This year, the Korean film industry experienced a notable rebound in the first quarter, with revenue and audience numbers more than doubling compared to the same period last year, marking the highest performance since the onset of the COVID-19 pandemic. However, the short-term increase driven by a few successful films does not indicate a full recovery for the industry as a whole. Last year, the profitability of Korean films worsened, and the operational foundation for theaters continued to decline.
According to the Korean Film Council's '2026 Q1 Korean Film Industry Report,' total box office revenue for the first quarter reached 318 billion won, a 58.7% increase from the same period last year. The total number of moviegoers rose to 31.9 million, up 53.2%.
The growth of Korean films was even more pronounced. Revenue from Korean films in the first quarter was 233.3 billion won, a 117.5% increase year-on-year, while the number of viewers reached 24.01 million, up 115.1%. Both revenue and audience figures represent the highest levels for the first quarter since the pandemic began in 2020.
Korean films captured a market share of 73.4% in revenue and 75.3% in audience attendance. These figures are the highest for revenue since 2007 and for audience share since 2005, based on first-quarter data.
The rebound was significantly influenced by several hit films. In January, the mid-budget film 'What If' performed well, and in February, 'The King’s Man' generated 151.8 billion won in revenue and attracted 15.73 million viewers in just the first quarter. This single film accounted for nearly half of the total box office revenue and audience numbers for the quarter.
In contrast, last year's performance was markedly different. The '2025 Korean Film Industry Report' indicated that total box office revenue for the year was 1.047 trillion won, a 12.4% decrease from the previous year. The total audience count fell to 100.6 million, down 13.8%. The lack of blockbuster films contributed to a decline in both revenue and audience numbers for two consecutive years.
The decline in Korean films was even steeper. Last year, revenue from Korean films was 419.1 billion won, a 39.4% drop, while the number of viewers fell to 43.58 million, a 39.0% decrease. Excluding the COVID-19 period, these figures were the lowest since 2009 for revenue and since 2005 for audience numbers.
Profitability also deteriorated. Among 30 commercial films with production costs exceeding 3 billion won, the average estimated return on investment was -33.13%, a decline of 13.86 percentage points from the previous year's -19.27%. Only six of the 30 films surpassed the break-even point, representing just 20% of the total. Additionally, nine films fell into the range of -80% to -100% in profitability. While some films were successful, many commercial films struggled to recoup their production costs.
The operational foundation for theaters is also shrinking. As of the end of 2025, there were 547 theaters operating nationwide, a decrease of 23 from the previous year. The number of screens fell to 3,154, down 142, and the total seating capacity dropped to 407,056, a decrease of 39,319. Although 12 new theaters opened, 35 closed, an increase of 12 from the previous year.
The Q1 figures suggest that if appealing Korean films are released, audiences may return to theaters. However, the data also reveal a structure where the overall market performance is heavily influenced by the success of specific films. While one or two hits can uplift the market, if this trend does not translate into improved profitability for production and a recovery of the theater operational base, the rebound may not be sustainable.
The government's expansion of support for mid-budget film production and agreements between production companies and talent management agencies to adjust actor fees are also related to these indicators. To translate audience growth into future productions, it is essential to move beyond reliance on a few successful films and establish a foundation for the consistent production and release of Korean films of various scales.
The first quarter of this year has confirmed the potential for recovery in Korean cinema. However, without a simultaneous recovery in average profitability and the operational foundation of theaters, the market may again be significantly swayed by the performance of a few successful films. The numbers reveal that the Korean film industry still has foundational work to do in terms of production and exhibition.
According to the Korean Film Council's '2026 Q1 Korean Film Industry Report,' total box office revenue for the first quarter reached 318 billion won, a 58.7% increase from the same period last year. The total number of moviegoers rose to 31.9 million, up 53.2%.
The growth of Korean films was even more pronounced. Revenue from Korean films in the first quarter was 233.3 billion won, a 117.5% increase year-on-year, while the number of viewers reached 24.01 million, up 115.1%. Both revenue and audience figures represent the highest levels for the first quarter since the pandemic began in 2020.
Korean films captured a market share of 73.4% in revenue and 75.3% in audience attendance. These figures are the highest for revenue since 2007 and for audience share since 2005, based on first-quarter data.
The rebound was significantly influenced by several hit films. In January, the mid-budget film 'What If' performed well, and in February, 'The King’s Man' generated 151.8 billion won in revenue and attracted 15.73 million viewers in just the first quarter. This single film accounted for nearly half of the total box office revenue and audience numbers for the quarter.
In contrast, last year's performance was markedly different. The '2025 Korean Film Industry Report' indicated that total box office revenue for the year was 1.047 trillion won, a 12.4% decrease from the previous year. The total audience count fell to 100.6 million, down 13.8%. The lack of blockbuster films contributed to a decline in both revenue and audience numbers for two consecutive years.
The decline in Korean films was even steeper. Last year, revenue from Korean films was 419.1 billion won, a 39.4% drop, while the number of viewers fell to 43.58 million, a 39.0% decrease. Excluding the COVID-19 period, these figures were the lowest since 2009 for revenue and since 2005 for audience numbers.
Profitability also deteriorated. Among 30 commercial films with production costs exceeding 3 billion won, the average estimated return on investment was -33.13%, a decline of 13.86 percentage points from the previous year's -19.27%. Only six of the 30 films surpassed the break-even point, representing just 20% of the total. Additionally, nine films fell into the range of -80% to -100% in profitability. While some films were successful, many commercial films struggled to recoup their production costs.
The operational foundation for theaters is also shrinking. As of the end of 2025, there were 547 theaters operating nationwide, a decrease of 23 from the previous year. The number of screens fell to 3,154, down 142, and the total seating capacity dropped to 407,056, a decrease of 39,319. Although 12 new theaters opened, 35 closed, an increase of 12 from the previous year.
The Q1 figures suggest that if appealing Korean films are released, audiences may return to theaters. However, the data also reveal a structure where the overall market performance is heavily influenced by the success of specific films. While one or two hits can uplift the market, if this trend does not translate into improved profitability for production and a recovery of the theater operational base, the rebound may not be sustainable.
The government's expansion of support for mid-budget film production and agreements between production companies and talent management agencies to adjust actor fees are also related to these indicators. To translate audience growth into future productions, it is essential to move beyond reliance on a few successful films and establish a foundation for the consistent production and release of Korean films of various scales.
The first quarter of this year has confirmed the potential for recovery in Korean cinema. However, without a simultaneous recovery in average profitability and the operational foundation of theaters, the market may again be significantly swayed by the performance of a few successful films. The numbers reveal that the Korean film industry still has foundational work to do in terms of production and exhibition.
* This article has been translated by AI.
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