Major South Korean multiplex chains including CGV, Lotte Cinema, and Megabox are scaling back their physical footprints, shutting down several locations as rising operational costs squeeze theater networks despite box office hits like “The King and the Man” and “Odyssey,” according to industry reports and multiplex business filings.
Theater Closures Hit Major Seoul and Regional Locations
According to film industry disclosures published on October 19, Megabox is permanently closing its Sinchon branch in Seodaemun-gu, Seoul, on October 21 after 20 years in operation, as its lease agreement expires, according to Herald Corp. The Megabox Dongdaemun branch is also scheduled to shut its doors on October 30. Other major multiplex operators are following suit. CGV Pangyo closed permanently on September 19 following the expiration of its lease after 11 years of operation, according to the same reports. Lotte Cinema closed its Hapjeong branch on September 31 and its Bupyeong branch on September 19.
Financial filings from the three major multiplex operators—CGV, Lotte Cinema, and Megabox—show that their combined theater count dropped to 419 locations as of the end of June, down from 428 locations at the end of last year, according to Herald Corp. Industry analysts expect that total to decline further by the end of the year as companies prioritize financial health.
Box Office Rebound Fails to Offset Rising Overhead
The theater closures come during a period of relative box office recovery compared to previous years. According to data from the Korean Film Council (KOBIS), cumulative ticket sales from January to August reached 8726만명 admissions, generating 8983억원 in revenue. That represents a 28.9 percent increase in attendance and a 36.4 percent increase in revenue compared to the same period last year.
Blockbuster releases drove the seasonal gains. The historical drama “The King and the Man” drew 1692만명의 moviegoers to become the second highest-grossing film in South Korea’s box office history, according to Herald Corp. Christopher Nolan’s “Odyssey” surpassed 1100만명을 by October after recording 901만명을 tickets sold between January and August, while “Spider-Man: Brand New Day” crossed the 800만명을 mark.
Despite those hits, current attendance remains well below pre-pandemic levels. In 2019, South Korea’s annual box office recorded 22667만여명 moviegoers and 1조9139억여원에 in revenue. A theater industry official told Herald Corp that attendance figures remain depressed while labor, production, and rental costs have climbed, leaving operators with little choice but to trim locations to protect their balance sheets. Additional pressure stems from corporate restructuring at Megabox, where Megabox Joongang has entered rehabilitation procedures amid liquidity issues at Joongang Group, according to Herald Corp.
Commercial Shifts and Oversaturated Districts
Theater contractions are closely tied to shifting urban commercial districts and changing consumer habits. The closure of the Megabox Sinchon location reflects a broader retail slump in a district experiencing declining foot traffic among university students, according to Herald Corp. The Dongdaemun commercial zone has similarly contracted due to the growth of online shopping. The closure of Lotte Cinema Hapjeong followed intense competition in the immediate Hongdae commercial area, which houses rival branches including CGV Hongdae, Megabox Hongdae, and CGV Yeonnam, according to reporting by Herald Corp.
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