Analyzing the status of Korean film market in which screen quota has been applied and forecasting how it will be without screen quota.

1. The Impact of Screen
Quota on Korean Film
Market
200900079 황선우
201000038 공진원
201200053 백하현
201200085 최은혜

2. Contents
1. What is Screen Quota?
2. What is the Impact of Screen Quota?
3. 1960-1970 Korean Film Market
4. After FTA (2001-2011)
5. Other factors
6. Conclusion
7. Index: Foreign Example

3. What is the
Screen Quota?

4. What is Screen Quota?
• A minimum number of screening days
• To protect domestic market.
• The Cinematograph Films Act 1927 (U.K.)
• France, S.Korea, etc...

5. Screen Quota in Korea
• In 1966
– Established to "filter out Western
influences.”
– At least 146 days each year.
• FTA(2006)
– Reduced by half: 73 days.

6. What is the
impact of the
Screen Quota?

7. Approach
• Comparative advantage
• Focus
• Hollywood
• Movie industry
– Huge capital
– High Technology
Korea better off at film Industry

8. Infant Industry
Hollywood
Korea
Better Quality
Better price
1) Specialized
2) Labor pooling
3) Knowledge

9. Green zone for Korean film industry
The major factor in growth of Korean film industry
Abolition or reduction = Damage(Exit)
Assumption

10. 1960~1970’s
Korean
Film Market

11. History of Screen Quota
Film law
was
enacted
Enforced
Screen quota in
Korea
U.S.
requested to
abolish the
screen quota
Reduced
screen quotas
from 146 days
to 73 days

12. The Regulatory Period(1960s)
Golden age
of Korea
Cinema
Quota
System
Governmental
policy
Rapid increase
of audience
Urbanization

13. 5
111
189
1950 1959 1965
The number of
making movies
1
5.7
1943 1968
The number of
watching movies
per head

14. Korea vs World :
The Number of Audience in 60s
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
1965 1967 1968 1969
Korean films
Foreign films
**Based on Seoul theater

15. Korea vs World
: Market Share
45.5% 41.3% 48.6% 48.9%
54.5% 58.70% 51.40% 51.10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1965 1967 1968 1969
Foreign films
Korean films

16. Korea in 1960s

17. Korea in 1960s

18. Korean
Film Market
after FTA

19. FTA
(2006)
• 146 days → 73days
• Concern about Korean film industry

20. Demonstration

21. 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Korean Films 2271 4481 5082 6391 8019 8544 9791 7929 6354 7641 6940 8287
Foreign Films 4191 4455 5431 5556 5498 6008 5549 7938 8729 8055 7978 7686
Total 6462 8936 10513 11947 13517 14552 15340 15867 15083 15696 14918 15973
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
Korean Films Foreign Films Total
The Number of Viewers each year

22. Box office indicator each year
year
Korean Film Foreign Film
Total
viewers
(10000)
total#m
ovies
per
person
viewers
(10000)
Market
share
(%)
#movie
s per
person
viewers
(10000)
Market
share
(%)
#movie
s per
person
2000 2,271 35.1 0.41 4191 64.9 0.89 6462 1.3
2001 4,481 50.1 0.96 4455 49.9 0.94 8936 1.9
2002 5,082 48.3 1.07 5431 51.7 1.13 10513 2.2
2003 6,391 53.49 1.32 5556 46.51 1.15 11947 2.47
2004 8,019 59.33 1.65 5498 40.67 1.13 13517 2.78
2005 8,544 58.71 1.75 6008 41.29 1.23 14552 2.98
2006 9,791 63.8 2 5549 36.2 1.13 15340 3.13
2007 7,939 50 1.61 7938 50 1.61 15867 3.22
2008 6,354 42.13 1.28 8729 57.87 1.76 15083 3.04
2009 7,641 48.68 1.54 8055 51.32 1.62 15696 3.16
2010 6,940 46.52 1.37 7978 53.48 1.58 14918 2.95
2011 8,287 51.86 1.63 7686 48.14 1.52 15973 3.15

23. 80 82 87
110
124
113
138
152
216
65
74
83
108 112 108
118
140
150
0
50
100
150
200
250
03' 04' 05' 06' 07' 08' 09' 10' 11'
The number of production and
released;
Korean Film
production released

24. 271 285
253
289
404
360
311
383
508
175
194
215
237
281 272
243
286 289
0
100
200
300
400
500
600
03' 04' 05' 06' 07' 08' 09' 10' 11'
The number of imported and released;
Foreign Film
import released

25. Export of Korean Films per each year
Export amount of Korean Films were increased every year
However, export price per one movie decreased
133 164 194 202 208 321 361 251 276 366
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
80,000,000
0
50
100
150
200
250
300
350
400
02' 03' 04' 05' 06' 07' 08' 09' 10' 11'
export total export(1,000USD)

