screenquota on korean film market

The Impact of ScreenQuota on Korean Film Market

200900079 황선우201000038 공진원201200053 백하현201200085 최은혜

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

What is the Screen Quota?

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...

Screen Quota in Korea

• In 1966

– Established to "filter out West-

ern influences.”

– At least 146 days each year.

• FTA(2006)

– Reduced by half: 73 days.

What is the impact of

the Screen Quota?

Approach• Comparative advan-

tage• Focus• Hollywood• Movie industry– Huge capital– High Technology

Ricardian

Model

Korea better off at film Industry

Infant Industry

Holly-wood

Korea

Better QualityBetter price

1) Specialized 2) Labor pooling

3) Knowledge

Green zone for Korean film industry

The major factor in growth of Korean film in-dustry

Abolition or reduction = Damage(Exit)

Assumption

1960~1970’s

Korean Film Market

History of Screen Quota

Film law was en-

acted

Enforced Screen quota

in Korea

U.S. re-quested to abolish the

screen quota

Reduced screen quo-tas from 146 days to 73

days

1964

2006

1999

1967

The Regulatory Period(1960s)

Golden age of Korea

Cinema

Quota Sys-tem

Governmen-tal policy

Rapid in-crease of au-

dience

Urbaniza-tion

1950 1959 1965

5

111

189

The number of making movies

1943 1968

1

5.7

The number of watching movies

per head

Korea vs World :The Number of Audience in 60s

1965 1967 1968 1969 -

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Korean films

**Based on Seoul theater

Korea vs World : Market Share

1965 1967 1968 19690%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

45.5% 41.3% 48.6% 48.9%

54.50% 58.70% 51.40% 51.10%

Foreign films

Korean films

Korea in 1960s

Korea in 1960s

In the case of popular movie, you have to queue at least 3 to

4 hours!

Korean Film Market

after FTA

FTA(2006)

• 146 days → 73days

• Concern about Korean film in-

dustry

Demonstration

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

1000

3000

5000

7000

9000

11000

13000

15000

17000

Korean Films Foreign Films Total

The Number of Viewers each year

Box office indicator each year

year

Korean Film Foreign FilmTotal view-ers

(10000)

total#movies per per-son

view-ers(10000)

Market share(%)

#movies per person

view-ers(10000)

Market share(%)

#movies 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

03' 04' 05' 06' 07' 08' 09' 10' 11'0

50

100

150

200

250

80 82 87110

124113

138152

216

65 74 83

108 112 108118

140150

The number of production and released;

Korean Film

production released

03' 04' 05' 06' 07' 08' 09' 10' 11'0

100

200

300

400

500

600

271 285253

289

404360

311

383

508

175 194 215 237281 272

243286 289

The number of imported and re-leased;

Foreign Film

import released

Export of Korean Films per each year

Export amount of Korean Films were increased every yearHowever, export price per one movie decreased

02' 03' 04' 05' 06' 07' 08' 09' 10' 11'0

50

100

150

200

250

300

350

400

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

133 164 194 202 208 321 361 251 276 366

export total export(1,000USD)

Rank Movie Distributor Sales Viewers

1 웰컴 투 동막골 쇼박스 40,328,508,500 6,436,508

2 가문의 위기 ( 가문의 영광 2) 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

TOP 10 in 2005


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 영광 3 - 15,996,330,400 2,598,859

TOP 10 in 2006


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

끝에서 -- 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

TOP 10 in 2007


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

해골의 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

TOP 10 in 2008


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 7 급 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

TOP 10 in 2009


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

TOP 10 in 2010


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 성물 2 -- 34,507,600,000 4,400,270

10 리얼 스틸 -- 26,566,677,000 3,579,666

TOP 10 in 2011


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

전성시대 -- 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

TOP 10 in 2012


1 7 번방의 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

TOP 10 in 2013

Other fac-tors

Growth of Economyyear GDP per person

Household consumption (entertain-

ment)

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 develop-

ment of movie industry.

Why?

GDP

Movie Consumption

1970 1973 1980 1983 1990 1991 1992 1993 1997 1998 2000 2003 2004 2005

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

Growth of GDP

Growth of Economy

Distributor

Appearance of Big Distrib-utor

Rich Capital & Connection

with related industry

Economy of Scale

EX-CEPT

Distributor

Distributor

1,1740,000Distributor: Show-box

1,2980,000Distributor: Show-box

1,1090,000DistributorCJ Entertainment

Conclusion

ConclusionScreen Quota can be helpful in movie in-

dustry.

It ‘s not an only factor. There are some other factors.

So we should consider it more synthet-ically.

But

Index: For-eign

Screen Quota

JapanAdopted 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.

So

Japan• Japan’s Golden Age in 1950’s

Mexico’s Produc-

tion

Taiwan: Earning btw/ domestic & foreign movies

References

• Korean Film Commission (2002). The market share of Korean films. Re-

trieved November 11, 2002,from http://www.kofic.or.kr/movie/boxof-

fice.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_v11n2_238.pdf

THANK YOU

screenquota on korean film market

Data & Analytics