Chapter 373: Korea CJ

Two days later in the afternoon, Lee Mi-Kyung visited Arthur in the downtown Manhattan headquarters of MGM.

With a population of 45 million and a per capita GDP exceeding $10,000, South Korea was a developed nation in Asia. 

Therefore, the market was quite substantial. Since the South Korean film market had a late start, it used to be dominated by Hong Kong films, and now both Hong Kong films and Hollywood films held the market.

Even though South Korea had a film import quota system that mandated domestic films to be shown for 146 days a year in theaters.

Previously, due to wars and various policies, the film industry's development had been extremely slow. It wasn't until the late '80s that the Film Act was revised, gradually opening up the market.

The Film Act abolished the film censorship system and replaced it with a review system under the Public Performance Ethics Committee.

"Compared to the censorship system, the review system is slightly better. But everyone knows that a film classification system is the real driver of development," Arthur said to Lee Mi-Kyung as he sat on the sofa.

Whether in Europe, Hollywood, Japan, or Hong Kong, the film classification system led to significant development!

Lee Mi-Kyung nodded, "Yes, the cultural sector has been striving for the implementation of a film classification system, and the government will also vigorously promote the cultural industry.

Believe me, it won't be long before the much-anticipated film classification system is implemented, and when that happens, the film industry will transition to market competition, leading to rapid diversification and commercialization."

"At the beginning of this year, representatives from several countries signed a new trade agreement in Marrakesh, Morocco, and established the World Trade Organization (WTO)," Arthur smiled. "Opening up film imports is a key condition for joining the WTO. It's no wonder South Korea is advocating for a culture-centered nation. Samsung, as the capital dominator in South Korea, must have an accurate grasp of policies. So, is CJ really determined to enter the film industry?"

Lee Mi-Kyung nodded earnestly, "Yes, CJ is determined to enter the entertainment industry and is in the process of completely separating from Samsung. CJ has not been in a good position within Samsung.

My mother has decided to use shares in Samsung Fire & Marine Insurance to exchange for the remaining shares of CJ, and then CJ will go public independently!

This investment in DreamWorks, founded by Steven Spielberg and others, is to acquire the rights to DreamWorks' films for South Korea, mainland China, and Hong Kong.

Simultaneously, CJ will also build cinemas and film companies in South Korea, entering the local film production field."

Arthur remained indifferent regarding CJ's local film production in South Korea. "I'm not concerned about CJ and DreamWorks' collaboration. Galaxy MGM is not interested in focusing on a company that has yet to go public.

You probably guessed why we are meeting today. The South Korean market is also important to Galaxy."

Lee Mi-Kyung understood, "Please give CJ a chance, Mr. Smith. Galaxy MGM's projects can be distributed by CJ. We have significant influence in South Korea.

Advertising channels, cinema promotion, and even video and television broadcasting - CJ can handle all these well. If needed, CJ can also invest!"

For Asian film companies to enter the international market, they must first pay their dues. This is a prerequisite for them to learn the ropes.

Arthur looked at Lee Mi-Kyung, "MGM International will establish a joint venture with CJ in South Korea. This joint venture will exclusively promote Galaxy MGM films in South Korea, including theaters, videos, and television on-demand. The specific cooperation details will be handled by our subordinates."

Arthur wouldn't waste his time on a South Korean film market. This matter was crucial for CJ, but for Galaxy MGM, it was a trivial matter.

"Understood, I will make the necessary arrangements," Lee Mi-Kyung was very hopeful about collaborating with Galaxy MGM.

Galaxy's reputation was stellar now!

While DreamWorks was still in the preparation stage, with no release date for its first project, Galaxy's current strength was visible for all to see.

"Mr. Smith, have you ever been to South Korea?"

Lee Mi-Kyung suddenly asked.

Arthur shook his head, "Not yet."

"If you have the time, Mr. Smith, you should visit South Korea to survey the market."

"There will be opportunities, don't worry," Arthur responded with a smile.

During the 1997 financial crisis, South Korea would be on the brink of bankruptcy. As a member of Wall Street capital, Arthur wouldn't miss the chance to profit from Korea.

After Lee Mi-Kyung left, Anna Walker came into Arthur's office, "Is it true that Galaxy will cooperate with CJ in South Korea?"

"Of course, despite CJ being part of the Samsung family and developing well even though they lack experience, they surely aren't short of money," Arthur smirked. "But we at Galaxy MGM are not DreamWorks. When negotiating with CJ, limit the distribution rights to just South Korea.

Oh, by the way, what's the budget for the film adaptation of Jane Austen's Sense and Sensibility?"

Anna Walker thought for a moment, "Around $16 million. Hugh Grant previously agreed with the producer to join the film at a reduced fee because he loves the novel."

"The lead actress is Emma Thompson, right?"

Anna Walker nodded. At last year's Oscars, Emma Thompson had won the Best Actress Award for Howards End.

Sense and Sensibility's screenplay was also adapted by Emma Thompson. Without her, newcomer director Ang Lee wouldn't be able to secure $16 million for such an art film.

"And My Best Friend's Wedding?"

"Production started last week with a budget of $30 million."

"Alright," Arthur said as he stood up. "Keep an eye on the progress of GoldenEye. I heard Albert Broccoli's health has deteriorated. Is it true his son and daughter are now more involved in the production?"

"Yes, Mr. Broccoli has been hospitalized and is in poor health, unable to further develop GoldenEye."

The next day, Arthur left New York to visit Vivian Chow in Toronto, where she had just completed her arrangements to attend the University of Toronto's St. George campus.

Earlier this year in Las Vegas, Vivian mentioned she was planning to continue her education. Arthur had specially arranged art courses for her at the University of Toronto.

*****

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