This report analyzes the current situation and problems of the film industry in South Korea in regard to the market oligopoly. It also presents proposals for improvement that film industry can continue to develop only when diversity is guaranteed in film industry where diverse films can be produced and presented to audiences. The results of survey on the current state of the film industry in Korea shows that a few large scale operators dominate market over the entire areas except investment and production. Particularly， in the area of distribution and screening， these large-scale operators show the sign of vertical-systematization. This report points out three main problems in the structure of the Korean film industry. First， the enterprises in a dominant position abuse their superior position. Second， small and medium-sized companies fail to obtain enough earnings for undertaking the next project and the profit from film industry is concentrated on the few large enterprises. Lastly， as multiplexes decide to screen only small number of large-scale commercial movies for the profit maximization， consumer’s choice tends to be seriously restricted. Some argue that compulsive government intervention is necessary to resolve these problems and to promote diversity in the film industry. However， if compulsive government intervention is carried out， unexpected side effects can occur such as the increase of foreign films screening rate and the decrease in investment in Korean film industry. Therefore， this report suggests to fix the self-regulatory system and to build up the film industry eco-system in order to promote diversity in the film industry. More detail suggestions are as follows. (1) ensuring the effectiveness of the contract standard in the film industry， (2) utilizing crowdfunding as a measure to activate the funding and marketing of small and medium-sized film companies， (3) developing effective incentives to consume and screen independent and art films， (4) promoting subsidiary markets in film industry in order to diversify revenue structure in small and medium-sized film companies.