26. Rank Movie Distributor Sales Viewers
1 웰컴 투 동막골 쇼박스 40,328,508,500 6,436,508
2 가문의 위기(가문의 영광2) NEW 28,622,355,500 4,529,876
3 말아톤 쇼박스 26,284,943,000 4,196,840
4 해리포터와 불의 잔 W.B. 20,628,374,500 3,301,353
5 아일랜드 - 20,363,994,500 3,218,811
6 공공의 적 2 - 20,091,127,000 3,134,421
7 친절한 금자씨 - 20,483,051,393 3,119,682
8 태풍 - 19,372,557,600 3,035,086
9 미스터 & 미세스 스미스 - 18,900,071,500 2,963,193
10 너는 내 운명 - 17,653,752,500 2,701,230

27. Rank Movie Distributor Sales Viewers
1 괴물 쇼박스 66,715,713,300 10,917,153
2 왕의 남자 시네마서비스 61,605,851,900 9,793,917
3 타짜 롯데엔터테인먼트 36,180,800,700 5,685,441
4 미션 임파서블 3 Paramount 32,154,883,400 5,127,003
5 투사부일체 - 31,959,686,000 5,074,314
6 캐리비안의 해적 : 망자의 함 - 23,832,939,000 3,911,617
7 한반도 - 20,597,497,600 3,331,593
8 미녀는 괴로워 - 18,919,439,500 3,224,865
9 다빈치 코드 - 18,873,057,800 3,022,936
10 가문의 부활 - 가문의 영광3 - 15,996,330,400 2,598,859

28. Rank Movie Distributor Sales Viewers
1 디워 쇼박스 49,339,934,700 7,855,441
2 트랜스포머 Paramount 47,619,379,338 7,389,696
3 화려한 휴가 CJ 엔터테인먼트 44,098,449,600 6,855,300
4 스파이더맨 3 한국소니픽쳐스 29,511,658,000 4,592,309
5
캐리비안의 해적: 세상의 끝에
서
-- 29,133,447,500 4,571,229
6 해리 포터와 불사조 기사단 -- 22,899,775,300 3,691,060
7 다이 하드 4 : 죽어도 산다 - 20,622,308,900 3,176,937
8 그놈 목소리 -- 17,598,617,600 2,972,299
9 식객 -- 18,972,140,500 2,963,196
10 300 -- 18,683,698,500 2,929,561

29. Rank Movie Distributor Sales Viewers
1 좋은 놈, 나쁜 놈, 이상한 놈 쇼박스 43,747,552,000 6,684,933
2 추격자 쇼박스 33,986,959,000 5,046,096
3 쿵푸 팬더 Paramount 29,996,476,000 4,653,929
4 맘마미아! Universal Studio 29,571,255,750 4,552,475
5 과속스캔들 -- 28,506,879,500 4,361,509
6 강철중: 공공의 적 1-1 -- 28,638,460,100 4,313,101
7 아이언맨 -- 27,798,047,000 4,290,816
8
인디아나 존스 4 : 크리스탈 해
골의 왕국
-- 26,689,440,000 4,111,753
9 미이라 3:황제의 무덤 -- 26,217,311,000 4,090,885
10 다크 나이트 -- 26,878,184,500 4,060,490

30. Rank Movie Distributor Sales Viewers
1 해운대 CJ 81,025,004,000 11,324,433
2 국가대표 쇼박스 57,570,773,000 8,035,181
3 트랜스포머: 패자의 역습 Paramount 50,697,608,000 7,392,990
4 2012 Columbia Pics 48,886,883,500 5,390,201
5 아바타 -- 43,441,164,500 5,150,667
6 터미네이터 : 미래전쟁의 시작 -- 29,690,943,500 4,499,776
7 7급 공무원 -- 26,380,710,000 4,039,891
8 과속스캔들 -- 25,293,891,900 3,861,757
9 쌍화점 -- 22,493,822,400 3,296,474
10 거북이 달린다 -- 20,618,276,000 3,024,666

31. Rank Movie Distributor Sales Viewers
1 아바타 20C Fox 81,455,728,000 8,151,952
2 아저씨 CJ 47,101,332,000 6,178,248
3 인셉션 W.B. 43,394,990,000 5,827,444
4 의형제 쇼박스 40,153,729,000 5,416,812
5 아이언맨 2 -- 32,635,195,500 4,425,003
6 전우치 -- 26,345,113,000 3,611,472
7 이끼 -- 25,437,300,500 3,350,303
8 포화속으로 -- 23,831,958,600 3,330,324
9 하모니 -- 21,641,750,000 3,018,131
10 방자전 -- 22,490,024,000 2,985,483

