The Korean film industry has been facing a long-term stagnance. However, this situation has been improved thanks to “Exhuma”.
“Please come back to the movie theater.”
That is a phrase that frequently appears at the end of films in recent years in South Korea.
After the pandemic, the Korean film industry suffered a severe downturn. The number of films in the market decreased. Many production companies, and even actors and stars, found themselves unemployed or lacking work.
Tightening budgets and the increasing popularity of online streaming services have led to the habit of going to movie theaters being forgotten. For a considerable period, box offices have been cold and lifeless due to the scarcity of blockbusters. As a result, the Korean film industry has fallen into an alarming state.
The Korean film industry crisis
In recent years, statistics show that most films released in theaters have faced cold receptions from audiences, with the majority experiencing losses. KBS revealed that the accumulated deficit of the distributor CJ CGV over the past 3 years has reached 700 billion won (approx 519 million USD).
In 2023, only 7 film projects exceeded the breakeven point out of over a hundred theatrical releases. Among them, “Spring in Seoul” and “Crime City 3” are two prominent titles that attracted a significant audience when released. Compared to 2022, there were some positive signals in the Korean film industry last year.
However, if compared to the pre-pandemic period in 2019, the total film revenue in 2023 was only 65.9%, and the total audience reached only 55.2% compared to the same period, according to a report published by the Korean Film Council (KOFIC).
This proves that the Korean film industry is recovering at an extremely slow rate.
Observers note that the film industry is experiencing a significant “polarization”. Some blockbusters can earn a lot of money, while the majority only make a very small profit, causing serious capital losses. This is not to mention the changing movie-watching behavior and tastes of the audience. Previously popular box office formulas are no longer effective.
Up to the beginning of this year, the Korean Film Council announced that the total film revenue for January was 74.7 billion won, a decrease of 39.8% compared to the same period last year. In addition, the total number of viewers also dropped by over 31%. Many investors or distribution units are rejecting new scripts due to fears of unprofitable investments unless the project has a “box office guarantee”, either in the production crew or in the cast members.
Changes in audience movie-watching behavior have also blurred the line between cinema and OTT long-format TV series. According to a survey by the Korean Film Council, a total of 34 domestic series were released from 2019 to last year. These series compete directly with theatrical films. Therefore, if a film lacks compelling elements to attract attention, audiences have no significant reason to go to the theater.
Film producers say they are stuck in the sluggish state of the Korean film industry. Currently, about 100 projects are expected to be released, but due to delays, production costs have not been recovered. This number reportedly amounts to 500 billion won (approx 370 million USD).
Only when this amount is recovered can funds be reinvested into new film projects. However, this cycle remains stuck. The cinemas struggle without audiences, and many films remained unreleased, while producers cannot embark on new projects due to lack of capital.
“Exhuma” emerges as the “savior”
After a bleak start to the year, a “box office hit” emerged, bringing promising signals to the Korean film industry. That is none other than “Exhuma”n – a mystical horror blockbuster directed by Jang Jae-hyun.
The film revolves around two young exorcists, a feng shui master and a mortician, who join forces to rescue a family facing imminent danger. Their clients are being haunted by a mysterious force threatening to take the lives of the last descendants in the lineage. To stop this, the group must unearth the tomb believed to be the source of everything. This action inadvertently releases an evil entity, endangering everyone’s lives.
“Exhuma” premiered in South Korea on February 22. Upon its release, the film made a big splash, topping the box office charts for 5 consecutive weeks, and even international blockbusters like “Dune: Part Two” couldn’t dethrone “Exhuma”.
As of now, Jang Jae-hyun’s work has earned over 73 million USD domestically and is one of the most popular films in the country after the pandemic.
According to the distributor, “Exhuma” has sold around 11 million tickets domestically, a desirable figure for any film in Asia. This number is even more impressive considering South Korea’s population of about 50 million. This means that on average, 1 in 5 Koreans went to see “Exhuma” in theaters.
Film fanatics in South Korea couldn’t hide their joy over the success of the mystical horror blockbuster, stating that “Exhuma” is a “savior” that brings positive signals for the domestic film industry. The increase in cinema audiences has led to bustling activity at the box office in recent times.
According to Slashfilm, the South Korean film industry had a slightly slow start in early 2024, with ticket sales revenue declining compared to the same period last year. However, there are many reasons to be optimistic thanks to the appearance of blockbusters, notably “Exhuma”, they stated.
Currently, “Exhuma” is the 12th highest-grossing film released in 2024 worldwide (with $75 million globally). The film continues to dominate theaters in many countries in the region and is even screened in the US and some other countries like New Zealand or the UK. At the end of its theatrical journey, the film is highly likely to surpass 100 million USD in terms of revenue, surpassing even “Madame Web” – a superhero film from Sony.
Statistics show that “Exhuma” is performing quite well in the North American market, earning $489,761 from just 67 theaters. Previously, the highest-grossing blockbuster in South Korean history, Parasite (2019), earned 53.3 USD million in the US and 258 million USD globally.
“Exhuma” is unlikely to surpass the achievement of “Parasite”. However, considering the current market conditions, it is still a promising film, a positive signal for both the South Korean film industry and the region.
Source: ZNews
