A shadow is being cast over the once-thriving Korean entertainment industry as a significant backlog of Korean dramas and films remains unreleased.
In the aftermath of global successes like "Parasite" and "Squid Game," the Korean film and drama industry finds itself in a paradoxical downturn, characterized by the pile-up of shelved films and dramas. The Korean Film Council reports approximately 130 films and dramas are in limbo, completed but without distribution in cinemas or through OTT platforms.
This has led to a notable increase in unrecovered investments and a halt in new funding. The downturn is particularly striking in the domain of low-budget and independent films, a critical pathway for emerging talent, now facing daunting obstacles due to cuts in government support.
Among the casualties of this downturn is the romance drama "Bad Memory Eraser," featuring Kim Jaejoong of TVXQ/JYJ and actress Jin Se-yeon, completed in early 2022 but still awaiting its premiere.
Despite the considerable interest it generated, especially from international markets like Japan, finding a domestic platform for release has proven difficult. This issue is not isolated, with "Bogota" starring Song Joong-ki and "The Blue House Family," featuring Cha In-pyo also completing production in 2021 but yet to find an audience.
The COVID-19 pandemic's lingering effects and the rapid rise of OTT platforms have significantly disrupted traditional distribution channels, leading to an unprecedented scenario where over a hundred projects are completed but stranded without a platform for release.
This glut has resulted in a stark increase in unrecovered investments and a freeze in new funding, particularly impacting the sector of low-budget and independent films — a critical pathway for emerging talent now facing severe challenges due to slashed government support.
The industry's struggles are also affecting production staff, with an increase in unpaid wages as projects fail to secure distribution. "Last year, the number of wage theft cases reported by drama production staff reached 192 — 2.6 times the annual average of 72," says Hong Tae-hwa, a senior official of the Korean Film Sinmungo, an actors' rights organization, highlighting the financial instability within the sector.
A notable factor contributing to the industry's challenges is the dramatic increase in actor fees, driven by the competition among global OTT platforms for top talent. This competition has led to a surge in production costs, further straining the financial resources of production companies.
As the number of new productions dwindles, actors too are feeling the pinch. The scarcity of roles has become a significant concern, with many voicing their frustrations over the lack of opportunities.
Industry insiders are pessimistic about the outlook. The current crisis threatens not only the volume of mid-tier projects but also the very foundation that supports the growth of new talent. This "paradoxical downturn," coming after a period of unparalleled global acclaim, underscores the fragile balance of success and sustainability in the Korean entertainment industry.
Cold front ahead for K-content
The surge in production costs, driven significantly by the increase in top stars' fees due to the entry of global OTT platforms into the Korean market, has further burdened production companies.
"Actor fees have skyrocketed, with leading roles in productions like 'Squid Game 2' fetching around 1 billion won per episode, a stark increase from the previous range of 100 million won to 200 million won, pushing average production costs from 500 million won to 600 million won in 2018 to around 1 billion won recently," an industry insider said.
Actors are facing challenges, too, as the number of productions decreases. Actor Lee Dong-gun lamented on a fellow actor's YouTube channel, "Previously, I could choose from two or three scripts for my next project, but these days I'm lucky if I see two in a year." Similarly, actresses Han Ye-seul and Oh Yoon-ah expressed concerns over the lack of available roles through their personal social media channels.
Industry insiders foresee a cold front ahead for K-content, extending into the foreseeable future. A production company representative, requesting anonymity, expressed concerns: "While the presence of talented creators and actors means quality work will continue to emerge, the production environment for dramas and films is worsening. If this trend continues, we risk losing mid-tier projects and undermining the foundation for nurturing new talent, potentially destabilizing the decades-long development of K-content's global standing."
This article from the Hankook Ilbo, a sister publication of The Korea Times, was assisted by generative AI and edited by The Korea Times.