Along the lines of Jaime's post on the FTA and nationalism, here is a short article from last year regarding the decision to reduce the number of days cinemas must reserve for domestic films from 146 days to 73.
Personally, I think import quotas are a travesty for various macroeconomic reasons. I guess the government viewed the Korean film industry as an infant industry that needed protection before it could compete with foreign films (similar to the auto industry). But I think the film quota touches more strongly on the idea of preventing cultural imperialism - the notion that Koreans must fight against America's plan to replace Korean culture with American culture (similar to Japan during colonization).
While every country, including the U.S., is guilty of draconian protectionist measures, Korea of all countries should understand the importance of free trade in the arts. It has enjoyed enormous benefits from the popularity of Korean music and drams in other Asian countries due to the Hallyu phenomenon. What's good for the goose is good for the gander, and Korea should promote free exchange of the arts.