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South Korea takes on Hollywood

From CNN Correspondent Andrew Stevens

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S. Korean filmmakers have Hollywood complaining.
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SEOUL, South Korea (CNN) -- "Rolling," says one of the assistants. "Action!" exclaims a director.

It's an increasingly familiar sight in South Korea these days -- the making of movies.

South Korean films are packing a punch, both at home and overseas, and are more popular than ever.

Box office sales are strong and critical acclaim is growing on the international circuit.

But the success of the Korean film industry is not all about quality. This is a protected industry and the United States, led by Hollywood, wants to change that.

Under a government quota system South Korean cinemas must show local films at least 146 days of the year.

Not only does that encourage filmmakers, it also reassures the industry's financial backers that there will be a guaranteed outlet to support investment returns.

At the moment Korean films are actually being shown more than the quota level because of high demand. They're also taking almost 50 percent of box office sales.

But the United States is crying foul and claims the quota system provides unfair competition.

"I have a hard time saying that any industry after 40 years of protection still needs protection," Tami Overby from the American Chamber of Commerce in Korea told CNN.

"Korean movies are very good. They are winning awards at international film festivals."

That may be so, but the Korean film industry says it just doesn't have the muscle to compete against Hollywood.

"Because the economic influence and the distribution network of the United States is far superior, it is difficult for the movie industry in other countries to survive," the nation's best-known actor, Ahn Sung Ki, told CNN.

"But movies are a part of our culture before it is an industry. Therefore, I believe that such culture should be kept intact."

The industry has a sympathetic ear in the form of South Korea's Culture and Tourism Minister Lee Chang-dong, a renowned movie director in his own right.

"We view the screen quota system as a way to develop and protect our movie industry and consider it an important policy. So, for the U.S. to say whether it is necessary or not is not appropriate," Lee said.

But the United States is upping the ante in the fight.

It says it won't sign off on a new bilateral investment treaty with South Korea, unless the quota system is changed.

The treaty, according to the United States, would make South Korea a more favored destination for U.S. investment. In fact, Korea's current recession is tipping the balance in favor of U.S. demands.

But the movie industry says it will continue to fight to protect what it sees as Korea's cultural heritage.


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