Sector report: Korea
Asian alliance
May 24, 2005
When Kim Dong-ju began working in the South Korean film industry 15 years ago, his job did not require a passport. What could a junior executive from a nascent production sector in a small Asian market have to offer the global movie business?
These days, though, Kim spends four months a year abroad.
"Korea was an importing nation, not an exporter," says the founder and CEO of Seoul-based production and distribution company Show East, set up two years ago to focus on pan-Asian collaborations. "(But) Show East means 'Show business in the East' -- we need to think more and more about going pan-Asian if we hope to survive."
Not only are South Korean companies like Show East exporting films throughout the region, but also they are collaborating closely with their Asian counterparts to co-produce and share talent. Show East is joining China Film and the United States' Moonstone Entertainment to co-produce Chen Kaige's actioner "The Promise," touted as "'The Lord of the Rings' of the East." The $30 million production brings together several top names from throughout Asia: In addition to Chen, the movie features an international cast including China's Cecilia Cheung, Japan's Hiroyuki Sanada and South Korea's Jang Dong-gun.
After being approached by Moonstone about getting a Korean actor involved in the project, Kim suggested Jang, one of Asia's hottest Korean stars. In addition to convincing Jang to participate, Kim signed on as a producer and invested in the film. "We're just a beginner," Kim says. "But we want to learn how to make movies like 'Hero' or 'House of Flying Daggers.'"
Show East is hardly alone. While there has been cooperation between South Korea and its neighbors for decades (China's Shaw brothers used South Korea for locations during the 1960s), the trend enjoys more momentum than ever before.
With the average Korean film budget rising to $4.5 million -- plus potentially millions more in prints-and-advertising costs -- and the local home video market on a huge decline, co-productions are the next logical step for an industry that has every intention of sustaining its success of the past few years.
In 1997, the entire Korean film industry's exports totaled less than $500,000; by last year, that figure had rocketed to nearly $60 million, according to the Korean Film Council.
South Korea's move outward arguably began in 2001 with Hur Jin-ho's "One Fine Spring Day," which had its $1.5 million budget co-financed by South Korea's Sidus Pictures, Hong Kong's Applause Pictures and Japan's Shochiku Films.
International deals then took a big leap forward in 2002 with the success of the Jeon Ji-hyun starrer "My Sassy Girl" in Hong Kong and South Asia. Bill Kong, head of Hong Kong's Edko Films (which went on to co-produce the 2004 Jeon starrer "Windstruck"), believes that the Korean film scene is vital enough to compete globally.
"What drew me to Korean production is their competitiveness in terms of their production cost: You can make a very decent film within a certain budget which is very competitive," Kong says. "They have great filmmakers about to burst onto the world."
Still, while Korean films have been booming for nearly six years, exploding budgets and intense competition have made profitability increasingly elusive. Without exports, the Korean movie industry would have lost more than $20 million in 2004.
"You have to look at Asia for survival -- you need the bigger market," says Esther Koo, vp at Hong Kong's Applause Pictures, which has, since its inception in 2000, focused on building up the film business throughout the region. "Look at what happened to Hong Kong a few years ago; the same thing could happen to Korea. You can't compete against Hollywood without bigger markets."
It's a lesson Korean filmmakers appear to be learning quickly.
The latest project for South Korea's iFilm, "Daisy," reflects the sector's new-found emphasis on productions with more international appeal. The film was written by South Korea's Kwak Jae-young, writer-director of "My Sassy Girl" and "Windstruck," and will be directed by Hong Kong's Andrew Lau. For good measure, the story of a cop and a professional killer vying for the love of the same woman will be set in the Netherlands.
"Since 'Daisy' is a project that has to be shot abroad and that has to have a certain style to it, we thought that maybe people who have had more experience in shooting abroad and who have their own style might be a good fit," iFilm CEO Jung Hoon-tack says. "That's why we turned to a Hong Kong director."
CJ Entertainment, Korea's largest distribution and exhibition company, also has been aggressive in seeking more involvement throughout Asia, particularly China. CJ hosted a China Night at last year's Pusan International Film Festival that featured Zhao Shi, China's vice minister of state administration of radio, film and TV, and CJ CEO Dong-ho Park. CJ also signed a memorandum of understanding with the China Performing Arts Agency to look for co-productions and investments in movies and theater.
One of South Korea's biggest production houses, Sidus is interested in targeting Japan because founder and CEO Tcha Sungjai believes that market is too lucrative to be ignored. His recent release "Rikidozan," a biopic about the famous Japanese professional wrestler, failed at the Korean boxoffice (it is set to open in Japan in the summer), but Tcha says it was worth it because of the connections developed. "The profits are just too good in Japan," Tcha says. "If a Japanese company wants to make a co-production, we'd be the first ones to form a partnership."
Sidus has teamed with Japan's CineQuanon to make "Heaven's Soldiers," an $8 million drama about North and South Korean soldiers caught in a time warp and sent back to the Imjin War between Korea and Japan in 1592.
