[Rediscovering Value①] Korean Content with Elevated Scale, Distribution Game on the Global Stage

Global Distributors' Conservative Tendencies, Barriers Lowered After Film 'Parasite'
'Squid Game' Popularity Draws Overseas Attention, New Opportunities with International Co-Productions
Showbox Releases 'Rangjong' in Thailand, CJ ENM and Lotte Succeed in Vietnam Localization

Movie 'Extreme Job' still cut

Domestic movies and dramas have risen as global content, fueled by the popularity of 'Squid Game.' The stock prices of distributors and production companies have surged daily. However, they are not yet in a position to consider expanding their business scale. This is partly because they heavily rely on online video streaming services (OTT), and movie theaters have not fully returned to normal. Last month, the number of movie theater visitors was 5,412,328, which is less than half of the 14,733,642 visitors in September 2019. The summer peak season (July-August) saw 14,886,527 visitors, about one-third of the 46,702,586 visitors in 2019.

Industry insiders agree that it will take considerable time to restore the previous atmosphere. However, they cannot just sit back and wait. Major distributors and production companies are focusing on diversifying their revenue streams and are developing various businesses. They are expanding overseas sales from existing content to intellectual property (IP), collaborating with local creators to develop new revenue sources. They are also strengthening cooperation with global OTT platforms to secure new competitiveness. The foundation for accelerating the globalization of Korean cinema is highlighted in two parts.

Movie 'Mogadishu' Still Cut

▲ The Landscape of Overseas Sales is Changing

During the last peak season, Lotte Cultureworks' 'Escape from Mogadishu' and Showbox's 'Sinkhole' were well received overseas. They were sold to 75 and 83 countries, respectively. 'Escape from Mogadishu' was screened in 42 theaters across North America. The distributor was Well Go USA, a company that frequently distributes Korean films such as 'New World,' 'The Attorney,' and 'Train to Busan.' They usually sign contracts with domestic distributors based on a minimum guarantee (a fixed minimum contract amount with profit-sharing adjustments based on box office performance) plus a running guarantee (additional payments depending on box office success).

The minimum guarantee can only increase if there is strong demand for Korean films. The amounts are still relatively low in North America. Well Go USA is one of the few distributors showing interest. Distributor A said, "There are companies like 815 Pictures that acquired 'The King's Letters' and 'New Year's Eve,' but their distribution areas are limited to places like Los Angeles where Korean communities reside, so they are not comparable to Well Go USA." He added, "Major local distributors remain conservative, mainly handling Hollywood and European films."

The solid barrier was broken by director Bong Joon-ho's 'Parasite.' Winning four Academy Awards (Best Picture, Director, Screenplay, and International Feature Film) and achieving box office success brought significant profits to the local distributor Neon. A said, "It seemed a new competitive structure was forming in the distribution market," but "unfortunately, the spread of COVID-19 interrupted this trend." He continued, "Recently, the popularity of 'Squid Game' and other content has revived interest in Korean content," and predicted, "If the works are by famous directors like Bong Joon-ho, Park Chan-wook, or Kim Jee-woon, it is possible to reshape the market."

Distributor B also said, "This year, after A24 found success with 'Minari,' there were many inquiries about similar-themed films," adding, "If a work has both artistic quality and mass appeal, it can be well received in North America."

In fact, Showbox's 'Emergency Declaration,' which was unveiled at the Cannes International Film Festival last July, reportedly sold at a relatively high price. A Showbox representative said, "With famous actors like Song Kang-ho, Lee Byung-hun, Jeon Do-yeon, and Kim Nam-gil starring, interest was high from the production stage," and added, "Although we cannot disclose the number of countries sold due to ongoing negotiations, very good results are expected."

▲ Overseas Co-Production Films are Flooding In

Showbox will release 'Langsuan' in Thailand on the 28th. It is a Korean-Thai co-production film planned by director Na Hong-jin of 'The Wailing' and directed by Banjon Pisandhanakun, known for 'Shutter' and 'Pee Mak.' It was released domestically last July, attracting 831,032 viewers. The release in Thailand was delayed because local theaters had been closed due to the spread of COVID-19. An industry insider said, "Thai actors express local sentiments well, so it is expected to perform even better than in Korea."

Director Ban Jong Phisandhanakhun

Overseas production by domestic distributors and producers is not new. Lotte Cultureworks began investing in and producing Vietnamese films in earnest starting with 'Hon Papa Ja Kong' in 2018. They have solidified their position by repeatedly breaking local box office records with films like 'Gaizia Lam Chieu 3' and 'Bloody Moon Fest.'

CJ ENM has long found success localizing domestic hits such as 'Miss Granny' and 'Sunny' in Vietnam. In February next year, they will release 'Cracked' in Thailand, a thriller starring 2PM's Nichkhun and local star Pat Chayanit. A remake of 'Extreme Job' is underway in Vietnam. A CJ ENM representative said, "Filming will begin as soon as COVID-19 restrictions ease in Vietnam, aiming for a release next year." He added, "We are also preparing to release 'Trang Ti,' directed by director Phan Cine," and "We continuously plan and develop various projects with local creators."

Movie 'Cracked' Still Cut

Local market penetration is progressing beyond Southeast Asia to Europe. The Turkish version of 'Extreme Job,' which finishes filming at the end of this month, is a representative example. A CJ ENM representative said, "We are adapting characters and settings to fit local sensibilities and producing it as a comic action film." He added, "The response from Turkish stakeholders to the original was positive," and "Comedy is popular locally, and the film's emphasis on family aligns well with the culture, so we believe it can be successful."