The government has formed a public-private council to discuss the "holdback" system, which has recently become the biggest issue in the film industry, and decided to determine whether to adopt it and at what level by August.
The Ministry of Culture, Sports and Tourism and the Korean Film Council held the first meeting of the "Public-Private Council for Improving Korea's Film Distribution Structure" on the 29th at the Korean Film Council's Planning and Development Support Center in Jung-gu, Seoul, presided over by Minister Choi Hwi-young. A total of 22 film industry officials attended the meeting, including Culture Minister Choi Hwi-young and the relevant bureau and division directors, along with Lee Eun, head of the Korean Film Producers Association; Lee Hwa-bae, head of the Distributors' Alliance; Shin Han-sik, director at the Korea Theater Industry Association; and Yoo Yong-hwa, chairman of the Korea IPTV Broadcasting Association.
In his opening remarks, Minister Choi said, "I hope we can have a meaningful dialogue that goes beyond our respective interests to realize sustainable growth, a balanced profit structure, and an ecosystem for Korean film," adding, "For this, your determination and compromise are both needed at the same time." He continued, "Just as we must make the heart beat even at the cost of side effects like a broken rib, there was much back-and-forth, but taking several urgent measures produced results," adding, "Now we must tackle the next-stage task after the heart has started beating."
The public-private council will discuss ways to normalize the profit structure of Korean film and to create a mutually beneficial ecosystem among distribution platforms such as theaters and over-the-top (OTT) services. The key issue is whether to adopt the holdback system. Holdback refers to the grace period from a film's theatrical release until it moves to other distribution channels such as OTT. Some countries implement holdback, but Korea has not yet adopted it.
Currently, regarding the adoption of holdback, production companies and distributors oppose it, while theaters are in favor. The political community is generally in favor of adoption, with Rep. Lim O-kyeong of the Democratic Party of Korea and others having proposed a bill to introduce holdback. President Lee Jae-myung also mentioned the need for holdback at his New Year's press conference in January, saying, "Why would people go to theaters when a film comes out on OTT shortly after?"
The Culture Ministry views the adoption of holdback as a key issue for revitalizing the film industry. A ministry official said, "Given the difficult situation of the Korean film industry, three months is not even fast. We plan to reach an agreement on a 'Voluntary Holdback Agreement for the Coexistence of Korean Film' by August."
