated their adaptability across platforms, including film, television, animation, and games. Tapping into such sources can expand genre offerings and attract new audiences, while reducing reliance on repetitive, formulaic storytelling. Legal and financial frameworks should be reformed to enable seamless adaptation and cross-media production. In doing so, Korean cinema can move beyond its current limitations and establish a dynamic ecosystem capable of both creative experimentation and global reach.
Equally essential is the transformation of film education. Current programs often emphasize technical proficiency while neglecting the cultivation of creativity, narrative intention, and critical thinking. To build a sustainable creative workforce, education must encourage interdisciplinary collaboration, support experimental work, and foster a deeper understanding of storytelling as both art and social discourse. Film schools should not simply train technicians but empower the next generation of filmmakers with the intellectual tools to navigate and shape a rapidly evolving media environment.
Korean cinema is experiencing a deep and systemic crisis, but it is not beyond recovery. Declining theater attendance, OTT competition, and internal inefficiencies have exposed the limits of outdated structures. Yet these challenges also open the door to transformation. Korean films have already proven their global potential. The next step is to build an ecosystem that can consistently produce original, world-class content, not by coincidence, but by design. By reforming infrastructure, supporting creative risk, and adapting to evolving platforms, Korean cinema can not only survive but lead in the next era of global storytelling. Cinema is not dead. It is evolving and Korea must evolve with it.