[News Analysis] Are movie tickets in Korea too expensive?

Veteran actor Choi Min-sik’s remarks on an interview show recently have sparked debate about whether movie tickets at South Korean cinemas are indeed expensive. While his comment drew mixed reactions, the country’s largest multiplex cinema chain decided to halve its ticket prices for four days.

“Movie theaters have raised (ticket) prices a lot. Please lower them a bit. If you suddenly raise them like that, I wouldn’t go anywhere either (even as an actor). Do you think people will go through the legwork of buying movie tickets after streaming several movies while sitting at home?” the 62-year-old actor said on the popular MBC interview show, “Son Seok-hee’s Questions,” which aired Aug. 17.

Choi later explained his comment that people don’t go to cinemas anymore due to “expensive ticket prices,” relying instead on streaming platforms to watch films in the comfort of their own homes.

It was the first time a renowned actor publicly attributed local cinemas’ low ticket sales to their expensive ticket prices.

How expensive are movie tickets in Korea?

According to Korea Film Council data, the average price of a movie ticket at a multiplex chain cinema in 2019 was 8,444 won. Following the pandemic outbreak, the average annual price at multiplexes across the country jumped to 10,080 won in 2023.

As of August this year, the price of a movie ticket has now risen as high as 15,000 won for weekend peak screening times. Tickets for watching 4D or IMAX theaters have climbed to around 20,000 won each.

Some industry insiders argue that the increases reflect inflation.

“Since the cost of living, workers’ wages and rent all went up after the pandemic outbreak, movie ticket prices had to, inevitably, go up,” an official from a large distributor said to The Korea Herald. “Operating a cinema requires constant investment, such as upgrading the facilities as well as customer service.”

According to CGV’s breakdown of the price of a movie ticket, the cinema operator takes home 45 percent of the ticket price, with the distributor taking home 55 percent.

Though raising the ticket price does not benefit only the cinema operator, small- and mid-sized arts film distributors said they have actually not benefited from the price hikes at all.

“To be honest, whether to increase the ticket price depends solely on the decision of cinema operators. (Higher prices for movie tickets) do not mean that the distributors get more profit,” another official from a different local distributor told The Korea Herald.

“Because we distribute movies focused on art and indie films, when ticket prices were lower, more moviegoers would choose our movies. I feel like the increases in movie ticket prices have raised the entry barrier to enjoying a more diverse range of films,” he added.

Some people point to available movies’ quality as also having an impact on the number of moviegoers.

“Because movie theaters are still struggling after the pandemic disruptions – with ticket sales still at 60 percent of pre-pandemic levels – I can see why they wanted to raise ticket prices suddenly. Still, the fallen number of moviegoers doesn’t really have to do with ticket prices, but rather with the quality of the movies playing at the cinema,” film critic Kim Hern-sik said in an interview.

“When you think of options for cultural activities, the ticket prices for movies are definitely not as much compared to musicals or plays. I think it’s more about the absolute value of what watching a movie means to the audience,” Kim said.

How much are movie tickets elsewhere?

According to data on Numbeo, the world’s largest database on the cost of living, South Korea’s movie tickets are currently priced at 15,000 won ($11.25), ranking 27th among the 96 countries surveyed.

Topping the list was Switzerland ($23.15), followed by Denmark ($17.76) and Finland ($16.56). Movie ticket prices in the US and Japan were $14 and $12.31, respectively.

However, compared to the actual standard of living in South Korea based on GDP, movie tickets here actually cost double those in the US.

Meanwhile, the country’s largest multiplex chain, CGV, has slashed movie ticket prices by more than 50 percent for four days this week, starting Tuesday.

During what it is calling “Culture Week,” CGV is selling tickets for 7,000 won each for films screenings between 5 p.m. and 9 p.m. at 2D theaters Monday through Thursday.

“We decided to extend ‘Culture Day,’ which we already have, to reinvigorate sluggish local theaters, despite it being the peak summer season, after negotiating with production firms and distributors,” said a CGV official. “Culture Day” falls on the last Wednesday of each month and is when many cultural institutions in Korea offer discounted or free admission.

While some industry insiders saw this four-day discount as a kind of formality, the country’s association of movie industry members welcomed the move.

“We welcome the decision of CGV and highly appreciate its move to prepare a breakthrough to reinvigorate the local film industry,” said a statement from the association issued Tuesday