Are People Still Going to the Movies?

In recent months, movie theaters in South Korea have seen a sharp decline in audience numbers. This trend underscores the mounting challenges facing the Korean film industry. One notable example is the film Bogotá, released in December 2024 and starring actor Song Joong-ki. During a post-screening Q&A session, Song was moved to tears, as he expressed sorrow that so few people had come to watch the film, despite the team's dedicated work. Director Kim Han-min, best known for the 10-million-viewer hit The Admiral: Roaring Currents, described the situation bluntly: “The Korean film industry is on the verge of collapse.” His words reflect a broader sentiment in the industry, often summarized by the phrase: “It’s either a blockbuster or a total flop.” With the exception of a few major hits like  The Outlaws series, most recent theatrical releases have failed to turn a profit. This financial reality has led many directors to postpone or cancel new projects altogether. 

As a result, a growing number of completed films — so-called “vaulted films” — never make it to theaters. By the end of 2022, more than 90 such films had been shelved. This increase in vaulted films is often largely due to internal decisions by distributors, who delay releases for various reasons, including concerns about a film’s quality or the continued decline in theater attendance. The trend has been especially pronounced since the COVID-19 pandemic. While one might assume this slump is part of a broader global downturn in cinema, film industries in other countries have shown signs of recovery since the pandemic. This raises a pressing question: Why is it that only the Korean film industry continues to face such a severe crisis?

The Korean Box Office Crisis: What’s Driving Audiences Away?

One of the most frequently cited reasons for the recent decline in movie theater attendance in South Korea is the rapid rise of OTT (over-the-top) streaming platforms. OTT refers to media services delivered directly to viewers via the internet, bypassing traditional cable or satellite providers. In Korea, popular OTT platforms include Netflix, Tving, Coupang Play, Wavve, Disney+, and Watcha. The OTT market experienced explosive growth during the COVID-19 pandemic, as in-person theater visits became increasingly difficult. Since then, companies have continued to invest heavily in content strategies to attract viewers. Netflix, for instance, has focused on developing content specifically tailored to Korean audiences, such as Squid Game, Single’s Inferno, and Physical: 100. 

To cater to increasingly diverse viewer tastes — especially among digitally native generations — OTT services have expanded beyond dramas and films to include a wide range of entertainment formats. Many platforms are also diversifying their revenue models. Moving beyond traditional subscription fees, they have introduced ad-supported plans, offered live sports broadcasts, and released exclusive content to attract more subscribers. These competitive strategies have fueled the rapid expansion of the OTT industry. As OTT platforms become more popular, consumers have grown accustomed to the convenience of streaming content from home. Many now view theater visits as unnecessary, especially when OTT offers a wide range of content at a lower cost. 

According to the Korean Film Council, “Due to the lingering effects of COVID-19, the film market had contracted as of August 2023, and more Korean film professionals have moved into OTT productions, weakening the competitiveness of theatrical releases.” Another indicator of this shift is the shortening of the ‘holdback window’ — the time between a movie’s theatrical release and its availability on streaming platforms. 

Beyond the growth of OTT, some point to rising audience expectations as a challenge. Many viewers feel that Korean films have become overly formulaic, with predictable plots and a lack of originality, which reduces the appeal of paying high ticket prices in theater. With high-quality content now available on OTT platforms and YouTube, there’s little incentive to spend money on films that feel repetitive or uninspired. 

Increasing ticket prices are also a major factor in the theater industry’s decline. Following a drop in attendance during the pandemic, multiplex chains increased ticket prices several times, placing more financial burden on moviegoers. Many now opt to stay home. In an interview with Kyunghyang Shinmun, a woman in her 20s remarked, “I hardly go to the theater anymore. One movie ticket costs more than a month’s OTT subscription. I usually just wait for the movie to come online.” 

As of 2024, a weekend 2D movie ticket at major Korean multiplexes — CGV, Lotte Cinema, and Megabox — costs 15,000 KRW (approximately  $11). With snacks included, a single visit can easily exceed 20,000 KRW ($15), leading many consumers to reconsider the value of going to the movies. 