Elsewhere, Show East's "April Snow," the latest film from Hur Jin-ho, is rumored to have been presold to UIP Japan for a staggering $7 million-$8 million (neither UIP nor Show East would confirm the price). "Snow" stars Bae Yong-joon, who starred in 2002's "Winter Sonata" and is the hottest Korean celebrity in Japan.
Show East is not neglecting the rest of Asia, either: When "Snow" rolls out in September, it will receive a near-simultaneous release in South Korea, Japan, Hong Kong, Indonesia, Taiwan, Thailand and China. Show East claims that it will be the biggest-ever simultaneous release for an Asian film.
"UIP Japan asked to open the film at the same time; otherwise, Japanese tourists would just come to Korea to see the film," Kim says. "In Japan, the ticket prices are much higher than Korea -- $18 vs. $7 in Korea."
Such deals are not limited to big-budget extravaganzas, nor are they limited to Asia: Several art house producers also are targeting European and American markets. A handful of auteurs who rely heavily on their international popularity to fund their films are benefiting from the West's acceptance of Korean art house fare.
Kim Ki-duk's 2003 release "Spring, Summer, Fall, Winter ... and Spring" made less than $300,000 in Korea but became the most successful Korean film of all time at the U.S. boxoffice, where it took in $2.3 million. Kim's latest, "The Bow" -- which screened in the Un Certain Regard section at this year's Festival de Cannes -- has been presold to 13 territories for $700,000.
French film company MK2 has invested several hundred thousand euros in two of art house director Hong Sang-soo's recent films: "Woman Is the Future of Man" and "A Tale of the Cinema." "Woman" producer Hanna Lee says that while international sales are not yet sufficient enough to allow Korean directors to make films without any local support, the long-term effects of promoting Korean cinema abroad are invaluable.
"(International sales) help broaden the market" she says. "Distribution (in Korea) has changed so much over the past five to six years. There are more screens, and so much more is going into promotion -- especially with the multiplexes -- that it has all made Korean films more commercialized."
Local art house production company LJ Film recently announced two films with an eye toward English-speaking markets: "Love Talk," a coming-of-age drama about young Korean-Americans in Los Angeles, is the next film from Lee Yoon-ki, who won much attention last year for his debut, "This Charming Girl"; and "Love House," the feature debut of Kim Pan-soo that focuses on Korean-Americans working in Los Angeles' online pornography industry.
With its high profile at Cannes this year, including "Bow" and the Directors' Fortnight entries "Crying Fist" and "The President's Last Bang," South Korea's thriving film sector appears on the verge of achieving success that would have seemed impossible only five years ago.
"When I started 15 years ago, a film normally got 14 or 15 prints," Show East's Kim says. "Now, though, top films get 300 -- even over 400. What's going to happen in the next 10 years, nobody knows -- but we need people who think internationally."
These days, though, Kim spends four months a year abroad.
"Korea was an importing nation, not an exporter," says the founder and CEO of Seoul-based production and distribution company Show East, set up two years ago to focus on pan-Asian collaborations. "(But) Show East means 'Show business in the East' -- we need to think more and more about going pan-Asian if we hope to survive."
Not only are South Korean companies like Show East exporting films throughout the region, but also they are collaborating closely with their Asian counterparts to co-produce and share talent. Show East is joining China Film and the United States' Moonstone Entertainment to co-produce Chen Kaige's actioner "The Promise," touted as "'The Lord of the Rings' of the East." The $30 million production brings together several top names from throughout Asia: In addition to Chen, the movie features an international cast including China's Cecilia Cheung, Japan's Hiroyuki Sanada and South Korea's Jang Dong-gun.
After being approached by Moonstone about getting a Korean actor involved in the project, Kim suggested Jang, one of Asia's hottest Korean stars. In addition to convincing Jang to participate, Kim signed on as a producer and invested in the film. "We're just a beginner," Kim says. "But we want to learn how to make movies like 'Hero' or 'House of Flying Daggers.'"
Show East is hardly alone. While there has been cooperation between South Korea and its neighbors for decades (China's Shaw brothers used South Korea for locations during the 1960s), the trend enjoys more momentum than ever before.
With the average Korean film budget rising to $4.5 million -- plus potentially millions more in prints-and-advertising costs -- and the local home video market on a huge decline, co-productions are the next logical step for an industry that has every intention of sustaining its success of the past few years.
In 1997, the entire Korean film industry's exports totaled less than $500,000; by last year, that figure had rocketed to nearly $60 million, according to the Korean Film Council.
South Korea's move outward arguably began in 2001 with Hur Jin-ho's "One Fine Spring Day," which had its $1.5 million budget co-financed by South Korea's Sidus Pictures, Hong Kong's Applause Pictures and Japan's Shochiku Films.
International deals then took a big leap forward in 2002 with the success of the Jeon Ji-hyun starrer "My Sassy Girl" in Hong Kong and South Asia. Bill Kong, head of Hong Kong's Edko Films (which went on to co-produce the 2004 Jeon starrer "Windstruck"), believes that the Korean film scene is vital enough to compete globally.
"What drew me to Korean production is their competitiveness in terms of their production cost: You can make a very decent film within a certain budget which is very competitive," Kong says. "They have great filmmakers about to burst onto the world."
