JoongAng, Lotte Groups to Merge Cinema Chains, Forming South Korea's Largest Theater Operator
JoongAng Group and retail giant Lotte Group have signed a memorandum of understanding to merge their respective cinema chains — Megabox and Lotte Cinema — creating what will become South Korea's largest theatrical exhibition company.The joint venture, which will be co-managed by both groups, is designed to expedite new investment opportunities and secure approval from the Fair Trade Commission, JoongAng Group announced.“The agreement was reached following discussions aimed at strengthening competitiveness and ensuring long-term sustainability in their cinema and film businesses,” JoongAng Holdings said in an official statement, according to YNA.Currently, JoongAng's entertainment division, Contentree JoongAng, holds a 95.98% stake in Megabox JoongAng, while Lotte Shopping owns 86.37% of Lotte Cultureworks.According to Korean Film Council data, CGV is the current market leader with 1,346 screens nationwide. The merged entity will immediately surpass this figure, operating 1,682 screens — 915 from Lotte Cinema and 767 from Megabox.The merger also carries significant implications beyond theatrical exhibition. Lotte Cultureworks owns Lotte Entertainment, a major film distributor and investor, as well as the Charlotte musical theater chain. Megabox JoongAng controls PlusM Entertainment, another key film investor and distributor, and Playtime JoongAng, which operates indoor children's playgrounds.JoonAng Group also owns SLL, which has produced webtoon-related content such as Roppongi Class, Shark: The Storm, and Cashero. Source: YNA (Bo-ram Oh)
