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Korean Film Industry Asks the U.S. and
the Rest of the World’s Cooperation.
People in the Korean film industry ask people, who hope for a better world, for support and cooperation.
Yielding to the US pressure to slash the film quota as a precondition for the Korea-US Free Trade Agreement negotiation, the Korean government announced, all of a sudden, the reduction of the screen quota from 40 to 20 percent in January 2006. The current screen quota system requires all domestic theaters to show local films for 40 percent of the screening time (146 days a year, but actually 106 days in most cases). With the underdeveloped industrial infrastructure, the film quota has served for locally produced films as a minimum protection against severe competition from the Hollywood major producers. The Korean film milieu, in coalition with civil organizations opposing an unjustifiable Korea-US FTA, have dashed into a campaign against the screen quota reduction or abolishment with all our strength
Back in 1988, the Korean government gave in to the US trade pressure without prior notice to let Hollywood major distributors enter the Korean film market, which had not even developed the foundation for film production due to the military government’s strict censorship and control.
Despite the Koreans’ concerted efforts and commitment during the past two years to the protection of the film industry, they failed to make the government scrap the decision. After Korea opened the market to the US, the local films’ market share plunged from 60 percent to 15 percent in 5 years, posing a severe threat to the film industry’s survival. At this critical juncture, the movie groups established a civic organization to supervise the screen quota system, which existed only in name, and this resulted in more theaters showing more local films. As these screen quota watchdogs encouraged more and more theaters to abide by the rules, violations decreased from 20% in 1993 to zero in 2002, and finally, Korean films’ market share was recorded as being above 40%.
What enabled the film industry to survive the crisis were Korean film milieu’s strong commitment to have the quota system in place, the government’s progressive policies including the significant reduction of censorship and private investments into the audiovisual industries. Under these friendly conditions, Korean films’ market share went up to 40 percent over the past few years. Such positive growth, however, is still a baby step and the Korean film industry has not developed a sound foundation yet with the average production cost at $4 million - below one twenty-fifth of the major Hollywood films. Despite stark differences, ticket prices are the same for Hollywood films and Korean films. This is clearly unfair competition. Without the screen quota, the Korean film industry would face a threat to its survival.
The US has continuously brought up the screen quota issue for years, insisting the quota is a trade barrier against free competition. Washington is calling on the Korean government to reduce or abolish the quota system as a precondition for BIT and FTA. In the face of the 1997-98 foreign exchange crisis the Korean government promised the US it would decrease screen quotas behind a curtain in order to enter into a BIT with the US. Although the government tried to persuade the public, saying that a BIT and quota reduction were necessary to overcome the economic crisis it was only forced to suspend reduction due to strong resistance from the film milieu. Backed by civil organizations, this led to a failure of the Korea-US BIT.
Meanwhile, both Korean and the US economic department officials realized how economically significant the screen quota was and started to demand quota reduction or abolishment. Now the US government is asking the quota be reduced to 20% (73 days per year) as a precondition for resuming FTA talks. The US government also claims that a successful Korea-US FTA, with a condition for the US military’s strategically flexible operation in East Asia, would alleviate tension between South Korea and North Korea and increase opportunities for South-North economic cooperation. Such strong voices from the US led to the Korean government’s announcement of the quota reduction in January 2006. The US Congress also made an official announcement of the beginning of a Korea-US FTA on February 2, 2006.
Even under the Japanese colonial rule in the past, Korea had protected its language and culture against Japanese oppression. It means Korea has strong pride about its culture. However, as a result of pressure from huge Hollywood film makers and media enterprises, the U.S government had demanded of reduction of Korean screen quota system and the Korean government accepted it. Koreans regard the demand as unfair intervention in Korean cultural policy. We are concerned if this issue will lead to Korean people's antipathy against the U.S.
Culture should never be controlled by international trade agreement such as WTO and FTA. We do not agree with the US’ claim that movies are no more than commercial products. We believe that films are the fruits of efforts to create cultural values and to define our own views on communities, society and the world. One new film adds one new voice and perspective to the world. The same holds true for American movies. In this regard, we love American films as much as other films produced in Korea, France, Japan, India, Thailand, Egypt, Russia, China, Serbia and Montenegro, and so forth. In reality, however, given that 80% of the film trade volume comes from Hollywood, we have to be cautious about Hollywood films having an excessive market share.
The number of languages in the world has recently decreased by half. The sharp decline is attributable to the US-centered globalization and the rapid penetration of the Internet. It is warned that an end to linguistic diversity is as dangerous as the extinction of biological species to humankind. Powerful Hollywood films are a severe threat to various languages and cultures - not only films but also music, publishing and broadcasting. It is known there are less than 50 nations in the world that have cultural industries of substantial size. Potentials for cultural industries have been greatly damaged even in developed countries such as Britain and Germany, Australia, New Zealand, and Canada. Taiwan film share in the local market stands at a mere 0.2 percent even with the world-famous director Hou Hsiao Hsien.
