Future of Daejong Film Awards uncertain as nonprofit host goes into liquidation

The 59th Daejong International Film Awards was held at the Gyeonggi Arts Center in Suwon, Gyeonggi, on Nov. 15, 2023. [DAEJONG INTERNATIONAL FILM AWARDS]
One of Korea’s largest film award ceremonies, the Daejong International Film Awards, faces the cutting room floor as its host was declared bankrupt and is now entering a liquidation process.

The Motion Picture Association of Korea, host of the Daejong International Film Awards, entered bankruptcy last December and later applied for a rehabilitation procedure in February in order to resolve its financial turmoil. However, a court declared the association bankrupt again last week.

“The appeal hearing to annul the bankruptcy declaration was rejected on Oct. 24,” the association said in a statement on Thursday.

“We had worked hard for nine months to revive the organization after it was declared bankrupt by the court last December. However, due to the main creditors’ refusal to approve the rehabilitation plan, it was inevitable to face bankruptcy. We will now proceed to a liquidation stage, accepting the court’s rejection.”

During the rehabilitation procedure, the association tried to gain support from creditors but failed, leading it to ultimately decide to withdraw, according to reports.

The association had over 800 million won ($580,000) in debt, including those found during the rehabilitation process, an amount that the court saw as difficult for the association to repay.

Several seats were empty in the main hall of the Gyeonggi Arts Center in Suwon, Gyeonggi, where the 59th Daejong International Film Awards was held on Nov.15 ,2023. [DAEJONG INTERNATIONAL FILM AWARDS]
"It was challenging for a nonprofit organization that mostly relies on membership fees and donations to manage debt exceeding 800 million won,” the association said. “We believe the court took these circumstances into account when issuing its rejection.”

However, the association showed a strong will to continue the awards ceremony, saying, “As long as filmmakers agree, the association and the Daejong International Film Awards will continue to exist and move forward.”

It also added that it will continue its legacy as a film organization, though its history as a nonprofit organization ends here.

“Though it may take some time, the Motion Picture Association of Korea will conclude its 63-year history as a nonprofit organization through the liquidation process,” it said.

"Although the association will exist as a legal entity until the liquidation process is fully completed, it will transform into a film organization rather than a nonprofit corporation for its activities.”

Lee Jang-ho, the head of the Daejong International Film Awards, speaks during a press conference in Jongno District, central Seoul, on June 27. [YONHAP]
In June, the association held a press conference explaining its current situation and its enthusiasm to continue the awards ceremony regardless of its financial dispute, with its president, Yang Yun-ho, saying that the awards are “a valuable legacy that should be handed down to the next generation.”

Details on how the association plans to continue to host and organize the Daejong awards, with such issues as manpower or the budget, were not disclosed.

The association emphasized during the conference in June its efforts to restore its past glory and rectify its issues.

The Daejong International Film Awards, launched in 1962, is one of the three biggest film awards ceremonies in Korea, along with the Baeksang Arts Awards and the Blue Dragon Film Awards, and is the oldest of the three.

Despite the awards' long history, it has lost its former glory throughout recent years.

It has received criticism for controversial moves, such as threatening to withhold awards from those who do not physically attend as well as the use of an assessment system that industry insiders have characterized as “unfair.” As a result, nearly half of last year's invitees were absent from the event.