[K Movie Golden Age] ① Director Lee Jeong-ha Met at Cannes: "Korean Films Are Upward Trending Blue Chips"

Meeting Lee Jeong-ha, Head of Department, at the 75th Cannes Film Festival
Film Market Bustles Again After 3 Years
Contents Panda Showcases 'The Witch 2', 'Smuggling', 'Gangnam Zombie' and More
"Increase in Global Co-investment and Production Meetings"
"Broad Attention to Korean Films, Interest from North America and Europe"
"Expansion Beyond Theaters to Multiple Platforms and Price Increase"

Cannes Film Festival Film Market. The poster of 'The Witch: Part 2' is displayed at the Contents Panda booth / Cannes (France) Photo by Lee Isul

[Asia Economy Reporter Lee Isul] What a sight to behold after such a long time. The Cannes Film Festival's film market, 'March? du Film,' is back. March? du Film is considered one of the world's top three film festivals, but it is actually the largest film market globally, held alongside the prestigious Cannes Film Festival. The market opens a few days before the festival begins and remains bustling with active deals through the first weekend. Due to the pandemic, the market was held online for the past two years. When covering the 74th Cannes Film Festival last July, the sales booths were deserted. The quiet market felt strangely like a scene from a zombie apocalypse movie.

This year was different. At the 75th Cannes Film Festival's March? du Film, which opened on the 17th of last month, over 10,000 film professionals and buyers gathered, restoring the pre-pandemic atmosphere. Upon entering the center, the familiar bustling chatter was immediately noticeable. Everyone carrying their film packages gathered, busily making deals. Many Korean investment and distribution companies secured prime spots and were happily holding their ground in the same places this year.

Danny Lee, Head of Content Panda, is a trusted and popular expert at the Cannes Film Festival's film market. During the 72nd Cannes coverage in 2019, as soon as he spoke a word, voices seeking him could be heard. In fact, reporters can sometimes be unwelcome guests at the film market. While it is a regular coverage spot for those curious about overseas reactions to K-movies, carrying notebooks, they can unintentionally become a nuisance. In this silent battlefield where enormous deals are made in mere minutes, I was curious about how our films were selling on the front lines of the market. With the rising status of K-content, I wanted to feel the market's temperature firsthand. Before heading to Cannes, I arranged an interview with Head Lee through Media Group NEW.

On the 23rd of last month, at the Content Panda booth in the March? du Film Village in Cannes, France, Head Lee told Asia Economy, "Since the pandemic, K-content has received good evaluations, reaching its peak this year."

Meeting Head Lee was a very meaningful coverage experience. While it was significant to cover director Park Chan-wook, who won the Best Director award at the closing ceremony, and actor Song Kang-ho, who received the first Best Actor award domestically, it also allowed me to gauge the changed status of K-movies and K-content and their achievements in overseas markets on the front lines.

Head Lee said, "In 2016, when the film 'Train to Busan' was invited to the Midnight Screening and major works like 'The Wailing' and 'The Handmaiden' were screened at Cannes, the atmosphere for Korean films began to rise. From then on, trust in the Korea film brand was built."

Content Panda has gained a reputation as a genre specialist at the Cannes Film Market. Following 'Train to Busan,' the 2017 film 'The Villainess' was regularly invited to the Midnight section, raising trust in genre films. Some buyers even express purchase intentions just by looking at the posters decorating the market booth walls. This year, 'The Witch: Part 2' received intense attention. The film was highly anticipated as a slick action piece at this year's market and was sold to all major countries. Head Lee said, "Korean films are good at making genre films, and the formula 'Midnight equals K-movie' has been established, so there is a positive atmosphere toward any content."

Jung-ha Lee, Head of Department / Photo by Contents Panda (NEW)

In the summer of 2022, transitioning from pandemic to endemic, some countries still have not fully reopened theaters. Many officials I met at this year's film market worried that content transaction amounts might decline, but the actual amounts received were reported to have increased. I had an open and candid conversation with Head Lee about the changed status and achievements of K-movies in the global market, as well as prospects for the content market including theaters and Over-The-Top (OTT) streaming services.

Below is a Q&A with Head Danny Lee.

(Asia Economy) What is the overseas buyers' reaction to K-movies and K-content in this year's market? Has trust increased? Do you feel that way for sure?

(Head Danny Lee) I feel that the awareness and trust in the K-content brand continue to rise. Starting with 'Train to Busan' in 2016, followed by 'The Villainess' the next year, and then 'Parasite' winning the Palme d'Or at Cannes, it reached its peak. Then it also won an Oscar. 'Minari' is not a Korean film but stands out as content made in the mainstream U.S. market. Gradually, K-content is becoming more normalized. Actress Youn Yuh-jung won the Oscar for Best Supporting Actress, and then the 'Squid Game' craze made it so that just hearing the song is recognized worldwide. Actor Lee Jung-jae came to Cannes this year, and people seemed amazed. Now, it feels like all Korean films are widely noticed.

=Over the past two years, the pandemic caused significant changes in the content market. With consumption shifting, the focus moved to OTT. The big question is whether audiences will return to theaters in the endemic era, and if so, whether it will be temporary or if theaters will truly revive.

