"Pay Ticket Price After Watching Movie"... Controversy Over Ticket Hoarding for Geon-guk War, Why? [Focus]

‘Geon-guk Jeonjaeng’ Co-production Company Suspected of Market Disruption
Audience Receives Bank Transfer Upon Movie Ticket Verification
Production Company: “Just an Event, No Problem”
Korean Film Council: “Legal Review Underway for the Matter”

The documentary film 'Geon-guk Jeonjaeng' (The Founding War), which covers the life and political career of former President Syngman Rhee, has attracted a cumulative audience of 485,427 (with box office revenue of 4.63173 billion KRW) within 14 days of its release, marking a rare success for a low-budget independent film. However, the production company has become embroiled in controversy over a so-called 'payback marketing' campaign that refunds ticket prices in cash to young audiences aged 10 to 40. The film industry criticizes this as "an unprecedented promotional method akin to ticket scalping." The production company insists it is "a sincere event aimed at educating about history."

Former Minister of Patriots and Veterans Affairs Park Min-sik (from left), former lawmaker Na Kyung-won, and director Kim Deok-young are attending the stage greeting of the movie "The Founding War" held at CGV Yeouido, Seoul on the 16th.
[Photo by Yonhap News]

What is Payback Marketing?

The joint production company Truth Forum explained the 'Youth Event' as follows: young viewers aged 10 to 40 who enter their name, birth year, phone number, and other information through the 'Geon-guk Jeonjaeng Youth Viewing Support Application' on the Truth Forum website receive a text message. By replying to that message with proof of the 'Geon-guk Jeonjaeng' movie ticket and their bank account number, the ticket price is deposited into their personal account.

Through this event, Truth Forum has refunded viewing fees to about 1,500 viewers as of the 14th. Calculating at 14,000 KRW per person (weekday ticket price), the total amount paid so far is estimated to be around 21 million KRW. Kim Eun-gu, CEO of Truth Forum, told Asia Economy in a phone interview, "We also support group viewings for church youth groups and middle and high school students. The scale of group support is larger than individual applicants. Including these, the total number of youth viewers supported through the event is estimated at about 1,500."

Industry insiders agree that this is an unusual promotional method. A marketing and publicity professional with over 20 years in the film industry told this publication, "Typically, film events are conducted by giving away movie tickets or invitations to premieres through a lottery. I have never seen an event that pays cash for ticket purchases." Another marketing company representative said, "It is unusual to pay cash instead of giving tickets. Using cash can be seen as ticket scalping, so there is a cautious atmosphere around this."

Screenshot of the post titled 'Application for Youth Viewing Support of the Korean War of Independence' on the website of Truth Forum, co-producer of 'Konkuk War'

CEO Kim explained the purpose, saying, "'Geon-guk Jeonjaeng' moved some seniors who started supporting youth movie ticket costs with pure intentions." He rebutted, "I was surprised and confused by terms like 'payback event' and 'market disruption.' It feels like framing us." He added, "This is purely a project to support young people, and it is absurd. We plan to respond appropriately."

Regarding views that this event is "no different from ticket scalping," Kim said, "'In the Name of the Country' (2022) had issues with artificially increasing audience numbers by purchasing tickets for empty early morning screenings. That was considered ticket scalping, but 'Geon-guk Jeonjaeng' is purely supporting junior viewers." He continued, "We request voluntary reviews from young viewers who watched 'Geon-guk Jeonjaeng,' and if ticket purchase records are confirmed, we support the ticket price."

Funding Without Purpose Called Movie Funding? "Pure Intentions, No Problem" Rebuttal

'Geon-guk Jeonjaeng' was released on the 1st of this month. Truth Forum is conducting fundraising on a website called 'True Fund' under the title 'Support Youth Viewing of Geon-guk Jeonjaeng' targeting conservative groups and citizens. As of the 16th, 82 people have participated, raising 47.12 million KRW. In a post, CEO Kim Eun-gu also posted a personal bank account number, saying, "For those who have difficulty with app payments, please deposit to the account below."

True Fund's 'War of Independence' Fundraising Screen

The fundraising post states, "A senior generation supporter suggested supporting one youth generation member with 20,000 KRW, including a movie ticket and some expenses, and that the budget collection and execution be conducted through True Fund, which started the 'Geon-guk Jeonjaeng' funding. We hope many young people will rediscover the roots of the Republic of Korea through Geon-guk Jeonjaeng."

A film production industry insider pointed out, "Usually, funding for low-budget independent documentary films is conducted before production or release. It is often for production costs or promotional marketing expenses after release. Participants receive rewards such as tickets or invitations to screenings based on their contribution amount. The purpose of the 'Geon-guk Jeonjaeng' funding seems ambiguous." He added, "It is a funding method I have never seen before."

During the process of gathering industry opinions on this matter, many film industry insiders questioned, "Is there no legal issue?" CEO Kim said, "I spoke with officials from the Korean Film Council and contacted the Ministry of Culture, Sports and Tourism. As of now, I understand there is no major problem." He added, "They said they would review further and let us know if any adjustments are needed. If such information is conveyed, we will reflect it as much as possible."

Regarding this, the Korean Film Council's Fair Environment Creation Center is reportedly reviewing the matter, including legal advice. The council stated, "At present, there is no situation to judge illegality," and added, "After thorough review, we will determine whether it constitutes market disruption."

Director Kim Deok-young is attending the stage greeting of the movie 'Geon-guk Jeonjaeng' held at CGV Yeouido, Seoul on the 16th.
Photo by Yonhap News

Youth Support Event Until When? "Up to 10 Million"

Truth Forum announced on the youth viewing support application post that "support may become difficult depending on the secured budget size and cinema circumstances." According to the Korean Film Council's integrated ticketing system, 'Geon-guk Jeonjaeng' was screened 2,149 times on 921 screens on the 14th, attracting 51,121 viewers. The cumulative audience as of that day is 485,427.

CEO Kim said, "At first, only 10 theaters were allocated for screenings. Seeing it increase to about 900 brings tears to my eyes." He continued, "If there is no fundraising through funding, the youth project cannot proceed, and if the movie is pulled from theaters, it cannot continue either. In that case, we plan to consider renting individual theaters. We will do everything possible to ensure young people can watch it. I hope it reaches 10 million (viewers)."