The substantial curtailment of film diversity at the international level does no good to the US film industry, either. Hollywood is the biggest beneficiary in the world of the global film markets and diverse creativities of other countries. All of us are well aware of the fact that American films continue to evolve on the basis of other countries’ diverse films - even anti-Hollywood films. However, if Hollywood films keep increasing their global dominance at the current pace by making various cultures homogeneous, they will find it difficult to produce creative films and make a creative evolution in the future.
The UNESCO Convention on Cultural Diversity passed by 148 votes to 2, with the US and Israel being the two dissenting votes, in October in 2005. Under the convention, the international community agreed cultural products should be different from other global products. Also, we believe that public healthcare, labor, education, and agriculture should be differentiated. We express our concerns over the sweeping US-centered globalization, which is driving the public in developing and underdeveloped countries into the corner, rather than benefiting the world as a whole.
Koreans are not exception in this tragedy of neo-liberalist globalization. Although Korea showed rapid economic growth and became the 10th largest economy, the public still suffers from a heavy tax burden and poor social safety net. With the Asian 1997-98 foreign exchange crisis, the Korean government had to open its financial market, privatize state enterprises and increase labor flexibility, doubling the gap between rich and poor (of course, which means that the poor take up almost 90%).
If Korea and the US conclude an unprecedented FTA within a year that requires a 100% open market as the US requests, Korea’s social safety net and public sectors would lose capacity and the majority of Koreans will be at risk and we are sure of this. In this light, we oppose not only the screen quota reduction but also Korea-US FTA negotiations, which only involve unilateral globalization centered on the developed world.
Now, the Korean film milieu asks for a coalition with and support from American people who have contributed to making progress in the world with a good conscience and will. We ask everyone, at the individual, organizational and association levels, to express your support in a method you feel convenient, such as providing your signature, personal e-mail and/or holding a press conference, for the preservation of the screen quota system, and express your opposition to a Korea-US FTA and the US-oriented neo-liberal globalization. Your encouragement and coalition movement will provide a significant opportunity to let the world witness American consciences and will be an important wind of change. This will inspire the public and the film milieu with hope and courage.
In order to submit the attached letter of comments signed by you to the House during its public hearings, which starts on March 24, please send it to us through our e-mail(cdmi@korea.com) or fax(82-2-319-2039) by noon (in Korean time) on March 21.
Screen Quota Action Alliance (Alliance of the Korean film milieu, which oppose screen quota reduction and a Korea-US FTA)
================
Korean Film Industry Asks the U.S. and
the Rest of the World’s Cooperation.
People in the Korean film industry ask people, who hope for a better world, for support and cooperation.
Yielding to the US pressure to slash the film quota as a precondition for the Korea-US Free Trade Agreement negotiation, the Korean government announced, all of a sudden, the reduction of the screen quota from 40 to 20 percent in January 2006. The current screen quota system requires all domestic theaters to show local films for 40 percent of the screening time (146 days a year, but actually 106 days in most cases). With the underdeveloped industrial infrastructure, the film quota has served for locally produced films as a minimum protection against severe competition from the Hollywood major producers. The Korean film milieu, in coalition with civil organizations opposing an unjustifiable Korea-US FTA, have dashed into a campaign against the screen quota reduction or abolishment with all our strength
Back in 1988, the Korean government gave in to the US trade pressure without prior notice to let Hollywood major distributors enter the Korean film market, which had not even developed the foundation for film production due to the military government’s strict censorship and control.
Despite the Koreans’ concerted efforts and commitment during the past two years to the protection of the film industry, they failed to make the government scrap the decision. After Korea opened the market to the US, the local films’ market share plunged from 60 percent to 15 percent in 5 years, posing a severe threat to the film industry’s survival. At this critical juncture, the movie groups established a civic organization to supervise the screen quota system, which existed only in name, and this resulted in more theaters showing more local films. As these screen quota watchdogs encouraged more and more theaters to abide by the rules, violations decreased from 20% in 1993 to zero in 2002, and finally, Korean films’ market share was recorded as being above 40%.
What enabled the film industry to survive the crisis were Korean film milieu’s strong commitment to have the quota system in place, the government’s progressive policies including the significant reduction of censorship and private investments into the audiovisual industries. Under these friendly conditions, Korean films’ market share went up to 40 percent over the past few years. Such positive growth, however, is still a baby step and the Korean film industry has not developed a sound foundation yet with the average production cost at $4 million - below one twenty-fifth of the major Hollywood films. Despite stark differences, ticket prices are the same for Hollywood films and Korean films. This is clearly unfair competition. Without the screen quota, the Korean film industry would face a threat to its survival.
The US has continuously brought up the screen quota issue for years, insisting the quota is a trade barrier against free competition. Washington is calling on the Korean government to reduce or abolish the quota system as a precondition for BIT and FTA. In the face of the 1997-98 foreign exchange crisis the Korean government promised the US it would decrease screen quotas behind a curtain in order to enter into a BIT with the US. Although the government tried to persuade the public, saying that a BIT and quota reduction were necessary to overcome the economic crisis it was only forced to suspend reduction due to strong resistance from the film milieu. Backed by civil organizations, this led to a failure of the Korea-US BIT.
