Behind the Crisis in Korean Film and the Limits of K-pop's Global Success
In 2024, South Korea achieved a record $15.18 billion in arts and cultural exports, highlighting its status as a cultural powerhouse. However, the Korean cinema sector faces serious challenges, with admissions declining by 45% since 2019 to 123 million and box-office revenue dropping from $1.3 billion to $812 million. Domestic film output is projected to be about 20 releases in 2025, with potentially fewer in 2026 as the backlog of content lessens and the holdback window for releases has been shortened to just weeks. Market consolidation is underway as Lotte Cinema and Megabox plan to merge, combining a total of 1,682 screens. Meanwhile, mid-budget film productions are becoming scarce, and creative talent is increasingly gravitating toward streaming platforms, which offer steadier investment and more predictable schedules.
In the K-pop industry, physical album sales declined by 19.5% in 2024 to 92.7 million units, yet concert revenues continue to rise as agencies shift focus toward global touring. The government has announced a five-year program, backed by 51.4 trillion won, to further expand cultural exports. Major entertainment companies HYBE and SM are actively expanding overseas, and Park Jin-young has been appointed co-chair of a presidential cultural committee to oversee these initiatives. Despite these advances, critics caution that aggressive overseas expansion risks undermining domestic cultural infrastructure and authenticity. They also warn that newer hybrid and portable entertainment concepts may struggle to replicate K-pop's breakthrough success, emphasizing that real-world encounters remain crucial in maintaining global influence and cultural resonance.