"I definitely think the shift to OTT will serve as a turning point for cinema to return, starting with the Cannes Film Festival. Before the pandemic, theaters were like the big brother in legacy media, and new media was too small to compete. Many distributors had to accept the change and couldn't rely solely on theaters for revenue. Production and distribution companies had to compromise and go along with OTT. As a result, many people moved to OTT."

=I felt that this year's Cannes Film Festival was curious about this aspect. The poster seemed to pay homage to the ending of the famous film 'The Truman Show,' asking what endemic cinema might look like. We don't know how Jim Carrey's character lived after walking out the door or what scenes he faced. It felt like an invitation to look forward to what endemic cinema might be through the festival. Previously, sales were like 'peddling,' but now they are shifting to an 'e-commerce' style.

"Now is the era when intellectual property (IP) is crucial. It depends on who owns the content. OTT gained significantly in content consumption after the pandemic, and producers also benefited. We produce works and hold distribution rights as content owners. Previously, rights were easily shared, but now, if you own them, you realize they can generate money. I think the power game will shift back to the owners. Whether theaters or OTT, it's now an era where they weigh which yields more profit. In that sense, I want to say greater opportunities have opened."

Cannes (France) = Photo by Lee Isul

=There is a saying that the film industry survives only if theaters revive. Domestically, 'The Outlaws 2' is doing well, but is this temporary? Could audiences shift back to OTT or other viewing methods later? What is your view?

"It's somewhat of a hybrid concept now. In some regions, theaters are still not healthy enough to open films for theatrical release. In such countries, sales through OTT or other channels help cover amounts. It has become a sales structure where compromise is necessary. The market now looks beyond the concept of 'theatrical films' to other platforms."

=As you mentioned, K-content began to stand out on the global stage around 2016. Since then, Korean films have almost become fixtures in the Cannes Midnight Screening. Directors like Kim Jee-woon, invited to the 58th Cannes Midnight Screening with 'A Bittersweet Life' (2005), helped build trust steadily.

"I think Cannes now expects a K-movie in the Midnight Screening every year. We pride ourselves on having top efficiency relative to investment worldwide. Hollywood acknowledges this too. Overseas professionals are often surprised when they learn the pure production cost of 'Train to Busan.' Korea seems to produce good content in large quantities. Now that OTT's value has risen in the power game, I expect our dramas and films to work under better conditions and environments. I believe things will continue to improve."

=Do you see the future of K-content as continuously bright? When covering 'Parasite's Palme d'Or win, I wondered if it was a temporary glory, but then it won Oscars. Good results are expected this year too, but some worry that Korean films' momentum might wane.

"Having reached the peak, that could happen. But ultimately, I think it will be an upward trend. Even if there is a temporary downturn, it will rise again. Looking at the long-term graph, Korean films will continue to trend upward."

=So Korean films are a 'blue chip'?

"Exactly. This time, I had many meetings, including sales meetings and various other types. I felt this especially during global project meetings related to co-productions and investments in Korean films."

=Do you think these diverse meetings were particularly prominent this year?

"Interest has definitely increased. Overseas, there is a strong interest in the tone of Korean films. Since they don't know much about K-content or K-movies, they explore how to participate in production as co-producers or partial investors. Additional related meetings are ongoing."

=Will this global production style become a new norm rather than a temporary trend? Europe already has multinational productions, but Asia has faced difficulties due to cultural differences.

"I think opportunities in various forms will gradually increase. It's no longer just about sales and distribution participation but about becoming owners by investing shares early in the production stage. This is how K-movies are being approached now. So, I definitely feel it's moving in a better direction in diverse ways."

Lee Jeong-ha, Head of Department / Photo by Contents Panda (NEW)

=What films did you showcase at this year's Cannes market besides 'The Witch: Part 2'?

"'The Witch: Part 2' received the most attention. We also presented director Ryu Seung-wan's new film 'Smugglers,' 'Gentleman' starring Ju Ji-hoon (directed by Kim Kyung-won), 'Limit' starring Lee Jung-hyun (directed by Lee Seung-joon), 'Gangnam Zombie' starring Ji Il-joo and Ji Yeon (directed by Lee Soo-sung), director Jang Hang-jun's new work, and 'Ghost Station Oksoo' (directed by Jung Yong-gi). I was a bit surprised, but perhaps because we distributed 'Train to Busan,' even ghost horror films receive positive evaluations. I expect many pre-sales at good prices. We should be able to officially discuss sales results before release."

=Since 'Squid Game,' bidding has become more common. Do you feel this during the process?

"Definitely, I feel it. Bidding happens much more often. For 'The Witch: Part 2,' we held two buyer screenings at the market. There was fierce bidding between buyers wanting to purchase, and after the official market screening, there was even some anxiety that prices might rise further. Ultimately, I can say it was sold to all major countries. We definitely felt the atmosphere rise."

=Have sales amounts increased significantly?

"It is 'case by case.' There is a clear difference before and after the pandemic, but genre films seem to fetch higher prices. Interest is overwhelmingly high in the Asian market. Korean films are like second-tier films. Just as we don't watch European films much, Europeans feel the same. However, inquiries came in this year, and prices are trending upward, which is encouraging. I felt strong interest from Western markets like North America and Europe this year."