Meanwhile, both Korean and the US economic department officials realized how economically significant the screen quota was and started to demand quota reduction or abolishment. Now the US government is asking the quota be reduced to 20% (73 days per year) as a precondition for resuming FTA talks. The US government also claims that a successful Korea-US FTA, with a condition for the US military’s strategically flexible operation in East Asia, would alleviate tension between South Korea and North Korea and increase opportunities for South-North economic cooperation. Such strong voices from the US led to the Korean government’s announcement of the quota reduction in January 2006. The US Congress also made an official announcement of the beginning of a Korea-US FTA on February 2, 2006.
Even under the Japanese colonial rule in the past, Korea had protected its language and culture against Japanese oppression. It means Korea has strong pride about its culture. However, as a result of pressure from huge Hollywood film makers and media enterprises, the U.S government had demanded of reduction of Korean screen quota system and the Korean government accepted it. Koreans regard the demand as unfair intervention in Korean cultural policy. We are concerned if this issue will lead to Korean people's antipathy against the U.S.
Culture should never be controlled by international trade agreement such as WTO and FTA. We do not agree with the US’ claim that movies are no more than commercial products. We believe that films are the fruits of efforts to create cultural values and to define our own views on communities, society and the world. One new film adds one new voice and perspective to the world. The same holds true for American movies. In this regard, we love American films as much as other films produced in Korea, France, Japan, India, Thailand, Egypt, Russia, China, Serbia and Montenegro, and so forth. In reality, however, given that 80% of the film trade volume comes from Hollywood, we have to be cautious about Hollywood films having an excessive market share.
The number of languages in the world has recently decreased by half. The sharp decline is attributable to the US-centered globalization and the rapid penetration of the Internet. It is warned that an end to linguistic diversity is as dangerous as the extinction of biological species to humankind. Powerful Hollywood films are a severe threat to various languages and cultures - not only films but also music, publishing and broadcasting. It is known there are less than 50 nations in the world that have cultural industries of substantial size. Potentials for cultural industries have been greatly damaged even in developed countries such as Britain and Germany, Australia, New Zealand, and Canada. Taiwan film share in the local market stands at a mere 0.2 percent even with the world-famous director Hou Hsiao Hsien.
The substantial curtailment of film diversity at the international level does no good to the US film industry, either. Hollywood is the biggest beneficiary in the world of the global film markets and diverse creativities of other countries. All of us are well aware of the fact that American films continue to evolve on the basis of other countries’ diverse films - even anti-Hollywood films. However, if Hollywood films keep increasing their global dominance at the current pace by making various cultures homogeneous, they will find it difficult to produce creative films and make a creative evolution in the future.
The UNESCO Convention on Cultural Diversity passed by 148 votes to 2, with the US and Israel being the two dissenting votes, in October in 2005. Under the convention, the international community agreed cultural products should be different from other global products. Also, we believe that public healthcare, labor, education, and agriculture should be differentiated. We express our concerns over the sweeping US-centered globalization, which is driving the public in developing and underdeveloped countries into the corner, rather than benefiting the world as a whole.
Koreans are not exception in this tragedy of neo-liberalist globalization. Although Korea showed rapid economic growth and became the 10th largest economy, the public still suffers from a heavy tax burden and poor social safety net. With the Asian 1997-98 foreign exchange crisis, the Korean government had to open its financial market, privatize state enterprises and increase labor flexibility, doubling the gap between rich and poor (of course, which means that the poor take up almost 90%).
If Korea and the US conclude an unprecedented FTA within a year that requires a 100% open market as the US requests, Korea’s social safety net and public sectors would lose capacity and the majority of Koreans will be at risk and we are sure of this. In this light, we oppose not only the screen quota reduction but also Korea-US FTA negotiations, which only involve unilateral globalization centered on the developed world.
Now, the Korean film milieu asks for a coalition with and support from American people who have contributed to making progress in the world with a good conscience and will. We ask everyone, at the individual, organizational and association levels, to express your support in a method you feel convenient, such as providing your signature, personal e-mail and/or holding a press conference, for the preservation of the screen quota system, and express your opposition to a Korea-US FTA and the US-oriented neo-liberal globalization. Your encouragement and coalition movement will provide a significant opportunity to let the world witness American consciences and will be an important wind of change. This will inspire the public and the film milieu with hope and courage.
In order to submit the attached letter of comments signed by you to the House during its public hearings, which starts on March 24, please send it to us through our e-mail(cdmi@korea.com) or fax(82-2-319-2039) by noon (in Korean time) on March 21.
Screen Quota Action Alliance (Alliance of the Korean film milieu, which oppose screen quota reduction and a Korea-US FTA)
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Posted by: 斌 | 06-7-5 at 下午10:39