South Korea Forms Public-Private Body to Negotiate Six-Month Theatrical Holdback

On a Friday in Seoul, the Ministry of Culture, Sports and Tourism and the Korean Film Council (KOFIC) inaugurated the Public-Private Consultative Body for Improving Korean Film Distribution Structure. The 22-member panel brought together decision-makers from production, distribution, exhibition, TV-on-Demand (TVOD) and Subscription-Video-On-Demand (SVOD) sectors, including Lee Eun (Korean Film Producers Association), Lee Hwa-bae (Distributors Alliance), Shin Han-sik (Korean Cinema Industry Association) and Yoo Yong-hwa (Korea IPTV Broadcasting Association). Culture Minister Chae Hwi-yong attended the inaugural session. The committee’s mandate is to craft a voluntary theatrical holdback agreement—a six-month window before films can migrate to streaming platforms—while also addressing other distribution concerns.

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The consultative effort runs alongside a pending National Assembly bill that would legally impose the six-month holdback. Rather than await legislation, the body seeks a self-regulatory solution. Earlier in the year, the National Assembly approved a KRW 65.59 billion (US$47.5 million) emergency supplementary budget for the film sector, the largest such allocation in South Korea’s history. Concurrently, KOFIC expanded its mid-budget production support program to sustain a pipeline of commercially viable local titles.

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Beyond the holdback, participants are slated to evaluate a screen-cap proposal that would limit the number of auditoriums a single title may occupy—a measure championed by domestic filmmakers to curb multiplex concentration. The panel will incorporate feedback from the inaugural session into a draft framework and reconvene before the August target date.

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Recent box-office figures illustrate the market’s tentative recovery. Historical drama “The King’s Warden” became the highest-grossing Korean film ever, earning KRW 151.8 billion (US$110 million) domestically and helping push Q1 2026 theatrical revenue to its highest level since the pandemic’s onset. Conversely, Yeon Sang-ho’s zombie thriller “Colony” captured 71.85 % of the domestic market in its debut weekend, grossing US$9.4 million from 1,283,343 admissions, while annual box-office totals remain well below pre-pandemic norms.

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Culture Minister Chae emphasized the government’s proactive role, noting that the ministry will “lead discussions to arrive at a holdback agreement that maximizes film industry revenues while appropriately reflecting market realities and minimizing potential side effects.” The statement underscores a dual aim: protecting theatrical earnings and aligning distribution practices with current market conditions.

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Domestic filmmakers have voiced concerns about multiplex dominance, advocating the screen-cap proposal as a corrective measure. Their lobbying reflects broader industry apprehension that unrestricted auditorium allocation could marginalize smaller productions and weaken the diversity of Korean cinema.

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While Q1 2026 revenue reached a post-pandemic high, overall annual box-office performance continues to lag pre-COVID levels. The coexistence of a pending legislative holdback and a voluntary industry agreement also creates uncertainty about which framework will ultimately govern distribution.

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> “We will actively lead discussions to arrive at a holdback agreement that maximizes film industry revenues while appropriately reflecting market realities and minimizing potential side effects,” — Chae Hwi-yong, Culture Minister

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The consultative body will draft a framework based on Friday’s feedback and hold a second meeting before August, aiming to present a finalized voluntary holdback agreement for industry adoption. The outcome will influence how soon newly released Korean films transition to streaming platforms and may shape future regulatory approaches.

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