South Korean Authorities Accuse 323 Films of Box Office Fraud: Collusion between Officials and Production Companies

According to a report from Variety, South Korean authorities announced on Wednesday that they have uncovered evidence of exaggerated box office performances for 323 films over the past five years.

The Seoul Metropolitan Police Agency stated that they have transferred 69 individuals involved in the case, including employees from major theater chains and 24 film distribution companies, to the prosecution. Prosecutors will decide whether to proceed with further investigation into the matter.

The anti-corruption and public crime investigation unit of the police began looking into the film industry earlier this year and conducted raids in June on the three major cinema operators in the country: CJ CGV, Megabox, and Lotte Cinema. In their latest update, investigators mentioned that a total of 98 film distributors and 462 films were examined during the course of the investigation.

Allegedly, implicated Korean officials collaborated with film distributors and intentionally inflated ticket sales figures from March 2018 to June of this year. The goal was to boost the box office rankings of movies screened in their theaters by submitting exaggerated data to the Korean Film Council. Films with falsely reported box office numbers included the documentary "You Are Cao Guo," starring former Minister of Justice of South Korea, and the action-thriller "Profound Declaration."

In the short term, inflating box office figures could generate greater interest among audiences, attracting more theaters to screen the films and potentially turning fabricated success into genuine achievement. Looking ahead, inflated box office numbers could also lead to higher licensing fees when these movies are eventually featured on television and streaming platforms.