[Inside Chodong] Government and KOFIC Turn a Blind Eye to Multiplex Struggles

No Change in Support for Multiplexes Amid COVID-19
Calls Grow for Policy Shifts to Benefit Moviegoers

A movie theater in Seoul city is less crowded than usual on the 7th, one day before the government’s implementation of raising social distancing to level 2.5 in the metropolitan area. Photo by Moon Honam munonam@

On the 25th, the Korean Film Council (KOFIC) unveiled a draft for a special support project aimed at overcoming the novel coronavirus disease (COVID-19). The assistance extended to multiplexes such as CGV, Lotte Cinema, and Megabox, which have been severely affected, remains unchanged from before. It involves a 90% reduction in the film development fund levy and support of 800 million KRW for quarantine expenses. This is far from sufficient to escape the crisis of survival. Multiplexes have been excluded from government support over the past year. Despite their continuous appeals for rent-related assistance, they were ignored on the grounds of being affiliated with large corporations.

The government and KOFIC have been stingy in supporting multiplexes from the start. While KOFIC collects 1.5% of ticket revenue, most of the project funds have been poured into other areas such as production and distribution. This has not changed even this year, when multiplexes have closed directly operated stores or suspended operations. This contrasts sharply with France, where low-interest loan repayments are deferred and operating losses are covered through rent support.

France’s film fund expenditure in 2019 was 311.1 million euros (approximately 418 billion KRW), exceeding the 154.61 million euros collected. France also secures resources from broadcasting (72.3%), a much higher proportion than from cinemas (22.7%). Of the funds gathered this way, 44.7% was allocated to the film fund. This was possible thanks to a consensus that more support should be given to film than broadcasting.

France allocated 40.7% of its film fund to production. Cinemas received the second largest share at 33.6%. In addition to regularly supported purchases of screening equipment and improvements to the viewing environment (both totaling 83.3 million euros), various support projects eased the burden on cinemas. These included new theater construction and modernization (7.8 million euros), art experimental cinemas (16.5 million euros), non-competitive program operation (1.7 million euros), and additional print production (130,000 euros).

These benefits are not limited to independent theaters or art experimental cinemas. Multiplexes such as Gaumont-Path?, UGC, and CGR receive the same support.

The reason for generous support to cinemas is the belief that moviegoers come first. It reflects a strong determination to keep audiences coming to theaters amid the proliferation of video streaming (OTT) services. Thanks to this, cinemas continuously improve their facilities and hold various discount events. They respond by strengthening diversity and expanding the market through initiatives such as issuing unlimited cards for domestic films and expanding the operation of art cinemas.

Our government and KOFIC effectively leave such projects to multiplexes. Even in support for art cinemas, multiplexes are excluded while only emphasizing film diversity. Multiplexes fully recognize the necessity of art cinemas. CGV and Lotte Cinema consistently operate Art House and Arte, respectively. Megabox also screens various animations and independent films. However, it is also true that low seat occupancy rates impose operational burdens.

A multiplex official said, "We want to revitalize screenings not only of independent art films but also children’s and youth films, and short films to expand the market," but added, "There are limits to what operators can do alone, so broad support is needed." Another official expressed shock, saying, "Support for multiplexes has not changed even during the COVID-19 situation," and explained, "The film development fund is formed from 3% of the ticket price paid by moviegoers." This implies that "policy changes for the sake of audiences are most urgently required."