This study focuses on the development and characteristics of the industrial cluster in the motion pictures sector. Comparison of existing clusters in Hollywood and Seoul shows the weakness of the latter and indicate ways to improve competitiveness. An industrial cluster is a concentrated, highly competitive business environment that results in synergy; vision providers point the way, systems organizers keep work on track while specialized suppliers carry out the necessary skilled functions. A developed movie industry cluster is found in Hollywood: business mindful visionaries offer project proposals, stabilized organizations distribute the plans among agents chosen for fitness to carry out the tasks while keeping the project on track, and proven agents carry out their specified tasks. The quality of the end product is a testimony to the excellence of the individual agents involved and to that of the system, which has a built in arm for renewal; schools and training centers that act as centers for networking, technological advancement and record keeping. The Hollywood cluster has consistently produced competitive products. Successful rivalry is so rare that the Korean film industry's 50% share of the local market made headlines. While localized excellence and passion have brought about Kangnam's recent accomplishments, more stable and repeatable success may depend the creation of a stronger industrial cluster. The Kangnam cluster can be made stronger; arm schools with advanced facilities and leading professionals, train students to produce high quality work, make sure that these students feed back into the system to create profit for the production companies and return some profit into the schools. The trigger for change is investment and the government can make that happen.