32. Rank Movie Distributor Sales Viewers
1 트랜스포머 3 Paramount 74,840,681,500 7,784,743
2 최종병기 활 롯데 엔터테인먼트 55,827,861,500 7,470,633
3 써니 CJ 54,035,565,100 7,362,657
4 완득이 CJ 48,526,161,500 5,309,928
5 쿵푸팬더 2 ---- 44,298,708,500 5,062,720
6 미션임파서블:고스트프로토콜 -- 37,765,048,000 4,975,161
7 조선명탐정:각시투구꽃의 비밀 -- 35,841,769,500 4,786,259
8 도가니 -- 35,566,854,800 4,662,822
9 해리포터와 죽음의 성물2 -- 34,507,600,000 4,400,270
10 리얼 스틸 -- 26,566,677,000 3,579,666

33. Rank Movie Distributor Sales Viewers
1 도둑들 쇼박스 93,664,808,500 12,983,178
2 광해, 왕이 된 남자 CJ 88,899,448,769 12,319,390
3 어벤져스 W.D.P. 59,557,853,478 7,074,867
4 늑대소년 CJ 46,590,107,000 6,654,390
5 다크 나이트 라이즈 -- 47,644,838,000 6,396,528
6 바람과 함께 사라지다 -- 34,614,661,161 4,909,937
7 어메이징 스파이더맨 -- 41,163,951,235 4,853,123
8
범죄와의 전쟁: 나쁜놈들 전성
시대
-- 36,538,823,500 4,719,872
9 내 아내의 모든 것 -- 34,223,620,500 4,598,821
10 연가시 -- 32,175,400,664 4,515,833

34. Rank Movie Distributor Sales Viewers
1 7번방의 선물 NEW 91,431,914,670 12,811,206
2 설국열차 CJ 67,010,077,500 9,349,991
3 관상 쇼박스 66,005,451,500 9,134,586
4 아이언맨 3 Universal Pics 70,806,191,000 9,001,309
5 베를린 -- 52,355,568,637 7,166,290
6 은밀하게 위대하게 -- 48,700,887,413 6,959,083
7 변호인 -- 40,953,438,500 5,687,052
8 숨바꼭질 -- 39,602,987,500 5,604,104
9 더 테러 라이브 -- 39,869,755,381 5,584,146
10 감시자들 -- 39,380,162,179 5,508,017

35. Other factors

36. Growth of Economy
year GDP per person
Household
consumption
(entertainment)
1970 793 2.4
1973 1097 2.1
1980 2643 2.2
1983 3845 3.0
1990 8203 3.9
1991 9195 3.9
1992 9857 4.0
1993 10,594 4.0
1997 14,592 4.0
1998 13,644 3.4
2000 16,344 4.1
2003 19,335 4.0
2004 20,723 3.6
2005 22,098 3.7
•Assumption
GDP affects development
of movie industry.
Why?
GDP
Movie Consumption

37. 793 1,097
2,643
3,845
8,203
9,195
9,857
10,594
14,592
13,644
16,344
19,355
20,723
22,098
1970 1973 1980 1983 1990 1991 1992 1993 1997 1998 2000 2003 2004 2005
Growth of GDP
Growth of Economy

38. Distributor
Appearance of Big Distributor
Rich Capital & Connection
with related industry
Economy of Scale
EXCEP
T

39. Distributor

40. Distributor
1,1740,000
Distributor: Showbox
1,2980,000
Distributor: Showbox
1,1090,000
Distributor
CJ Entertainment

41. Conclusion

42. Conclusion
Screen Quota can be helpful in movie industry.
It ‘s not an only factor.
There are some other factors.
So we should consider it more synthetically.

43. Index: Foreign
Screen Quota

44. Japan
Adopted Screen quota at Showa age
Abolished in 1945 → Didn’t last for a long time
Golden Age in 1950’s
Not only Screen quota but also other various
factors have affected to the movie industries.

45. Japan
• Japan’s Golden Age in 1950’s

46. Mexico’s
Production
Taiwan: Earning btw/
domestic & foreign
movies

47. References
• Korean Film Commission (2002). The market share of Korean films.
Retrieved November 11, 2002,from
http://www.kofic.or.kr/movie/boxoffice.asp
• Kim, S. (2002, January 25). Ministries divided over screen quota. The Korea
Times. Retrieved November 11, 2002
• 영화진흥위원회 정책연구부, 2014년 한국영화산업 결산
• 한국영화연감
• http://www.koreascience.or.kr/search/articlepdf_ocean.jsp?url=http://ocean.
kisti.re.kr/downfile/volume/kocon/CCTHCV/2011/v11n2/CCTHCV_2011_v11
n2_238.pdf

48. THANK YOU 