Major South Korean multiplex chains including Megabox, CGV, and Lotte Cinema are scaling back their physical footprints, shutting down several locations across Seoul and surrounding areas as commercial leasing agreements expire and operators grapple with post-pandemic financial pressures. According to corporate filings, the total number of movie theaters operated by the country’s top three exhibitors dropped to 419 as of June, down from 428 at the close of the previous year.
Theater Closures Sweep Seoul and Surrounding Suburbs
Industry data shows a wave of closures hitting core metropolitan branches. Megabox announced that its Sinchon location will end operations on the 21st, after a run that began in 2006, driven by the conclusion of its lease agreement. The company’s Dongdaemun branch is scheduled to close on the 30th, wrapping up nearly two decades in operation.
Other major operators are executing similar cutbacks. CGV permanently closed its Pangyo branch on the 19th of last month. Located inside a department store and featuring specialized screens like IMAX and 4DX, the theater shut down following the expiration of its lease after eleven years of business since opening in 2015. Meanwhile, Lotte Cinema shuttered its Hapjeong location on the 31st of last month, and its Bupyeong branch on the 19th of last month.
According to the Korean Film Council’s theater surveys, nationwide cinema counts peaked at 573 in 2023 before declining to 570 in 2024 and dropping further to 547 in 2025. Exhibitors attribute these reductions to structural shifts in commercial real estate and a persistent mismatch between operational costs and audience volume.
Box Office Recovery Fails to Match Pre-Pandemic Highs
The contraction comes despite a noticeable rebound in box office numbers compared to previous years. Data from the Korean Film Council indicates that cumulative moviegoers reached 8726만명 between January and August, generating 8983억원 in sales. These figures represent a 28.9 percent increase in attendance and a 36.4 percent jump in revenue over the same period in the previous year.
High-profile releases fueled the year’s gains. The historical drama The King and the Survivor drew 1692만명의 viewers to claim second place on South Korea’s all-time box office list. Christopher Nolan’s feature Odyssey brought in 901만명을 ticket sales through August before crossing the 1100만명을 threshold this month, while Spider-Man: Brand New Day surpassed 800만명을 admissions.
Despite these blockbusters, current totals remain well behind the peaks recorded before the COVID-19 pandemic. In 2019, the South Korean box office brought in 2억2667만여명 moviegoers and 1조9139억여원 in annual revenue. Theater representatives note that while foot traffic has stabilized from its lowest points, expenses such as staff wages, production costs, and rental fees have climbed, forcing companies to streamline operations to protect financial health. Financial restructuring at Megabox Central, which is undergoing rehabilitation due to a liquidity crisis at JoongAng Group, has also added pressure on theater network management.
Shifting Urban Commercial Districts Impact Foot Traffic
The theater closures closely mirror broader changes in urban commercial geography. The Sinchon district, once a bustling hub for university students, has experienced a drop in pedestrian traffic that directly impacted the local Megabox branch. Similarly, the Dongdaemun commercial zone has faced declining offline retail activity as online shopping expands.
In western Seoul, the closure of Lotte Cinema Hapjeong highlights the intense competition in saturated entertainment zones. The Hapjeong neighborhood sits in close proximity to CGV Hongdae, Megabox Hongdae, and CGV Yeonnam, creating a dense cluster of screens that led to severe head-to-head competition among multiplex operators before the location wound down operations.
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