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3mo ago

South Korea’s Largest Theater Chain to Emerge from Megabox-Lotte Cinema Merger

JoongAng Group and Lotte Group sign MOU to create a 1,682-screen joint venture, pending regulatory approval and new investment.

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This image shows the logos of Lotte Cultureworks (top) and Megabox JoongAng Inc., as provided by the respective companies. (PHOTO NOT FOR SALE) (Yonhap)

Overview

  • JoongAng Group and Lotte Group have signed a memorandum of understanding to merge Megabox JoongAng Inc. and Lotte Cultureworks into a co-managed joint venture.
  • The combined entity will operate 1,682 screens, surpassing current market leader CGV, which has 1,346 screens nationwide.
  • The merger aims to drive sustainable growth, improve financial soundness, and enhance customer services in response to post-pandemic challenges and streaming competition.
  • Regulatory approval from South Korea’s Fair Trade Commission and the attraction of new investment are key next steps for the merger process.
  • Industry experts are watching closely for potential integration of the companies’ film distribution arms, Lotte Entertainment and PlusM Entertainment, which could reshape the sector.