7 MARTINDALE CENTER FOR THE STUDY OF PRIVATE ENTERPRISE A similar theme appears in Incantation, where the central deity’s face is covered by a cloth with an inscription stating, “Fortune and misfortune depend on each other; life and death depend on the name.” The film repeatedly features this incantation spoken in Taiwanese dialect, further emphasizing the island’s internal linguistic and cultural divisions. Incantation uses horror to engage with Taiwan’s contested identity, where name, much like sovereignty, determines both recognition and survival. Comparisons To further contextualize the distinct appeal of Taiwanese horror films, a comparative analysis of foreign horror films in Taiwan and horror in neighboring East Asian markets is essential. Foreign horror films in Taiwan According to the Taiwan Creative Content Agency (2023), Taiwanese films constituted an average of approximately 9% of all films screened in Taiwan annually from 2018 to 2022. During the same period, the average share of domestic films in Taiwan’s box office revenue was 13.3%, with no more than three domestic films appearing in the top 10 highest-grossing films in any given year. As discussed previously, horror films have consistently occupied at least one of these limited spots. The same cannot be said for foreign horror in Taiwan. Though specific data on the share of horror films in foreign productions screened in Taiwan are limited, in North America—the largest source of foreign films imported to Taiwan—horror accounts for only 6.1% of domestic production (The Numbers, 2025). However, the absence of foreign horror from Taiwan’s top-grossing films cannot be explained by production share alone. Even when foreign horror films are screened in Taiwan, they tend to follow different thematic and narrative conventions. Many Western and East Asian horror films released in Taiwan rely on psychological horror rooted in individual trauma rather than the folklore-driven, culturally embedded anxieties that characterize Taiwanese horror. While certain themes are prominent both in foreign and domestic horror, Taiwanese horror ties these elements to local folklore and historical events, making them more resonant with domestic audiences. This divergence in content may contribute to foreign horror films’ weak performance in the domestic market. Horror in East Asia Across East Asia, horror occupies a notable role in domestic film industries and enjoys cultural significance. Comparing Taiwanese horror to that of Japan and South Korea—two neighboring markets with similar economies and well-established film industries—highlights its distinct position both in terms of its reception among domestic audiences and its thematic tendencies. Japan has a long tradition of horror cinema, but its popularity with domestic audiences has waned in recent years. Since 2020, only one horror film has appeared among the annual top 10 highest-grossing domestic films (Motion Picture Producers…, 2024), aligning with a broader trend showing that horror is significantly less popular in Japan compared to the global average (Follows & Nash, 2021). This trend suggests that the genre may not resonate strongly with Japanese audiences, potentially because its core themes lack cultural urgency. Japanese horror films explore themes of individualism and isolation, with supernatural threats serving to heighten feelings of loneliness and anxiety that permeate modern life in Japan (Ladd, 2018; McRoy, 2008). While Japanese horror uses supernatural threats to examine such broad concerns like the alienation brought on by modernization and technological advancement, Taiwanese horror is more directly tied to the island’s immediate sociopolitical anxieties. This difference is especially evident in their portrayal of shared identity. Japanese horror rarely engages with questions of identity, a defining characteristic of Taiwanese horror, a difference that may stem from Japan’s well-established national identity, which has not faced recent threats of erasure or subjugation, unlike Taiwan, whose history of colonization and present-day contested sovereignty continue to shape its narratives. The emphasis on identity extends to the use of folklore, from which both genres draw heavily. Japanese horror films frequently feature onryō, vengeful spirits that are a familiar and integral part of Japanese culture (Paciorek, 2018). In contrast, Taiwanese horror frequently incorporates lesser known, highly localized folklore, using it as both a narrative device and a means of cultural preservation. By grounding its horror in these traditions, Taiwanese cinema reinforces its distinct heritage and offers audiences stories that feel immediate and personally relevant. This localized approach, and its engagement with pressing societal anxieties, may explain the enduring appeal of Taiwanese horror among domestic audiences. Moving to South Korea, that country is one of the largest markets for horror globally, with strong domestic and international interest in the genre (Follows & Nash, 2021). Since 2020, one horror film has made the list of top 10 highest-grossing films each year (Korean
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