Overview

• JoongAng Group and Lotte Group have signed an MOU to merge Megabox and Lotte Cinema into a co-managed joint venture.
• The merger will undergo Fair Trade Commission review and seek new investment to fund expansion and innovation.
• The combined entity will operate 1,682 screens, surpassing CGV's 1,346, reshaping competition in South Korea's cinema market.
• Both companies plan to cut costs, invest in premium theaters, and expand content offerings to compete with streaming platforms.
• Industry observers are watching for potential integration of the companies' film distribution arms, Lotte Entertainment and PlusM Entertainment.