(LEAD) culture ministry-film industry

▲ Participants pose for a photo ahead of the inaugural meeting of the public-private consultative body on improving the domestic film distribution system at the Korean Film Council office in Seoul on May 29, 2026. (PHOTO NOT FOR SALE) (Yonhap)

▲ Culture Minister Chae Hwi-young (2nd from R) attends a film subcommittee meeting of the ministry's advisory committee on culture and arts policy in Seoul, in this undated file photo provided by the ministry. (PHOTO NOT FOR SALE) (Yonhap)

(LEAD) culture ministry-film industry

(LEAD) S. Korea launches public-private committee to shape film 'holdback' rules

(ATTN: UPDATES with quotes from culture minister, background info in para 3; ADDS name of consultative body in 2nd para, photo)

By Shim Sun-ah

SEOUL, May 29 (Yonhap) -- South Korea launched a public-private consultative body Friday to discuss a proposed "holdback" system, which would impose a mandatory waiting period before films released in theaters can be shown on streaming platforms, with authorities aiming to reach a deal by August.

The Ministry of Culture, Sports and Tourism and the Korean Film Council (KOFIC) held the first meeting of the body on improving the domestic film distribution system, bringing together 22 representatives from across the film industry. Participants include Culture Minister Chae Hwi-young, as well as executives from film studios, distributors, cinema chains and IPTV platforms.

The move comes as the South Korean film market recently showed signs of recovery following a deep slump triggered by the COVID-19 pandemic. This optimism has been particularly fueled by the Korean film sensation "The King's Warden," which drew 16.88 million viewers to claim second place at the all-time box office.

"With the film industry people working together with the government, the industry has begun to show signs of life again," Minister Chae said during the meeting at the KOFIC office in Seoul. "We will pool our efforts to ensure that the industry, having undergone what can be described as CPR, can recover a normal and healthy ecosystem."

Discussions are centered on shaping "holdback" rules with a bill seeking a six-month holdback period still pending at the National Assembly.

The legislation aims to revitalize a local film industry grappling with declining attendance in theaters and shifting consumer viewing habits. However, the proposal has drawn criticism from film studios, investors and distributors that delaying secondary releases could worsen their financial hardship by slowing the recovery of investments and stifling future funding, particularly as streaming demand continues to grow.

In addition to release windows, the consultative body will discuss broader measures aimed at stabilizing the industry's revenue structure, and fostering cooperation between theaters and streaming platforms, according to the ministry.

Officials said the group plans to narrow differences in the coming months and sign a voluntary agreement on holdback rules aimed at supporting the film industry's shared growth by August.

"We will work to reach a holdback agreement that could minimize potential side effects by reflecting market realities while maximizing industry revenues," Chae said.

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