Core Viewpoint - The South Korean film industry is facing its most significant crisis in decades, with declining box office attendance and production budgets, leading to a potential collapse of the ecosystem if urgent measures are not taken [9][11][29]. Group 1: Current State of the South Korean Film Industry - As of September 30, the film "Decision to Leave," directed by Park Chan-wook, has garnered over 1.15 million viewers in South Korea but has received poor reviews, with ratings dropping to around 6, significantly lower than his previous work [5][7]. - The overall attendance in South Korean cinemas reached only 50 million tickets by July, the lowest since 2004, indicating a severe downturn in the industry [9][11]. - Major films released during peak seasons, such as "The Black Nun" and "The Comic Dragon 2," failed to attract audiences, leading to a continued decline in key market indicators [9][11]. Group 2: Production and Investment Challenges - The production volume and investment scale in the South Korean film industry have been decreasing, with major distributors significantly cutting back on budgets [11][12]. - Since 2021, the industry has been relying on a backlog of films delayed from previous years, which is now depleting, leading to a scarcity of new content [12]. - Reports indicate that films with production budgets exceeding 3 billion KRW have sharply declined, with major distributors struggling to greenlight new projects [12]. Group 3: International Standing and Awards - South Korean films have faced humiliation on the international stage, with major directors failing to secure nominations or awards at prestigious film festivals [15][16]. - The year 2023 marked a rare instance where no South Korean films were nominated for the Cannes Film Festival, highlighting the industry's declining global reputation [16]. Group 4: Government and Industry Response - The South Korean government plans to inject $108 million into the film industry next year, an increase of 80.8% from the current budget, to stimulate the sector [23]. - Initiatives such as issuing movie vouchers and promoting international collaborations are being implemented to encourage local audiences to return to theaters [25][27]. Group 5: Future Outlook and Challenges - The industry is attempting various strategies to revitalize itself, including re-releasing classic films and introducing new marketing tactics, but the long-term effectiveness of these measures remains uncertain [29]. - The shift of talent towards streaming platforms like Netflix poses a significant challenge, as high-profile creators are increasingly drawn to the lucrative opportunities offered by OTT services [20][30].

Core Insights - The South Korean film industry is facing its most significant crisis in decades, with a notable decline in box office attendance and production quality [3][4][10] - Major films, including "Decision to Leave" and "The Handmaiden," have failed to replicate past successes, leading to a drop in audience ratings and box office performance [1][2][8] - The government is implementing emergency measures to support the film industry, including a significant budget increase for 2024 [13][14] Industry Performance - As of July 2023, cinema attendance in South Korea reached only 50 million, the lowest since 2004, excluding pandemic years [4] - The number of films produced by major distributors has decreased sharply, with fewer than 20 films released this year compared to over 40 before 2019 [6][5] - The production budget for films has also declined, with a significant drop in investments from major companies like CJ E&M and Lotte [5][6] Audience Engagement - The government has introduced initiatives such as discount coupons to encourage cinema attendance, resulting in a 1.8 times increase in daily audience numbers [14] - The strategy of re-releasing classic films has gained traction, with a record number of old films being shown again in theaters [14] International Standing - South Korean films have struggled to gain recognition at major international film festivals, with notable directors failing to secure nominations or awards [8][9] - The global film market is also experiencing a downturn, affecting South Korea alongside other major markets like the US and China [9][10] Future Outlook - The industry is attempting various strategies to revitalize itself, but the effectiveness of these measures remains uncertain [16] - There is a growing concern that the focus on high-budget productions may detract from the storytelling quality that has historically appealed to audiences [17][19] - The potential for a deeper crisis looms, with industry experts warning that the real challenges may emerge in the coming years [20]

Core Viewpoint - The U.S. government's decision to impose a 100% tariff on foreign-produced films entering the U.S. signifies an extension of trade sanctions from goods to services, which will significantly impact Hollywood and its performance in the Chinese market [1][5]. Group 1: Impact on Hollywood - The U.S. tariffs and China's response to reduce the import of American films will create substantial challenges for Hollywood, pushing it into a more difficult situation [1]. - Hollywood's revenue from the Chinese market has seen a drastic decline, with box office earnings dropping from 216 billion RMB in 2017 to only 62.73 billion RMB in 2024, representing a decrease from 38.7% to 15.1% of global box office revenue [4][10]. - The number of Hollywood films generating over 1 billion RMB in China has decreased for two consecutive years, indicating a significant downturn in market performance [4]. Group 2: Market Dynamics - The Chinese film market has grown significantly, with over 80,000 screens and a total box office of 425.02 billion RMB in 2024, making it the second-largest globally [3]. - Hollywood films once accounted for half of their global box office revenue from China, but this share has diminished as the market dynamics shift [3][10]. - The competition from streaming platforms like Netflix and YouTube has further eroded traditional cinema attendance, with only 34% of U.S. adults preferring to watch films in theaters [10]. Group 3: Financial Implications - The average production cost of Hollywood films exceeds 200 million USD, and rising tariffs on imported materials will increase production costs and strain profitability [8][9]. - The overall U.S. film box office revenue is projected to decline from approximately 86 billion USD in 2023 to around 70 billion USD by 2025, reflecting a significant contraction in the industry [10]. - The U.S. service trade surplus, which includes film exports, may be adversely affected by the restrictions on Hollywood films in China, despite the relatively small direct contribution of film revenues to the overall service trade [12][14]. Group 4: Cultural and Strategic Considerations - Hollywood's cultural influence and the portrayal of American values through its films are at risk due to the increasing isolation from international markets [14]. - The U.S. government's tariffs may lead to retaliatory measures from other countries, further complicating Hollywood's ability to access key markets [13]. - The decline in Hollywood's global market share, which has fallen from over 60% a decade ago to 51% in 2023, underscores the industry's diminishing competitive edge [10].