Joongang Group and Retail Behemoth Lotte Group have made a blockbuster deal that dramatically promises to shape the South again KoreaDramatic landscape.
Media and retail veterans signed a memorandum on Thursday to merge their respective cinema chains – Megabox And Lote cinema – Creating what will become the country’s largest dramatic exhibition unit.
Combined venture, which will be co-co-staged by both corporate heavyweight, is to fast-track the new investment opportunities and the approval of the fair trade commission.
In an official statement by the group’s holding company, Joangung Holdings, Joangung Holdings said, “The agreement was aimed at strengthening competition and ensuring long -term stability in its cinema and film businesses.”
Joongung, a content in Joangung Group’s entertainment division, currently holds a 95.98% stake in Megabox Joangung. Meanwhile, lotte shopping maintains 86.37% ownership in lotte cultureworks.
The dramatic exhibition area in South Korea continues to struggle with epidemic recovery challenges, and the two groups expresses optimism that their joint power will help rebuild the domestic film industry.
Statistics from the Korean Film Council suggest that while the market leader CiGG currently operates 1,346 screens across the country, the merged unit will immediately jump on the top position with a joint 1,682 screen – 767 of Lot Cinema’s 915 Plus Megabox of Lot Cinema.
The deal is only beyond the dramatic exhibition. The portfolio of the lotte cultureworks includes distribution and investment powerhouse Lotte Entertainment and Charlotte Musical Theater Chain, while megabox Jonging Plosm Entertainment (a film investor and distributor) and controlling plattemums, which operates indoor children’s playgrounds.
This merger can also affect the distribution landscape, as with both Lotte Entertainment and Megabox’s plum entertainment rank among South Korea’s leading film distribution players, with CJ NM, Shobox and New.
