Screen quotas

Screen quotas are a legislated policy that enforces a minimum number of screening days of domestic films in the theater each year to protect the nation’s films. The screen quota system is enforced to prevent foreign markets from making inroads into the domestic film market. The screen quota system was started in the United Kingdom in 1927 through the Cinematograph Films Act 1927. Other countries enforcing screen quotas include France, South Korea, Brazil, Pakistan and Italy.

The screen quota system has been enforced in South Korea since 1967. The system is:

In South Korea, the screen quota has contributed to the rapid increase in the film market. Until the 1990s, the Korean film market had lacked the ability to raise capital funds for films. The quality of Korean films has increased dramatically, with an inflow of capital funds into South Korean film market since 2000. The government has decided to reduce its 40-year-old screen quotas from 146 days to 73 days in 2006. As a result of the free trade agreement between South Korea and the United States, which was agreed on April 2, 2007, the screen quotas in South Korea will not be subject to change from the current 73 days.

The controversy of limiting screen quotas initially stemmed from South Korea-America BIT (Bilateral Investment Treaty). As a solution to South Korea's foreign exchange crisis in 1997, President Kim Daejung suggested BIT between South Korea and America in a hope that it would increase credibility of South Korean economy, thus boosting foreign investments. In June 1998, President Kim and Bill Clinton agreed to enforce BIT during Kim’s visit to America. American government requested several requirements in opening South Korean market, including the alleviation of screen quotas. American government called for the reduction and abolition of screen quotas for the sake of Hollywood’s expansion. Initially, the South Korean government did not expect this to be much of a problem that it agreed to consider it. The representatives tried to reach an agreement by decreasing the duration of screening days to a certain extent.

When the decision to limit screen quotas was notified to the public however, Korean movie industry vehemently opposed to the change. The movie industry strongly criticized both the South Korean and American government and struggled to resist the amendments. As the objection grew serious, the issue grasped the attention of the public. Under the name of protecting cultural sovereignty, many in the country sympathized with the movie industry and condemned lessening of screen quotas.

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