JoongAng Holdings, the parent company of Megabox, announced on Thursday that it had signed a memorandum of understanding (MOU) with Lotte Group to combine their film-related subsidiaries: Megabox JoongAng and Lotte Cultureworks, which oversees Lotte Cinema.
The move marks one of the most significant realignments in South Korea’s media and entertainment sector in years.
The newly formed joint venture will be jointly managed by both conglomerates, pending a business combination review by the Fair Trade Commission. Further details of the merger are expected to emerge in the coming months, following additional negotiations and regulatory scrutiny.
The merger, if finalized, would directly challenge the country’s largest cinema chain, CJ CGV, altering long-established dynamics in the competitive multiplex market.
According to the Korean Film Council, CJ CGV operated 1,346 screens nationwide in 2024, making it the country’s dominant exhibitor. Lotte Cinema managed 915 screens, while Megabox operated 767. The merger would give the new entity control of 1,682 screens — overtaking CGV in sheer scale.
The agreement also extends beyond exhibition, encompassing a merger of the two groups’ film distribution arms: Lotte Entertainment, which backed major hits including the Along With the Gods series and Hansan: Rising Dragon, and Plus M Entertainment, the distributor behind 12.12: The Day and The Roundup franchise.
In a joint statement, both companies framed the merger as a bid to revitalize South Korea’s film industry, which has struggled to regain momentum following the COVID-19 pandemic.
“This MOU is intended to combine the strengths of both companies to improve competitiveness, enhance financial stability, and provide differentiated customer experiences,” a Lotte Group spokesperson said.
A representative from JoongAng Group added that the partnership would focus on expanding content diversity, investing in domestic film production, and improving audience services.
“Our goal is to establish a sustainable business environment by securing competitive content, creating premium viewing experiences, and fostering stability in the Korean film market.”
The companies also signaled plans to expand high-end cinema formats, such as Megabox’s Dolby Cinema and Lotte Cinema’s Superplex, as part of their strategy to draw audiences back to theaters.
reporter
Kim Dong-young
davekim0807@ajupress.com
Copyright ⓒ Aju Press All rights reserved.
View more comments