A bill proposed by Democratic Party of Korea Representative Lim Oh-kyung, dubbed the “holdback legalization bill,” is pushing for a mandatory six-month holdback period—the time between a film’s theatrical release and its distribution to other platforms like online services. Citizen groups have opposed the measure, arguing it “focuses solely on protecting theaters while infringing on consumers’ right to view content.”
Representative Lim submitted a revision to the *Act on the Promotion of Films and Videos (Film and Video Act)* in September, stipulating a maximum six-month window between a film’s theatrical release and its availability on other platforms. Films are typically distributed in the order of theaters → IPTV → OTT → TV channels, and the amendment legally mandates a maximum six-month theatrical screening period.
The Citizens’ Assembly for Consumer Sovereignty criticized the policy in a statement on the 26th, stating, “Mandatory holdback periods are not an effective policy for anyone.” It highlighted that the primary reasons for reduced theater attendance were a “lack of worthwhile films, 24.8%” and “ticket price increases, 24.2%,” with the highest response (46%) favoring “leaving the holdback period to market autonomy.”
The group added, “With 90% of the domestic theater market concentrated in a few large chains, fixed holdback periods could instead increase price pressures. If the rule applies only to domestic films—unlike foreign films tied to overseas distribution contracts—it could put the entire domestic film industry at a competitive disadvantage.”
It further warned, “In the worst-case scenario, consumers may turn to illegal platforms, and those with limited access to theaters could face restricted viewing opportunities, exacerbating consumer harm.”
Consumer Watch also released a commentary on the 26th titled, “Holdback Bill in the Name of Film Industry Protection: Ultimately, the Victims Are Consumers,” calling the measure “excessive regulation that ignores consumer benefits.”
The organization stated, “Declining theater attendance stems from structural factors like pricing, leisure competition, and OTT expansion. Forcing film distribution timelines will not bring audiences back. Instead, it risks weakening the film industry’s competitiveness by blocking revenue diversification for producers and distributors.”
It continued, “The film industry can only thrive through competition among diverse media—including theaters, IPTV, and OTT—to attract consumer choice. Legally mandating the use of specific media for a set period is outdated, hindering both consumer welfare and market innovation.”
Finally, it urged, “We strongly oppose the National Assembly’s push for holdback legalization, as it infringes on consumer rights and weakens market competition. The bill must be thoroughly reconsidered to reflect changing viewing habits and platform ecosystems.”
