Annual revenue crosses KRW 1 trillion for the fourth consecutive year, but a 39% collapse in Korean film market share signals deeper structural challenges ahead

South Korea's total box office revenue reached KRW 1.047 trillion in 2025, a 12.4% decline from the previous year, with total admissions of 106.09 million — down 13.8% year-on-year. While the market has now sustained the KRW 1 trillion / 100 million admissions threshold for four consecutive years since 2022, the consecutive annual declines signal that recovery from pandemic lows has plateaued.

The first half of the year was particularly sluggish. Mission: Impossible – The Final Reckoning and domestic thriller Yada-ng each attracted approximately 3.3 million admissions — well below blockbuster benchmarks. The market only regained momentum from late July onwards, triggered in part by a government-subsidized ticket discount campaign, before a stronger second half steadied the annual totals.

Korean films generated KRW 419.1 billion in box office revenue in 2025 — a steep 39.4% decline from the prior year — as admissions for domestic titles fell 39.0% to 43.58 million. Korean cinema's revenue market share dropped to approximately 40%, a significant retreat from the consistent majority position the industry has held in recent years.

Most notably, 2025 marked the first year outside of the pandemic period since 2012 in which no Korean film reached the 10 million admissions milestone. My Daughter Is a Zombie topped the annual domestic chart, with Yada-ng and Eojjeolsuga Eopda among a handful of titles that performed reasonably well — but the absence of a genuine blockbuster left a structural gap that foreign productions were quick to fill.

Foreign films capitalized on the domestic vacuum in 2025, generating KRW 627.9 billion in box office revenue — a 24.7% increase from 2024 — with admissions rising 21.0% to 62.51 million. Foreign films now command approximately 60% of total box office revenue, reversing a long-standing pattern in which Korean productions held the majority share.

Animation and established global intellectual properties drove the resurgence. Zootopia 2 claimed the top spot in the overall annual box office ranking. Demon Slayer: Kimetsu no Yaiba – The Movie: Infinity Castle set a new all-time record for a Japanese film released in South Korea. F1 and Avatar: Fire and Ash also delivered sustained runs that contributed materially to foreign film revenue growth.

Amid broad market contraction, several segments demonstrated meaningful growth. Revenue from special format screenings — including IMAX, 4DX, and other premium experiences — surged 46.3% year-on-year to KRW 111 billion. Franchise properties such as Avatar: Fire and Ash and F1 proved especially effective at drawing audiences to premium formats, reinforcing a trend toward selective, experience-driven theatrical consumption.

International sales of completed Korean films reached USD 50.28 million in 2025, a 19.9% increase from USD 41.93 million in 2024. Growth was concentrated in Asia, with Japan, Taiwan, Indonesia, and Vietnam identified as key markets continuing to absorb Korean content at expanding volumes.

The independent and art-house sector held broadly steady, generating KRW 68.1 billion in total revenue. Korean independent and art-house titles specifically posted a slight year-on-year revenue gain of 1.1%, reaching KRW 24 billion with 2.64 million admissions.