According to the Korean Film Industry Coalition — comprising 16 organizations including the Korean Actors Union and the Korean Independent Film Association — the total number of theatergoers in South Korea as of August 25, 2024, stood at approximately 84.5 million, a 56% drop compared to 2019. The coalition blamed the three major multiplex chains for increasing ticket prices on three separate occasions between 2020 and 2022, exacerbating the industry’s slump. Even veteran actor Choi Min-sik addressed  the issue during an August 2024 interview on MBC’s Questions with Sohn Suk-hee: “Ticket prices have gone up too much. They should come down. If prices spike like that, I wouldn’t go either.” 

International price comparisons reveal that movie tickets in South Korea are relatively high. According to Numbeo, a global price database, Korea ranks 27th out of 96 countries in terms of average ticket cost. When adjusted for GDP per capita, the relative burden is even more apparent: ticket prices account for 0.033% of GDP per capita in Korea, compared to 0.016% in the U.S., 0.025% in Germany, and 0.027% in the U.K. A 2023 Korean Film Council survey found that 38.9% of respondents believed the “fair” price for a movie ticket should be between 8,000 and 10,000 KRW — significantly lower than current market rates.

Seeking Solutions: How Korea’s Film Industry Is Responding to Its Box Office Crisis

With audience turnout dwindling at theaters, many in the South Korean film industry are calling for a redefinition of what constitutes a ‘theatrical’ film. Director Kim Tae-wan advocates for what he calls ‘essential cinema’ — films that resonate with urgent, collective concerns in society. He believes that only by addressing these shared issues can films truly engage and attract modern audiences. 

In addition to rethinking the role of cinema, many believe it is time to overhaul Korea’s film production system. Industry experts point to Hollywood’s example, where script development is grounded in structured,  processes informed by engineering principles. Some have also proposed that global OTT platforms like Netflix should contribute to Korea’s film ecosystem by paying into national film development funds — a model already in place in countries such as France. Steps are already being taken to secure the future of Korean cinema. The Korean Academy of Film Arts (KAFA) has partnered with Netflix to discover and nurture emerging creators. On January 13, 2025, KAFA launched the ‘REBOOT’ program to foster innovation in planning and storytelling. The initiative targets the next generation of filmmakers. 

Cinemas are also working to reverse declining attendance. CGV, one of Korea’s major multiplex chains, has expanded its existing monthly promotion, ‘Culture Day’ — which offers 50% discounts on the last Wednesday of each month — into a broader event called ‘Culture Week.’  Meanwhile, premium cinema experiences are being introduced to draw viewers back. One example is MONOPLEX@RYSE, a boutique cinema with only 30 seats located inside a restaurant at the Ryse Hotel. The venue features cutting-edge sound and video systems, luxury seating, and a stylish, intimate interior designed to enhance the movie-watching experience. 

Despite these efforts, the slump in production has led to a notable increase in re-releases. According to a February 26, 2025 report from the Korean Film Council, a total of 228 films were re-released in Korean theaters in 2024 — more than three times the number in 2018. In an interview with Chosun Ilbo, a 26-year-old office worker commented, “Paying 15,000 won for a new release feels risky. If the movie turns out to be disappointing, it just feels like a waste of money.” Another moviegoer added, “I’d rather wait until it’s available on a streaming platform.” Yet others see value in re-releases, noting the chance to enjoy critically acclaimed films in a theatrical setting with superior sound and visuals.

A Turning Point for Korean Cinema

Korean cinema now faces an unprecedented crisis — one that demands a bold reimagining of its future. To overcome this challenge, the industry must adapt to a rapidly evolving world. As society evolves, so too do the creators, curators, and audiences of film.  This rising standard presents an opportunity: by building a more sophisticated and forward-thinking film ecosystem, Korea can once again foster a vibrant, sustainable cinematic culture.