October 1, 2025
SEOUL – US President Donald Trump announced Sunday via Truth Social that he would impose a 100 percent tariff on all movies produced outside the United States, making his second such declaration in five months.
The statement came without an implementation timeline or enforcement mechanism.
Without providing evidence, Trump claimed that foreign countries were “stealing” American film production through tax incentives. He cited California as being “particularly hard hit.”
The announcement left more questions than answers.
It remains unclear how such a tariff would work in practice. Would it apply to streaming content or just theatrical releases? How would authorities calculate the levy on intellectual property rather than physical goods? Sunday’s announcement also provided no definition of what constitutes a foreign-made film.
In Seoul’s entertainment districts, where production companies have built global franchises from Korean TV dramas and films, the response was notably muted. Movie studio and streaming executives who spoke with The Korea Herald expressed confusion, but little concern. Most said they would wait for concrete details before taking any action.
“We haven’t felt any real change between May and now,” said an executive at a major Korean entertainment company, speaking on condition of anonymity, referring to the first time Trump threatened 100 percent tariffs on foreign-made films. “Until we see actual implementation and detailed guidelines, we’re viewing this similarly to the previous announcement.”
The numbers may partially explain the calm. Korea’s film industry has minimal exposure to the US market — total revenue from Korean films reached approximately 1.4 trillion won ($1.05 billion) in 2024, but overseas exports account for just 4 percent of that figure at 57.1 billion won, according to Korean Film Council data. And US exports make up only a tenth of that.
Few Korean films target the American market directly. Recent English-language productions shot in Korea include “The Hole,” starring Theo James and Hoyeon, and “Pig Village,” featuring Don Lee, known locally as Ma Dong-seok. But these represent a tiny fraction of Korea’s film output.
An official at a local production company noted that Korean films primarily generate revenue domestically. “If this were seriously affecting our overseas sales or support systems, we would expect government agencies to initiate industry consultations,” the official said, requesting anonymity. “That hasn’t occurred.”
An industry executive who produces content for both Korean and American markets offered a more direct assessment, speaking on condition of anonymity due to the sensitivity of ongoing projects.
“Korean movies don’t travel outside their intended domestic audience,” the executive said. “A 100 percent tariff may mean a few million dollars less. It’s not a big industry.”
The executive, who regularly works between Seoul and Los Angeles, said American colleagues aren’t taking the threat too seriously either.
“My Korean counterparts tend to take Trump’s proclamations more seriously. They ask what’s really happening. I tell them it’s just noise — don’t take it seriously.”
While theatrical releases from Korea rarely reach American screens, Korean productions on global streaming platforms have been hitting US markets in increasing numbers. Trump’s proposed 100 percent tariffs on foreign-made films could spell trouble for streaming services producing original content worldwide.
Netflix’s latest Korean action thriller “Mantis,” which debuted on the platform Friday, quickly climbed into the US top 10, joining a growing roster of original productions finding American audiences through streaming.
But industry experts question whether tariffs can even apply to content that doesn’t physically cross borders. Unlike cars or steel, films on streaming platforms are services uploaded digitally, not tangible goods shipped in containers.
That uncertainty led stocks for streaming companies including Netflix and Disney to dip briefly Monday morning before bouncing back. For now, investors and industry insiders alike remain in a wait-and-see mode.
An official at a global streaming platform operating in Korea highlighted the complexity of the matter: “Content production isn’t like manufacturing where you can easily determine (country of) origin. If the production company is American but filming happens abroad, what makes it foreign? These are complicated issues that can’t be clearly defined.”
“Wouldn’t it be a bigger problem if companies changed their entire strategy based on one tweet?” the official asked. “This seems more like political messaging than actual policy.”
But beneath the surface calm is an acknowledgment that Trump’s threat — if ever implemented — could disrupt a growing sector of Korea’s entertainment economy: location services for international productions.
In recent years, Korea has transformed itself into an attractive filming destination for Hollywood. The streets of Seoul have doubled for futuristic cityscapes, its countryside has stood in for various Asian locales and its film crews have earned reputations for efficiency and technical excellence.
Netflix teen romance “XO, Kitty” filmed both its seasons entirely in Korea, transforming Seoul’s trendy Seongsu-dong district and Han River parks into backdrops for American storytelling. “The Recruit” brought its spy thriller action to Seoul’s gleaming skyscrapers and traditional markets. Marvel’s “Black Panther” used Busan’s Gwangan Bridge as the setting for a spectacular chase sequence that audiences worldwide remember.
Korea offers foreign productions cash rebates of 20 to 30 percent on local spending, though caps may range from 200 million to 400 million won per project. That’s modest compared to major filming hubs like the UK, Canada and Australia, which offer rebates up to 40 percent or more with much larger budget limits. Japan recently entered the competition with rebates up to 1 billion yen ($6.75 million) per project.
Still, Seoul received 632 applications from international productions in 2022, providing subsidies to 268 projects, according to city government data.
“If these tariffs specifically target American productions filmed abroad, that could affect our production service companies,” said a senior official at the Korean Film Council, the government body under the Culture Ministry that oversees the country’s film industry. “But we’re still operating under the assumption that this is more political messaging than actual policy.”
The official noted that even after May’s threat, American productions continued to cross the ocean. Paramount is currently filming a K-pop-themed movie in Korea and has repeatedly inquired about location incentive budgets for next year.
“If they were genuinely concerned about tariffs, would they be moving forward so aggressively?” the official asked.
Hwang Seon-kwon has perhaps the best ground-level view. His company Nine Tailed Fox has facilitated major Hollywood shoots including “Avengers: Age of Ultron” and “Black Panther.”
On Tuesday, while managing a multinational production, Hwang took a brief call about Trump’s announcement.
“Nobody here is talking about tariffs,” he said, film set noise audible in the background. “They’re talking about tomorrow’s call time.”
Hwang posed the question troubling trade experts: “How do you put a tariff on a movie? With American financing, British actors, Korean crew and Canadian postproduction, what exactly are you taxing?”
“Trump makes a lot of announcements on Twitter,” Hwang said, using the platform’s former name. “Some become policy, most don’t. Until we see actual legislation with real details, we’re continuing business as usual.”
moonkihoon@heraldcorp.com
