In the auditorium-like theatre a third of the seats are empty. It is opening day at Busan International Film Festival (BIFF) but rather than excitement, angst hangs in the air.

"I expected it to be much worse," said Joon Min-ji, a university student who came to enjoy BIFF with her friends.

"Last year, there was more of a festival atmosphere and I'm sad that's missing."

The disappointment is echoed by others in the audience as many are still unsure where the festival stands with its ongoing controversy over artistic freedom.

Still, most are staying hopeful the festival will return to its former glory, back to normal again.

Stars, directors and fans gather for the 21st annual Busan International Film Festival. ( Supplied: BIFF )

For the past two years, Asia's premier film festival has been in a fierce battle with the Busan metropolitan Government over its decision to screen a documentary that the Busan city mayor and former BIFF chairman adamantly opposed.

The contentious film, The Diving Bell, criticized the South Korean Government's rescue efforts in the aftermath of the Sewol Ferry disaster, which took the lives of more than 300, most of whom were high school students.

The resolve of then-festival director Lee Yong-kwan, however, took a toll on the event when the Busan metropolitan Government, which funds about half of BIFF's budget, slashed its contributions by almost 50 per cent, from $1.7 million in 2014 to $963,000 in 2015.

In addition, there were unprecedented audits and probes targeting organizing committee members including Lee, who was eventually forced to resign in the face of embezzlement allegations.

Korean starlet and Busan International Film Festival host Han Hyo-joo graces the red carpet. ( Supplied: BIFF )

The controversy worsened last year after state support for the festival was also cut through the Korean Film Council.

These actions were seen as "political retaliation" against BIFF and a way to impose censorship on the country's booming film industry.

To fight back, a coalition of nine major South Korean film organizations, known as the Korean Film Groups' Emergency Committee, declared a boycott of the annual event to keep BIFF a safe space for creative independence, as it has strived to be since its inception in 1996.

But they were not alone in their fight for freedom of speech, as campaigns supporting an autonomous BIFF quickly spread online, with netizens and other actors and directors posting tweets and pictures with hashtags like #ISUPPORTBIFF.

Train to Busan star Kim Ui-Seong holds #ISUPPORTBIFF sign for the festival's autonomy. ( Supplied: BIFF )

In July, Korea's culture ministry finally caved to protesters' demands and amended the festival's bylaws to guarantee artistic freedom.

The victory, however, did not exonerate former director Lee Yong-kwan and market head Jay Jeon.

Despite several of the nine organizations recommitting to the festival, four major groups remained undeterred in their struggle for a completely independent BIFF.

"The reason we are continuing the boycott is very clear. The Government tried to control the programming of the festival and dictate which movies could be shown or not. We are demonstrating against those restrictions," said Ahn Young-jin of the Producers' Guild of Korea.

"Because they didn't heed their demands, Lee Yong-kwan and others on the organizing committee are being punished and there are no efforts to resolve that situation."

In regards to the ongoing boycott, BIFF told ABC News that they respect those groups' decision.

"We think [the boycott] belongs to freedom of expression. We think that supporting BIFF or boycotting it has the same intention to protecting the autonomy and independence of the festival," said a spokesperson.

BIFF's troubles are seen as only part of a wider issue of the assailment on freedom of speech in South Korea.

Encroachment on artistic freedom has worsened in recent years with artists getting arrested or slapped with fines if their work shows satire or criticism against the current administration.

South Korea's biggest contemporary art institution, the National Museum of Modern Contemporary Art (MMCA), has also been accused of "restricting freedoms" after the culture ministry chose a new director who had been mired by censorship allegations the year prior.

"The reason the Government tries to control the arts is to strengthen authoritarianism and make democracy less active," said Movie Director and Sejong University Professor Lee Jeong-guk, when asked about BIFF's strife and the current art climate in South Korea.

It is widely considered that Korean cinema's darkest era was in the 70s, under former president Chung-hee, who led with dictatorial rule.

"The Government is trying to control the arts so they can oppress those who criticize them and block negative messages," he added.

Busan International Film Festival Village destroyed by Typhoon Chaba. ( Supplied: Joseph Kim )

To add insult to injury, BIFF's outdoor venue at Haeundae beach was completely demolished this year by Typhoon Chaba, which hit a day before the event, and left at least seven dead in South Korea.

Perhaps a testament to its resiliency, BIFF's signature programming overall, remains largely unchanged from previous years and will be screening roughly 300 films from 69 countries, many of which are world premieres.

Emphasizing "Solidarity for Asian Cinema," the event seems to be focusing on films that have been banned from different countries due to political reasons.

The festival is also presenting a panel of Asia's top directors discussing solidarity in Asian filmmaking, featuring up-and-coming Asian directors.

While attention for international political movies is drummed up, some are left wondering if there could have been more domestic movies that touched on sociopolitical issues.