Megabox, Lotte Cultureworks announce plans to invest in revitalizing Korea's film industry

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Megabox, Lotte Cultureworks announce plans to invest in revitalizing Korea's film industry

Published: 22 Jul. 2025, 17:00 Updated: 22 Jul. 2025, 19:08

Audio report: written by reporters, read by AI

The logos for Megabox, top, and Lotte Cinema [MEGABOX JOONGANG, LOTTE CULTUREWORKS]

Megabox JoongAng and Lotte Cultureworks plan to make significant investments aimed at revitalizing Korea’s struggling film industry, the two theater chains announced on Tuesday.

The two companies signed a memorandum of understanding in May to merge with the stated goal of “strengthening the competitiveness and ensuring the sustainability of the theater and film businesses.”

In a joint press release, the companies said they intend to secure funding through financial restructuring and external investment following the merger, and will focus those resources on enhancing theater infrastructure and content competitiveness.

Korea’s film industry has been in a prolonged slump due to a combination of factors including the rapid expansion of global over-the-top platforms, reduced investment and declining theater attendance. The companies said they aim to improve profitability through new capital inflows, streamlined operations and marketing synergies brought about by the merger.

The secured funds will be used to strengthen financial structure, enhance customer services and expand investment in content. Priority will be placed on improving in-theater services to attract moviegoers back to cinemas. Plans include expanding premium screening rooms and enhancing the overall moviegoing experience.

Currently, Megabox, an affiliate of the Korea JoongAng Daily, operates specialty formats such as Dolby Cinema and MX4D, while Lotte Cultureworks offers venues like Super Plex and Charlotte theaters. The two companies plan to expand these premium screens beyond the Seoul metropolitan area to improve regional access to cultural experiences.

They also pledged to contribute to a more vibrant content creation ecosystem. The merger is expected to provide creators with more production opportunities while fostering emerging talent and discovering competitive Korean content.

The companies plan to continuously generate high-quality content and reinvest the proceeds into the broader Korean film industry to build a sustainable cycle of growth.

“The launch of the merged entity is expected to become a turning point that breathes new life into Korea’s long-stagnant film industry,” said a JoongAng Group official. “We aim to create more opportunities for creators and offer audiences a broader range of works, revitalizing theater attendance through our joint efforts.”

The official added that the companies are “faithfully undergoing all necessary procedures,” from pre-consultations with the Fair Trade Commission to the formal corporate merger filing.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY JUNG HYUN-MOK [[email protected]]