The foundation of Cho-sun Kinema Company was based on the commercial success of Cho-sun films that started from the hit of 〈The Story of Chu-hyang〉. In the early history of Korean films, the foundation of Cho-sun Kinema Company built a coexisting system between Seoul and Busan.
According to historical records, the foundation capital and the confirmed address have been proved to be as follows; ‘a film production established on July 11<SUP>th</SUP> 1924 at 19 beon-ji, 5 jeong-mok, Busan bon-jeong with the capital of 75,000won and the money due of 18,750.’ Based on my own investigation and an old map, Cho-sun Kinema Company was possibly established at the current address of 19 beon-ji, 5 ga, Jung-gu, Dong-gwang-do, which was known as 5-19, Yeong-ju-dong earlier. The building belonged to Russian consulate that had moved in 1912. Later, the building was used for Russian consulate, Cho-sun Kinema Company, Korea-America club before it was totally estructed during the fire occurred at the train station nearby on November 27<SUP>th</SUP>1953.
The reasons why Yoon Baek-nam’s party withdrew from the institute was firstly because they took the responsibility for the box-office failure of films. The second theory is related to conflicts between Cho-sun movie filmmakers and inlanders. The conflicts were made due to habitual sexual harassments of Takasa Ganjou, the manager of Cho-sun Kinema Company, on Korean actresses. The third reason was the passion for Cho-sun’s films. Oral testimonies and related documents show that, on the surface, the reason why Cho-sun’s filmmakers left for Seoul was the responsibility about the failure of film 〈Woon-yeong jeon; The Story of Woon-yeong〉. But the true reason was the desire that Yoon Baek-nam’s party had about producing Cho-sun’s own films. Therefore, the direct cause of the withdrawal was emotional conflicts between inlanders and Cho-sun people. The reason for the slack and collapse of Cho-sun Kinema Company was the lack of working crew caused by the Cho-sun people’s relocation to Seoul. The next reason was financial difficulties imposed by box-office failures. Thirdly, the company failed to overcome the poor distribution environment.
Cho-sun Kinema Company has a historical significance because it was a symbolic incident showing the movement of cinematic power from Busan to Seoul, and it also represented the poor environment of the early Korean film industry.