Seoul, South Korea — South Korea’s entertainment industry, long celebrated for its global cultural influence, is facing unprecedented challenges as both cinema and K-pop confront structural shifts that threaten their creative foundations.
Once dominant on world stages from the Oscars to global music charts, the country’s cultural exports now face declining revenues and shifting audience behaviors.
From BTS topping international charts to Bong Joon-ho’s Parasite winning Oscars in 2020, South Korea has become a cultural superpower.
Its arts exports hit a record $15.18 billion in 2024, underscoring the global appetite for Korean culture. Yet beneath the headline numbers, the industries that propelled the Korean Wave are showing signs of stress.
Cinema attendance has fallen sharply, with total admissions dropping 45 percent from 226 million in 2019 to 123 million in 2024. Box office revenue has followed a similar trajectory, declining from $1.3 billion to $812 million.
Industry insiders warn the trend is not temporary. “Years of tightening margins and rising costs have thinned out mid budget productions, where new directors once experimented,” said Jason Bechervaise, a professor of Korean film at Hanyang University.
Korean distributors, once releasing more than 40 locally produced films annually, now anticipate only about 20 releases in 2025, with projections for 2026 even lower.
Director Kim Han-min, known for the Yi Sun-sin trilogy, told lawmakers last year that the industry had “almost collapsed.”
Theatrical windows, the period between cinema release and streaming availability, have shortened, leaving audiences with little incentive to visit theaters.
This change has accelerated consolidation, with Lotte Cinema and Megabox announcing plans to merge their 1,682 screens.
Premium formats such as IMAX and Dolby are being introduced, but experts caution that technological upgrades alone cannot sustain recovery without a consistent flow of domestic films.
K-pop, South Korea’s other cultural export pillar, is also experiencing turbulence. Physical album sales fell 19.5 percent in 2024, marking the first decline in a decade.
Concert revenues, however, have surged, reflecting a pivot toward global touring and revenue from dedicated fanbases.
“Companies began catering mainly to the core fandom and forwent broad public reach,” said Areum Jeong, a professor of Korean studies at Arizona State University.
She explained that this superfan focused model shapes how idols are recruited, trained, and marketed.
While financially effective, it raises questions about the ability to produce global phenomena like BTS or Blackpink.
Smaller agencies, once vital for diversity and experimentation, are struggling amid rising production costs and shrinking fan spending.
Even as K-pop and cinema navigate domestic challenges, the global influence of Korean culture continues to grow, sometimes without direct Korean participation.
Netflix’s animated hit KPop Demon Hunters, co-directed by Korean Canadian Maggie Kang, included Korean American voice actors but was produced in the United States.
Jeong described it as a “de-territorialized, hybrid idea of K-pop” rather than an authentic Korean product. Similar groups trained in Korean methods are now emerging in Japan and Southeast Asia, creating international competition.
Experts note that audiences still seek authentic experiences, with renewed interest in museums, food brands, and cosmetics tied to Korean cultural works.
“Creative dynamics have shifted,” said Bechervaise. “As domestic productions became formulaic, American studios and Korean diaspora creators began drawing on Korean cultural elements in films like Minari and Beef.”
The South Korean government has introduced a five year, 51.4 trillion won investment plan to bolster the country’s cultural footprint and strengthen domestic infrastructure.
President Lee Jae Myung appointed Park Jin-young, founder of JYP Entertainment, to co-chair a presidential cultural committee focused on international promotion.
Major agencies such as HYBE and SM Entertainment are opening subsidiaries across Southeast Asia, India, and China.
Critics warn that prioritizing overseas expansion may risk neglecting the domestic ecosystem that once fueled Korea’s cultural rise. “Financial success alone cannot guarantee creative renewal,” said Jeong.
South Korea’s entertainment industry remains a formidable cultural force, but both cinema and K-pop face structural and financial pressures that require careful navigation.
Declining film admissions, evolving fan models, and international competition highlight that global visibility does not always translate into domestic stability. The coming years will test the industry’s ability to balance financial success with sustained creative innovation.
