Korean film industry takes on Hollywood: in the second of a series of articles focusing on South Korea, Sarah Hill * looks at South Korea's film industry and its right to stave off Hollywood dominance.

• Author: Hill, Sarah
• Position: South Korea In Focus - Industry Overview

Negotiations over a bilateral investment treaty (BIT) between South Korea and the United States have halted whilst South Korea debates whether to scrap its controversial screen quota policy.

For five years now, the film industry in South Korea has been riding the crest of a cinematic resurgence that has seen Korean productions dominate the domestic market. Big budget actions such as Shiri (1999) and My Wife is a Gangster (2001) have achieved extraordinary success at the box office, while art films exploring Korean cultural history such as Peppermint Candy (2000) and The Way Home (2002) have ignited the nation's enthusiasm for films reflecting its own experiences.

Simultaneously however, the Korean film industry has found itself at the centre of an international trade wrangle with the US due to what many consider to be the very reason for its recent revival. The matter concerns a screen quota policy requiring Korean cinemas to screen local films for approximately 40 per cent of the year. The quota system is complex, but roughly means that Korean films must be screened for 126 to 146 days per year.

Stalemate

In negotiations between Korea and the US over a BIT, the US has objected strongly to Korea's screen quota policy on the grounds that it imposes unfair import regulations on US films and have pressed for its abolition. This demand has been met in Korea with much resistance, particularly from film makers and actors within the film industry. The issue has also split the new government into these who favour eliminating the screen quota system and those who oppose...