Industry veterans allege that exhibition chains often required them to bulk-buy promotional tickets to their own movies as an upfront cost of getting screen time — and that the case isn't as simple as Seoul police have portrayed.
But some Korean film business insiders say the practices the police uncovered were an “open secret” in the industry for years, and oftentimes not nearly as nefarious as they might appear.
“We will recommend an improved system to the [Korean Film] Council and Culture Ministry, as theaters are solely responsible for transmitting box office data and currently there are no sanctions against distributors and production companies that collude with the theaters,” Seoul police said in a statement.
“The market practice is not so simple,” adds Oh Dong-jin, a film critic based in Seoul, noting that some companies’ marketing activities entail legitimate purchases of tickets, while others have engaged in more questionable practices. Seoul police, however, appear to have labeled all of these activities as criminal.
“There could have been some errors between the pre-booked tickets and the actual turnout, but I feel like the police findings might have been exaggerated a bit,” says Kim Seong-su, a cultural critic also based in Seoul. “I do believe that local box office has been managed quite transparently.”, a documentary surrounding the disgraced ex-Justice Minister Cho Guk, which was also included in the police investigation, as an example.
“At the end of the day, directors get compensated based on the profits made through ticket sales, after paying out the actual production cost and marketing fees — but we don’t always get accurate data on how much and on what the film’s marketing budget is spent,” the director said.
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