Movie Revenue Sharing 2025 Levy Settlement Guide

Woman reviewing a document with charts alongside a staff member at a cinema counter

This content applies specifically to South Korea.

In 2025, South Korea abolished the movie-theater admission levy formerly calculated at 3%. That means you cannot automatically deduct the old 3% when estimating a current film settlement. A film reaches break-even only when all net theatrical and ancillary revenue equals total costs—not when attendance reaches a headline audience number.

Older examples remain easy to misread because they may use the former levy, treat VAT too simply, or show a 6-to-4 split without identifying which party receives each share.

 

What ticket sales actually become

A ticket purchase first produces gross revenue, not profit for the production company. Taxes, the theater’s contractual share, distribution fees, marketing expenses, and other agreed costs may be handled before investors recoup their principal and any remaining profit is divided.

The article examines an older simplified example using KRW 10 billion in ticket sales. It subtracts KRW 1 billion as an assumed 10% deduction and KRW 300 million as the former 3% levy, leaving KRW 8.7 billion. A 6-to-4 division produces KRW 5.22 billion and KRW 3.48 billion, but the contract must identify who receives each amount. The former levy must not be treated as current.

 

Using revenue sharing to judge break-even

Net theatrical settlement is only one side of the calculation. Add net income from OTT licenses, transactional VOD, broadcasting, overseas rights, remakes, and merchandising, then compare that total with production, distribution, marketing, and other contractual costs.

Cash commonly follows a settlement waterfall: platform and theater shares and taxes are handled first, contractual expenses follow, and investors recoup principal in the agreed order. Directors usually receive a directing fee; a performance bonus exists only when a separate contract clause provides it.

 

A practical settlement checklist

  • Confirm the revenue base: Separate gross ticket sales from net settlements and ancillary-rights income.
  • Check current deductions: Do not reuse the abolished 3% levy, and remember that VAT included in a consumer price is not simply 10% of the total.
  • Read the contract: Verify the theater split, distribution fees, recoupment priority, rights holder, and bonus clauses.
  • Include every cost: Omitting marketing or contractual expenses makes the break-even threshold appear lower.

 

What the detailed guide clarifies

The original article on Injoys explains each revenue channel, the calculation model, participant income, and the advantages and risks of presales and diversified investment. Its breakdowns help you distinguish revenue, recoupment, and distributable profit without assuming that box-office sales flow directly to filmmakers.

Read the full article on Injoys

 

Who should verify the figures first

This framework applies across large commercial films, small and medium productions, independent films, OTT-focused projects, and films with overseas presales. Independent films especially may recoup costs through grants, festivals, screenings, and rights sales rather than theaters alone; grants are not a director’s personal income and may require expense records and final reports.

Before calculating a current settlement, check the Korean Law Information Center for the latest levy rules and the Korean Film Council’s KOBIS system for revenue statistics, because the article does not specify a reference date. Then use the original article on Injoys to compare those figures with the relevant contract and settlement order.

Read the full article on Injoys

This post was written with assistance and published on a channel run by Injoys (injoys.com). The original article and its sources are at the link above.

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