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Journal of Korea trade v.14 no.1, 2010년, pp.37 - 65   SSCI
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Does a Home Market Model Explain the Korea-US Movie Trade? : An Empirical Analysis and Media Policy Implications

SANG-WOO LEE  
  • 초록

    The purpose of this study is to empirically investigate the determinants of market structure in the Korean film industry, specifically through the Korea - U. S. movie trade, by applying a home market economic model, i.e. the bigger the film-related revenue, the higher investment, the larger shares in domestic and foreign markets. Another purpose is to propose policy implications based on empirical results for the development of the Korean movie industry. Our results confirm that home market effects explain the fluctuating market share of Korean films in the domestic market. The existence of home market effects in determining film trade flow and the effects of domestic media policies on the growth of the national film infrastructure should be considered in the formulation of a domestic film policy. In particular, the importance of the domestic movie support base suggests deregulation of movie support media to increase the size of the Korean market and simultaneously increase Korean movies" shares of both foreign and domestic markets. American movies have kept a dominant position in the Korean movie industry mainly because the slow diffusion of movie support media in Korea is misdirected by protectionism and other similar policies. The recent increase in the share of the Korean market taken by locally-produced Korean movies may be explained by the deregulation of the domestic film industry and movie support media. As movie exporters, Korean film distributors who wish to exploit foreign markets should target those countries with low cultural discounts and poor movie infrastructure. More investment in the Korean movie industry would facilitate higher penetration of Korean movies into culturally homogeneous but lesser investing foreign markets.


  • 주제어

    home market .   movie trade .   Korean movie industry .   movie support media .   media policy.  

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