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FTC reviewing merger of Korea's 2nd, 3rd largest cinema operators

Published: 10 Jul. 2025, 15:56 Updated: 10 Jul. 2025, 18:04

A moveigoer buys tickets at kiosks set up at a large cinema in downtown Seoul on March 19. [NEWS1]

Korea's antitrust regulator said Thursday it is reviewing the planned merger between the country's second- and third-largest theater chains.

Media giant JoongAng Group and retail conglomerate Lotte Group submitted a preliminary consultation request to the Fair Trade Commission (FTC) last month after they signed a memorandum of understanding in May to merge their respective cinema chains —Megabox and Lotte Cinema.

The FTC's preliminary consultation system was introduced last year to expedite mergers between companies.

If completed, the merger is expected to reshape the domestic cinema industry by creating a two-horse race between CGV — the current market leader — and the new entity.

According to the Korean Film Council, CGV operated 1,346 screens nationwide in 2024, the most among the country's cinema chains. Lotte Cinema had 915 screens, followed by Megabox with 767.

If the merger goes through, the number of screens operated by the new entity will surpass that of CGV.

Industry watchers are also closely eyeing the potential integration of Lotte Entertainment and PlusM Entertainment. Alongside CJ ENM, Showbox and NEW, both are key players in Korea's film distribution sector.

"This is the first preliminary consultation case on a merger between conglomerates," the FTC said. "We will closely examine the impact of the merger on consumers and whether it may interfere with fair competition."

Yonhap