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The COVID-19 Pandemic, which began worldwide in January 2020, has plunged the global film industry into a shock beyond imagination. The report card of the Korean film industry in 2021, the second year of COVID-19, is still apprehensive, but there is also a ray of hope. According to the 2021 Korean Film Settlement Report by the Korean Film Council (KOFIC, Chairperson Park Kiyong), Korean theater sales in 2021 were KRW 584.5 billion (USD 47.9 million), up 14.5% from 2020. The total number of moviegoers was 60.53 million, up 1.7% year on year. The slight increase in the number of moviegoers compared with 2020, when the Pandemic began, seems to be a hopeful signal.

However, the pace of recovery is not fast enough yet. In 2021, the average number of theater visits per capita in Korea was 1.17, slightly higher than in 2020 but less than half compared to 4.37 in 2019. The total size of the Korean film industry in 2021 is about 40% of 2019. In 2019, the total sales of the Korean film industry were USD 2.5 billion, but in 2021, it was reduced to USD 1 billion. Non-theater sales fell 16.5% from last year to KRW 383.8 billion (USD 31.4 million), while overseas exports also fell 39.5% year on year to KRW 55.6 billion (USD 4.5 million).

Only 2 Korean Films at Box Office Top 10 in 2021 

In 2021, Spider-Man: No Way Home topped the box office in Korea, with sales of USD 4.5 million and 5.56 million audiences. The Korean film, Escape from Mogadishu, ranked second with sales of USD 2.8 million and 3.61 million viewers, while Eternals was in third place with 3.05 million entries (USD 2.6 million). Black Widow brought in 2.96 million spectators (USD 2.4 million) as it ranked in fourth place, and Fast & Furious 9 THE FAST SAGA hit the fifth place with 2.29 million audiences (USD 1.8 million). 

Only two Korean films, Escape from Mogadishu and SINKHOLE, were ranked in the box office top 10. As a result, foreign film sales increased in theater sales, while Korean film sales decreased by more than 50% compared to the previous year. This is the lowest sales since 2004. In 2021, the theater share of Korean films recorded 30.1%, which decreased by 37.9% year on year. For the first time in 11 years, the theater share of Korean films fell below 50%. Also, the audience share of Korean films reached its lowest level since 1999. 

It resulted from the fact that Hollywood blockbuster films, which had been delayed due to the Pandemic, were released consecutively since May 2021. On the other hand, it is also closely related to the delay of the release of many expected Korean films, which were supposed to be released in 2021. Two Korean films, Escape from Mogadishu and SINKHOLE, included in the top 10 box office in 2021, were supported by the Korean Theater Association, which guarantees 50% of the total production cost to the film production company. In 2021, the Korean Theater Association donated about KRW 8.8 billion to Korean film producers and distributors to encourage the release of Korean films. Despite the support, about 100 Korean films reportedly gave up their theater release in 2021, postponing their release due to the Pandemic circumstances.

As the release of Korean films was postponed, exports of Korean films also shrank significantly. In 2021, the total amount of Korean film exports combined with service exports was USD 4.8 million, which decreased by 41.8% compared to the previous year. This is because planning overseas sales became difficult as the release of Korean theaters was postponed. At the same time, the number of overseas collaboration projects and locations for filming overseas movies in Korea also decreased significantly.

In 2022, We Need Korean Films to Bring Back the Viewers to the Theater 

The Pandemic situation has greatly deteriorated the profit rate of Korean films. The estimated return on ‘commercial films’ with a net production cost of more than KRW 3 billion released in 2021 was -47.3%, while only three films exceeded the break-even point (BEP). It means screening a movie in a theater itself causes a loss now. Eventually, CGV, the largest multiplex cinema chain in Korea, announced that it would raise the ticket price from April 4, 2022. CGV said, "The accumulated deficit in the theaters has added to the management crisis. We will inevitably raise the ticket price for the survival of the film industry ecosystem." As a result, multiplexes, including CGV, have raised ticket prices three times since the Pandemic broke out in 2020. The overseas theaters have also raised ticket prices since the Pandemic. AMC Theaters, the largest movie theater chain in the United States, has been charging an additional $1 to $1.5 for ‘Tentpole’ films since March 2022.

Based on the 2021 Korean film industry settlement, concerns are still greater than hope. However, with the easing of COVID-19 quarantine measures after April 2022, there is also an expectation that spring will come to Korean theaters. Currently, what matters most is the ‘Big Korean films,’ which will bring back the viewers to the theater. Experts in the film industry said, "In the Pandemic situation, whenever we released a movie, it surely caused huge damage. So, nearly 100 Korean films have yet to be released. However, we cannot postpone the release of the movies forever,” complaining of their difficulties in the field. He also added, “If there is no movie to be screened in the theater, there will be no audience, either. It is expected that the Pandemic quarantine regulations will be eased soon, and daily life will be gradually restored. We desperately need Korean movies that will bring back the audience to the theater in time."