Animation has risen to mainstream culture in Korea, but domestic works are reportedly being overlooked compared to foreign ones. A bill supporting the domestic animation industry has been proposed in the National Assembly, but due to significant political uncertainty in the country, it is expected to be stalled for a considerable time.
◇ "Foreign productions are more entertaining than domestic ones"… Decrease in viewer ratio
According to the Korea Creative Content Agency's "2024 Animation User Survey" released on the 29th of last month, domestic animated film viewers (aged 10 to 60) accounted for 10% of the 1,570 respondents. The viewer ratio for domestic animated films released in theaters was 17.6% in 2021, 12.9% in 2022, and 12.7% in 2023, showing a continuous decline. In contrast, the viewer ratio for foreign animations increased from 54.2% last year to 63.6% this year, marking the highest percentage in the last four years.
Until last year, the Korea Creative Content Agency reflected the survey results of infants aged 3 to 9 in overall age statistics, but starting this year, it has been calculated separately. Among infant respondents, 21.8% said they watched domestic animations, while 41.1% reported watching foreign animations.
The analysis suggests that viewers are turning away from domestic theatrical animations because there is a lack of content suitable for adolescents and adults. This year, 43.5% of respondents cited the reason for not watching domestic animations as "most of them are for infants." The film "Yumi's Cells: The Movie," based on the Naver Webtoon "Yumi's Cells," was released in April, but only 76,000 viewers attended, resulting in commercial failure.
Among the respondents, 43.4% said domestic theatrical animations are "less entertaining than foreign ones." "Inside Out 2," released in June, achieved an audience of 8.79 million. The film "Moana 2," released on November 27, currently has a cumulative audience of 2.74 million. The film "Doraemon: The Movie - The Earth Symphony of Nobita," released in July, recorded an audience of 100,000. The film "Detective Conan: The Scarlet Bullet," released in October, reached an audience of 87,000, and the Japanese animation "My Hero Academia: The Movie - Your Next," released in November, recorded an audience of 71,000.
◇ High utilization of existing IP, but difficulties in attracting investment due to uncertain revenue
There are analyses suggesting that animations can be produced by utilizing webtoons or comics with high recognition in the domestic market. However, due to uncertain revenue, creators tend to prefer adaptations into dramas with broader appeal rather than animations. This year, webtoon-based dramas like "Retirement Planning," "Lighting Store," and "The Call from the Goddess" have been released.
There are calls for government support to foster the growth of the Korean animation industry. According to a report by consulting firm PwC, the domestic animation market size was $76 million as of 2022, accounting for only 2% of the global market ($3.877 billion). Japan, a stronghold of animation, is actively promoting the export of its own content, with the government aiming to boost the export of comics, games, and other domestic content to 20 trillion yen (approximately 177 trillion won) by 2033 under the "Cool Japan Strategy."
The Korea Creative Content Agency stated, "To improve the domestic animation industry's development, it is necessary to increase investment for the qualitative enhancement of animations" and noted, "It is essential to create works targeting not only infants but also adolescents and adults, similar to foreign animations."
In the National Assembly, a bill concerning the promotion of the animation industry, proposed by Kim Seung-soo, a member of the People Power Party, was submitted in August. This bill includes provisions for financial support for the domestic animation industry. However, discussions are likely to be postponed due to increased political uncertainty following the martial law situation.
Kim Seung-soo said, "To ensure the development of the domestic animation industry and enhance future competitiveness in a global market where the U.S. and Japan are strong, innovative support policies that respond to the changing animation production and distribution environments are necessary."