Still, while Korean films have been booming for nearly six years, exploding budgets and intense competition have made profitability increasingly elusive. Without exports, the Korean movie industry would have lost more than $20 million in 2004.
"You have to look at Asia for survival -- you need the bigger market," says Esther Koo, vp at Hong Kong's Applause Pictures, which has, since its inception in 2000, focused on building up the film business throughout the region. "Look at what happened to Hong Kong a few years ago; the same thing could happen to Korea. You can't compete against Hollywood without bigger markets."
It's a lesson Korean filmmakers appear to be learning quickly.
The latest project for South Korea's iFilm, "Daisy," reflects the sector's new-found emphasis on productions with more international appeal. The film was written by South Korea's Kwak Jae-young, writer-director of "My Sassy Girl" and "Windstruck," and will be directed by Hong Kong's Andrew Lau. For good measure, the story of a cop and a professional killer vying for the love of the same woman will be set in the Netherlands.
"Since 'Daisy' is a project that has to be shot abroad and that has to have a certain style to it, we thought that maybe people who have had more experience in shooting abroad and who have their own style might be a good fit," iFilm CEO Jung Hoon-tack says. "That's why we turned to a Hong Kong director."
CJ Entertainment, Korea's largest distribution and exhibition company, also has been aggressive in seeking more involvement throughout Asia, particularly China. CJ hosted a China Night at last year's Pusan International Film Festival that featured Zhao Shi, China's vice minister of state administration of radio, film and TV, and CJ CEO Dong-ho Park. CJ also signed a memorandum of understanding with the China Performing Arts Agency to look for co-productions and investments in movies and theater.
One of South Korea's biggest production houses, Sidus is interested in targeting Japan because founder and CEO Tcha Sungjai believes that market is too lucrative to be ignored. His recent release "Rikidozan," a biopic about the famous Japanese professional wrestler, failed at the Korean boxoffice (it is set to open in Japan in the summer), but Tcha says it was worth it because of the connections developed. "The profits are just too good in Japan," Tcha says. "If a Japanese company wants to make a co-production, we'd be the first ones to form a partnership."
Sidus has teamed with Japan's CineQuanon to make "Heaven's Soldiers," an $8 million drama about North and South Korean soldiers caught in a time warp and sent back to the Imjin War between Korea and Japan in 1592.
Elsewhere, Show East's "April Snow," the latest film from Hur Jin-ho, is rumored to have been presold to UIP Japan for a staggering $7 million-$8 million (neither UIP nor Show East would confirm the price). "Snow" stars Bae Yong-joon, who starred in 2002's "Winter Sonata" and is the hottest Korean celebrity in Japan.
Show East is not neglecting the rest of Asia, either: When "Snow" rolls out in September, it will receive a near-simultaneous release in South Korea, Japan, Hong Kong, Indonesia, Taiwan, Thailand and China. Show East claims that it will be the biggest-ever simultaneous release for an Asian film.
"UIP Japan asked to open the film at the same time; otherwise, Japanese tourists would just come to Korea to see the film," Kim says. "In Japan, the ticket prices are much higher than Korea -- $18 vs. $7 in Korea."
Such deals are not limited to big-budget extravaganzas, nor are they limited to Asia: Several art house producers also are targeting European and American markets. A handful of auteurs who rely heavily on their international popularity to fund their films are benefiting from the West's acceptance of Korean art house fare.
Kim Ki-duk's 2003 release "Spring, Summer, Fall, Winter ... and Spring" made less than $300,000 in Korea but became the most successful Korean film of all time at the U.S. boxoffice, where it took in $2.3 million. Kim's latest, "The Bow" -- which screened in the Un Certain Regard section at this year's Festival de Cannes -- has been presold to 13 territories for $700,000.
French film company MK2 has invested several hundred thousand euros in two of art house director Hong Sang-soo's recent films: "Woman Is the Future of Man" and "A Tale of the Cinema." "Woman" producer Hanna Lee says that while international sales are not yet sufficient enough to allow Korean directors to make films without any local support, the long-term effects of promoting Korean cinema abroad are invaluable.
"(International sales) help broaden the market" she says. "Distribution (in Korea) has changed so much over the past five to six years. There are more screens, and so much more is going into promotion -- especially with the multiplexes -- that it has all made Korean films more commercialized."
Local art house production company LJ Film recently announced two films with an eye toward English-speaking markets: "Love Talk," a coming-of-age drama about young Korean-Americans in Los Angeles, is the next film from Lee Yoon-ki, who won much attention last year for his debut, "This Charming Girl"; and "Love House," the feature debut of Kim Pan-soo that focuses on Korean-Americans working in Los Angeles' online pornography industry.
With its high profile at Cannes this year, including "Bow" and the Directors' Fortnight entries "Crying Fist" and "The President's Last Bang," South Korea's thriving film sector appears on the verge of achieving success that would have seemed impossible only five years ago.
"When I started 15 years ago, a film normally got 14 or 15 prints," Show East's Kim says. "Now, though, top films get 300 -- even over 400. What's going to happen in the next 10 years, nobody knows -- but we need people who think internationally."
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