Culture, Sports and Tourism Minister Choi Hwi-young said talks on introducing a "holdback" system for films are "now in a deliberation stage aimed at wrapping things up," raising the prospect of a grand compromise by the end of the year.
Choi made the remarks on the 13th at a meeting of the film subcommittee of the Culture and Arts Policy Advisory Committee, held at the National Museum of Modern and Contemporary Art's Seoul branch. "We had said we would tie up the holdback issue before the autumn winds came and then move on to the next homework, but at the final stage a point emerged where each side wanted to think a bit more before proceeding," the minister said. "This is now a period of deliberation. We are at a stage where each party is deliberating on how to bring this to a conclusion."
A holdback system sets a waiting period before a film released in theaters can be made available on other platforms, such as online video streaming services. The introduction of a holdback is currently under discussion by a public-private consultative body on improving the distribution structure of Korean films. The body includes 22 participants, among them Choi as well as production companies, investors, distributors and theater operators that cover the entire film distribution chain.
The government had initially said it would reach a conclusion on the holdback by the end of August, but the discussions have dragged on into mid-October.
The holdback is one of the biggest pending issues in the film industry. Theater operators want an institutional guarantee of a fixed holdback period to stem the loss of moviegoers, while production and distribution companies have opposed uniform regulation, citing the need to recoup investments. When the discussions began, a holdback period of six months was the main proposal on the table.
On this point, Choi said: "What we are discussing is that the holdback is not the final destination for improving the film system. Starting from here, there are the film industry's long-standing tasks that have been raised over the years — a cap on the number of screens per film in theaters, transparent and fair settlement of revenues — and as alternatives, efforts to use theaters to provide incentives for film production and to preserve diversity. I think we are taking time to think together, in the course of these discussions, about how to sort out the holdback and these issues in harmony and quickly, and then move on to the next stage."
The Ministry of Culture, Sports and Tourism is expected to reach a conclusion after one or two more rounds of discussion. The talks are temporarily on hold because of the parliamentary audit season in the National Assembly.
"We have already made more progress than expected," Choi said. "But this is not a matter for the government to step in and decide. The aim has been to drive this through a voluntary agreement among private parties, so the government is waiting a little longer."
At the advisory meeting, Choi also briefed film industry officials on the government's 2027 budget proposal for the film sector and the direction of future support.