▲ Culture Minister Chae Hwi-young (2nd from R) attends a film subcommittee meeting of the ministry's advisory committee on culture and arts policy in Seoul, in this undated file photo provided by the ministry. (PHOTO NOT FOR SALE) (Yonhap)

culture ministry-film industry

S. Korea launches public-private committee to shape film 'holdback' rules

By Shim Sun-ah

SEOUL, May 29 (Yonhap) -- South Korea launched a public-private consultative body Friday to discuss a proposed "holdback" system, which would impose a mandatory waiting period before films released in theaters can be shown on streaming platforms, with authorities aiming to reach a deal by August.

The Ministry of Culture, Sports and Tourism and the Korean Film Council said they will hold the first meeting of the body later in the day in Seoul, bringing together 22 representatives from across the film industry. Participants include Culture Minister Chae Hwi-young, as well as executives from film studios, distributors, cinema chains and IPTV platforms.

Discussions are centered on shaping "holdback" rules with a bill seeking a six-month holdback period still pending at the National Assembly.

The legislation aims to revitalize a local film industry grappling with declining attendance in theaters and shifting consumer viewing habits. However, the proposal has drawn criticism from film studios, investors and distributors that delaying secondary releases could worsen their financial hardship by slowing the recovery of investments and stifling future funding, particularly as streaming demand continues to grow.

In addition to release windows, the consultative body will discuss broader measures aimed at stabilizing the industry's revenue structure, and fostering cooperation between theaters and streaming platforms, according to the ministry.

Officials said the group plans to narrow differences in the coming months and sign a voluntary agreement on holdback rules aimed at supporting the film industry's shared growth by August.

"We will work to reach a holdback agreement that could minimize potential side effects by reflecting market realities while maximizing industry revenues," Chae said.

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