[Rediscovering Value②] Opening Hollywood Doors Through Joint Ventures, Overcoming the Hanhanryeong Wall with Remakes

CJ ENM Enters North American Market with Local Productions... 'Jeonsaeng', 'Lost in America', 'Jigureul Jikyeora'
NEW Remake IP Sales Bring Solid Revenue... Thriving in China Despite Export Restrictions Due to Hanhanryeong

Movie 'Miracle in Cell No. 7' Still Cut

Domestic movies and dramas have risen as global content, fueled by the popularity of 'Squid Game.' However, the industry is not yet in a position to consider expanding its scale. This is largely due to a heavy reliance on online video streaming services (OTT) and the fact that movie theaters have not yet fully normalized. 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, only 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 producers are focusing on diversifying their revenue streams and are undertaking various business ventures. They are expanding overseas sales from existing content to intellectual property (IP), collaborating with local creators to develop new revenue sources, and strengthening partnerships with global companies to secure new competitiveness. This article series highlights the foundation accelerating the globalization of Korean films in two parts.

[Rediscovering Value①] Korean Content with Elevated Status, Distribution Game on the Overseas Stage

[Image source=Yonhap News]

▲ Directly Tapping into the North American Market

CJ ENM confirmed new possibilities in the North American market with the film 'Parasite.' According to the movie information site Box Office Mojo, the North American box office revenue for this film was $53,369,749 (approximately 62.4 billion KRW). This is about twelve times the revenue of the previous highest-grossing Korean film, 'Snowpiercer' ($4,563,650, approximately 5.3 billion KRW). The global interest led to total worldwide revenue of $258,668,626 (approximately 302.2 billion KRW). Many distribution officials stated that "the Box Office Mojo figures are the minimum amount" and "actual revenue is likely much higher."

CJ ENM seemed poised to concretize its entry into the North American market riding this favorable wind. However, the spread of COVID-19 forced theaters to close, preventing the momentum from continuing. CJ ENM is shifting its strategy to local production. A representative example is 'Past Lives,' co-produced with Hollywood production and distribution company A24. The film stars Yoo Tae-oh and Greta Lee, with director Celine Song, who has worked as a writer locally, at the helm.

Movie 'Save the Green Planet' Still Cut

'K-Pop: Lost in America' (working title) is generating anticipation from pre-production. It is a global film centered on K-pop, produced by veteran producer Linda Obst and directed by Yoon Je-kyun. CJ Vice Chairman Lee Mi-kyung is directly involved as a producer. A CJ ENM official explained, "This project was planned to support domestic creators' overseas expansion and to enhance the value of K-content."

Obst is a producer known for hits such as 'Interstellar,' 'Sleepless in Seattle,' 'One Fine Day,' and 'Contact.' She said, "I have a deep affection for Korean culture, especially K-pop," and added, "I am determined to make this project a success." A CJ ENM official said, "Director Yoon is recruiting Hallyu stars and icons from Hollywood and the pop music industry," adding, "Since this is an ambitious global project, we are putting all efforts into ensuring its quality."

Director Jang Joon-hwan

Vice Chairman Lee reflected on the success of 'Parasite,' saying, "We learned that global audiences communicate and enjoy works that transcend genre within a broad theme." She was confident that works successful domestically could also succeed overseas. One such project is the Hollywood version of 'Save the Green Planet.' CJ ENM is investing and planning, with director Ari Aster, known for 'Hereditary' and 'Midsommar,' producing. The director's chair is again taken by Jang Joon-hwan.

▲ IP Sales Surpass Even the Ban on Korean Content in China

Recently, the distributor NEW has enjoyed the most success in selling remake IPs. The film 'Miracle in Cell No. 7' is being produced in Indonesia, India, and Spain, with production discussions underway in Japan and China. The already produced Turkish remake ranked 8th in the all-time box office with 5,313,012 viewers. The Philippine remake earned over 500 million pesos (approximately 11.5 billion KRW).

'When a Man Loves' Chinese Version 'Dangnan In Romance' Still Cuts

NEW's IP sales are thriving even in China, where export routes have been blocked by the ban on Korean content (Hallyu ban). Notably, the Chinese version of 'When a Man Loves' titled 'Dangnan In Lian Ai Shi,' released last June, topped the box office and earned 2.64 billion yuan (approximately 48.4 billion KRW). The highest-grossing Korean film remake in China is 'Our Summer Day.' The production company Film K directly purchased the IP of 'Your Wedding' and achieved sales exceeding 700 million yuan (approximately 127.9 billion KRW). Film K producer Park Sang-ah said, "We approached and sold the IP proactively in China, which was a great help to the company's finances during the difficult COVID-19 period."

Movie 'The Villainess' still cut

A NEW official said, "The success of remake works leads to inquiries about new IPs such as 'Hello Ghost,'" adding, "We are now expanding from simple sales to co-productions." They continued, "By securing many rights, we expect to create new revenue streams." A representative example is the film 'The Villainess,' which is being adapted into a drama. Skybound, known for producing 'The Walking Dead,' is producing, with director Jung Byung-gil serving as both director and executive producer. This is expected to invigorate Amazon TV, which is expanding its business through acquisitions such as MGM Studios. NEW previously distributed the film 'Okja' and supplied its own content, accelerating Netflix's foothold in Korea. Recently, NEW agreed to supply at least one work annually for five years to Disney Plus (+), including dramas like 'Moving' and 'Police University.'