Audience and Government Support Completely Absent... CGV Facing Double Hardships

Even Distributors Delay Film Releases, Worsening Management... The Backbone of Korean Cinema Shakes

On the 12th, a movie theater in downtown Seoul was quiet. According to the Korea Film Council's Integrated Computer Network for Movie Theater Tickets, the number of visitors to movie theaters the previous day was 10,776. This is the lowest figure since the council began official statistics in 2004. Photo by Mun Ho-nam munonam@

CGV, the largest multiplex in South Korea, is facing difficulties. Due to the spread of the novel coronavirus (COVID-19), the number of viewers has drastically decreased, leading to a significant crisis. The number of visitors to movie theaters this month was 349,612 as of the 14th, averaging less than 25,000 per day. The company has reached a point where it cannot bear the fixed monthly rent of 17 billion KRW. Currently, the rent owed amounts to 40 billion KRW.

In fact, CGV has not been able to pay rent since November last year. It is under constant pressure from asset management companies that own 50 directly operated stores. Recently, requests for rent reductions were rejected. With no government support such as tax benefits, there was no choice but to appeal the dire situation. A CGV official revealed, "Without government support or legal amendments, there are limits to resolving this through dialogue with landlords." CGV’s comprehensive income exceeds 100 million KRW, and its converted deposit exceeds 900 million KRW, so it does not qualify for benefits such as 'Good Landlord' or the 'Commercial Building Lease Protection Act.' Support from related organizations like the Korean Film Council is virtually nonexistent.

On the 12th, a movie theater in downtown Seoul was deserted. According to the Korea Film Council's integrated ticketing system, the number of moviegoers who visited theaters the previous day was 10,776. This is the lowest figure since the council began official statistics in 2004. Photo by Mun Honam munonam@

CGV’s operating loss from the first to third quarter last year was 299 billion KRW, with a net loss of 425 billion KRW. Various drastic measures such as attracting investment, restructuring, and borrowing have been attempted, but with little effect. Instead, management has worsened, and within three years, CGV plans to give up 35 to 40 of its 119 directly operated stores. The number of temporarily closed branches is also increasing.

To break this vicious cycle, new Korean films must be screened. Among the top 10 box office films on the 14th, the only Korean film was 'Dogul' (473 viewers), released on November 4 last year. As COVID-19 spreads rapidly, distributors continue to postpone film releases. Multiplexes like CGV plan to meet with multiple distributors next week to encourage releases. Additionally, through the Korea Association of Multiplex Theaters, they will request the Korea Disease Control and Prevention Agency to adjust seat distancing and lift restrictions on closing hours.

This content was produced with the assistance of AI translation services.