[Feature Story] Stuck Between Stages: Korea’s Musical Industry Lacks a Middle Tier

   In November 2024, the Korean original musical “Maybe Happy Ending” officially opened on Broadway at the Belasco Theatre. This marked the first time in history that a Korean-produced and originally premiered musical was staged in a Broadway theater with over 1,000 seats in an open-ended run. Originally staged as a three-actor production in a small theater, it later expanded into a four-actor musical for a larger venue. Following its Broadway debut, the show continued to play to sold-out audiences into the spring of 2025 and garnered numerous prestigious accolades including the Drama Desk Awards and Tony Awards. “Maybe Happy Ending” is no longer simply a success story; it is now cited as evidence that Korean original musicals can compete on the global stage. However, the rarity of such achievements reveals a fundamental structural issue within the Korean musical industry. One key problem is the absence of a mid-sized theater infrastructure that could serve as a bridge between large-scale licensed productions and small-scale original works.

The polarization of the Korean musical industry

   The Korean musical industry is currently caught in a deeply polarized structure. On one side are large-scale productions of international licensed musicals, and on the other are original musicals staged in small theaters. The problem lies in the near absence of a middle tier that connects these extremes.

   Licensed productions overwhelmingly dominate the market. According to Interpark data, licensed musicals account for approximately 70 percent of Korea’s total musical revenue. The disparity between large and small venues is even more striking. Large theaters with over 1,000 seats hosted only 20 percent of total performances (558 out of all shows), yet they generated 315.7 billion won, or 74 percent of all ticket sales. Consequently, a small number of large productions account for nearly three-quarters of the market.

   Major venues such as Charlotte Theater, Blue Square Shinhan Card Hall, and the Grand Theater of the Sejong Center for the Performing Arts predominantly program licensed musicals like “Aladdin,” “Wicked,” and “Chicago.” This concentration is not merely a matter of preference. Licensed productions, having already proven successful abroad, offer reduced financial risk and predictable returns. In contrast, even highly refined original musicals face uncertain prospects, making theater operators more inclined to select safer licensed works.

   Meanwhile, original musicals in small theaters struggle for survival. In Seoul’s Daehangno area, about 130 small theaters operate, with approximately 65 percent offering 100 to 300 seats. In 2022, musicals in Daehangno generated 47.8 billion won, just 11.3 percent of the total musical market. These productions average 53.9 performances per show—far above the industry average of 12.2—to compensate for the limited income they can generate from each run. Extending performance duration becomes a necessity to secure financial stability. Nevertheless, profitability remains elusive. With limited performance durations, building word-of-mouth momentum is also difficult.

Mismatch between artistic vision and performance space

   Not every musical should aim for large venues. Certain productions shine only in intimate settings, while others require expansive staging to fully convey their narrative. For example, personal and emotionally resonant stories benefit from close audience. “Laundry,” a hallmark of Korean original musicals, has achieved rare longevity in Daehangno’s small theaters since its 2005 premiere. Performed by eight actors, the show addresses the lives of young adults and migrant workers, utilizing the close space to enhance emotional engagement.

   Conversely, musicals with large-scale stories or fantastical elements demand grand staging. “Swing Days: Operation A,” an original Korean production performed in 2024 at the Chungmu Art Center Grand Theater, featured 28 cast members and a 14-piece live orchestra. Set during the Japanese colonial period, the show used powerful ensemble choreography and dramatic visuals that could only be fully realized on a large stage.

   However, Korea’s current theatrical infrastructure and production ecosystem make it difficult for creators to find venues that align with each production’s artistic scale and creative direction. The lack of tiered venue classifications further complicates venue selection. Original musicals that received acclaim in small theaters often lose their essence when transferred to larger venues. Delicate emotional exchanges that resonated in small spaces can become diluted, and direction that worked in tight quarters may appear disjointed on expansive stages.

   Similarly, productions that require large ensembles and dynamic stage transitions cannot reach their potential in small theaters. However, transitioning to large venues involves considerable financial risk. A robust middle-tier infrastructure with 300 to 800 seats would allow creators to scale up gradually. Productions suited for small theaters could remain there, while more ambitious works could be tested and refined in mid-sized spaces before transitioning to major venues. Cities like London and Tokyo already support such developmental stages through mid-sized theater. In Korea, the absence of such spaces forces creators to compromise between artistic vision and financial reality. 

   A small theater is not merely a stepping stone to the grand stage. Not every production needs to aim for expansion—true impact is achieved when a work finds a venue that aligns with its artistic nature.

Financial risks and the constriction of creativity

   The most significant challenge facing Korean original musicals is excessive financial risk. Most original productions remain in small theaters not by choice but due to the inability to secure funding for large-scale shows. A major original production costs more than ten times a small one, but its commercial viability remains uncertain. Consequently, investors are reluctant to commit.

   Small theaters are inherently limited in revenue potential due to their restricted seating capacity. Limited ticket sales mean less investment, which impacts every aspect of production: cast wages, set design, costumes, sound, and lighting. With constrained budgets, production quality suffers.

   As a result, creators tend to make conservative decisions. They avoid bold or experimental ideas in favor of safer, proven formats. This, in turn, weakens the overall appeal of original musicals. Lower audience interest leads to reduced revenue, which further limits future investment. This creates a vicious cycle that suppresses innovation and reduces the vibrancy of the creative ecosystem. Ultimately, the dominance of licensed productions in large venues becomes a self-fulfilling outcome, as they present lower risk and higher potential returns. However, this structural imbalance significantly hampers the development of original Korean musicals.

Lessons from the Off-Broadway system

   One of the strengths of the American musical industry lies in its tiered performance system. In addition to Broadway, there is a clearly defined category called Off-Broadway, which typically includes venues with 100 to 499 seats. These spaces function as platforms for experimental and original works. Successful shows may then advance to Broadway.

   Many award-winning productions have followed this path. “Hamilton” originated at the Public Theater Off-Broadway before transferring to Broadway. “Dear Evan Hansen” premiered at Arena Stage, moved to Off-Broadway, and eventually debuted on Broadway. This system provides a safety net for creative experimentation and allows for gradual development.

   Importantly, movement between tiers is flexible. Shows may transition from Broadway to Off-Broadway due to financial or audience-related considerations, thereby extending their lifespan. This flexibility enables creators to adapt performances to suit circumstances, enhancing sustainability.

   In contrast, Korea lacks both the infrastructure and clear roles for each venue tier. Original productions are often confined to small spaces due to the high barriers to large-scale production. Addressing this issue requires building more mid-sized theaters and establishing systems that allow flexible venue selection based on the characteristics of each work. Through collaboration between government and private entities, Korea must expand infrastructure and create an environment where productions can scale up or down in response to creative and financial conditions.

   “Maybe Happy Ending” may have taken the grand stage, but its path remains a solitary trail rather than a paved road. Its success, while historic, highlights the fault lines beneath Korea’s musical theater landscape—an industry still lacking the scaffolding to support creative ascent. Without venues that nurture growth, or systems that encourage risk, most original works will remain confined to the margins. The challenge now is to build a structure that allows stories to rise—not by chance, but by design. Only then will Korean musicals stop waiting for a stage—and start claiming one.