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In 2006, the number of days of the screen quota (theatrical movie screening days of Korean produced films in a year required by the law) was reduced to 73 days from 146 days per year. Three years after the reduction of screen quota, this paper studies the impact of reduction of screen quota system on Korean produced films. Using Non-parametric statistics, Gini Index and Regression analysis, this study shows that the average number of Korean moviegoer of Korean films which was released last three years(2007-2009) after the cutback of screen quota in 2006 is reduced to 640,109.9123 from 1,107,217.82 for three years(2003-2005) before the cutback. And this is significant in statistics. while Hollywood film gets 76,168,518 more audiences than the total number of audience for 2003-2005, the total numbers of Korean films is cut to 218,917,590 (2007-2009) from 245,802,356 (2003-2005). Gini Index of 2009(0.84) indicates that the inequality of a distribution of box office performance of Korean films is getting worse after the cutback. For now, the reduction of screen quota has negative effects for Korean films. Only the technological advance, education of relates personnel, redesigning of the related infrastructure, market-driven movies, creative production, and the promotion of the independent films can reduced the negative effects.

Impact of Cutback of Screen Quota in Korean Movie Market: Three Years Before and After the Screen Quota Reduction in 2006