The purpose of this study is to analyze the Korean film industry and investigate the new strategy for CJ Entertainment to gain competitive advantage in both domestic and global markets. Moreover, by examining the current status of the Korean film industry, this paper searched for methods of expansion into the foreign market as a growth strategy. Case studies have also been applied for further research. Porter's five forces model which analyzes the industry structure and the Diamond model which analyzes the industry competitiveness both forms the basis of this study.This paper reviewed how the four parts of the movie industry value chain, investment, production, distribution and screening, have changed along with the alterations in the environment. The results tell us that although the Korean film industry currently does not generate much profit, funds are being invested with respect to the future value. Especially, the major companies are taking the lead in the distribution and screening markets. Moreover, the rapid development of IT and the high quality of educated human resources are the core competency the Korean film industry has. In addition, lots of small-medium sized film-production firms can be the engine for the growth of the Korean film industry. Therefore, it is necessary to enter the global market with advantages of IT, human resource and plenty of film related firms.