South Korea's newly appointed Culture, Sports and Tourism Minister Chae Hwi-young delivered a stark warning about the state of the country's entertainment industries, revealing that despite the global phenomenon of K-pop, Korean films, and other cultural exports, the reality behind the scenes is one of widespread despair and financial crisis.
Speaking at his first press conference since taking office approximately one month ago, Minister Chae described a troubling disconnect between the glamorous international image of Korean entertainment and the harsh economic realities facing industry professionals. "The reality I've seen, heard and felt while visiting various sites is so different from the glamorous image that it left me feeling perplexed and embarrassed," he told reporters on Thursday.
The minister expressed particular concern about prevailing pessimism within the industries, despite recent successes such as Netflix's original animated film "KPop Demon Hunters" gaining global popularity. "This is indeed a huge opportunity for us, but many people in the industries speak of negative views and despair that we are now at the peak and face only decline," Chae explained. He warned that getting "carried away with this festive atmosphere" could lead the country "inevitably into a quagmire in the near future."
The film industry appears to be experiencing the most severe crisis, with Minister Chae revealing alarming statistics about production levels. He reported that fewer than 20 films with production budgets exceeding 3 billion won ($2.15 million) are expected to be produced in South Korea this year, representing a dramatic decline from the typical annual output of approximately 100 such films. "Investment has stopped, and the film production scene has run out of money," the minister stated bluntly.
The crisis has reached such severe levels that the entire ecosystem supporting filmmakers is collapsing, making it impossible for industry professionals to earn a living. Minister Chae cited the particularly troubling case of renowned director Lee Chang-dong, who was forced to return a government grant after failing to secure the remaining private investment needed for a new film project. The celebrated director ultimately had to turn to global streaming giant Netflix for funding, highlighting the industry's dependence on foreign platforms.
"We need a way to get out of a situation where artists go to overseas OTT (over-the-top) services because they can't get investment here," Chae emphasized, underscoring the irony that Korean creators are increasingly relying on international companies to fund their work while domestic investment dries up.
The minister also expressed frustration over his ministry's inability to support foreign productions interested in filming in South Korea, a situation that could significantly hinder efforts to expand Korean cultural influence globally. "Despite requests for co-productions from foreign studios, the government does not have a single penny in the budget to provide support," he revealed. Chae argued that "K-culture" should not be limited to entirely homegrown productions, suggesting that international collaborations could strengthen Korea's cultural exports.
Infrastructure limitations present another significant challenge, particularly the shortage of permanent K-pop performance venues. Minister Chae noted that international fans who travel to Korea, viewing it as "the mecca of K-pop," often find themselves unable to actually attend K-pop performances due to the lack of year-round concert facilities. "There are too few year-round concert halls," he explained, highlighting a gap between Korea's reputation as the birthplace of K-pop and the actual infrastructure available to showcase this cultural phenomenon.
The minister identified increased government funding as the primary solution to address these systemic challenges facing Korean cultural industries. While next year's cultural budget is expected to increase by approximately 9.2 percent, Chae pointed out that South Korea still ranks in the lower-middle tier among Organization for Economic Cooperation and Development (OECD) countries in terms of cultural spending as a percentage of the national budget.
Despite these challenging circumstances, Minister Chae pledged to manage cultural policies carefully to ensure that Korea's current global cultural moment is not squandered. "There are many areas where government funding should serve as seed money, but I feel it has been neglected," he concluded, emphasizing his commitment to addressing these long-standing issues in the cultural sector.
