Since culture has been considered as a pillar of national identity, prevailing ideas for cultural industries and policies are closely linked to protectionism and anti‐globalization. However, these moves are derived from a narrow understanding of globalization. In this regard, this paper deals with this fundamental question on how to understand globalization in cultural industries with a focus on the film sector. For this research question, this paper identified inbound and outbound globalizations. Inbound globalization happens domestically with the interconnectedness among domestic and international factors whereas outbound globalization occurs overseas. These two types of globalizations can be undertaken both actively and passively depending on how to utilize (dis)advantages. Based on such an analysis, this paper argues that government policies should be set up to maximize benefits from both inbound and outbound globalizations in order to enhance the international competitiveness of the film industry while strengthening its industrial base.