Megabox Joongang and Lotte Cultureworks Announce Post-Merger Investment Roadmap

[Financial News] Megabox Joongang and Lotte Cultureworks announced on the 22nd that they plan to actively pursue investments in the theater and film industry overall following their merger.
The strategy is to secure necessary funds through activities to improve financial soundness and attract external investments, and to focus these funds on enhancing theater infrastructure and content business competitiveness.
Recently, the domestic film industry has been experiencing a prolonged recession due to complex factors such as the spread of global OTT services, investment contraction, and audience decline. The two companies plan to improve their profit structure through this merger by attracting new investments, optimizing organizational operations, and creating marketing synergies, and to utilize the secured funds for △ improving financial structure △ enhancing customer service △ expanding content investment.
In particular, they have prioritized strengthening services for theater audiences. They plan to focus on expanding special screening rooms and differentiating screening environments to encourage audiences to return to theaters.
Currently, Megabox Joongang operates Dolby Cinema and MX4D theaters, while Lotte Cultureworks operates Superplex, Gwang-eum Cinema, and Charlotte theaters. The two companies plan to expand the special theaters concentrated in the metropolitan area to other regions to actively improve cultural accessibility.
Additionally, they will contribute to revitalizing the content creation ecosystem. They plan to provide more production opportunities to creators and focus on discovering new talents and competitive K-content. Based on the production capabilities and infrastructure owned by both companies, they aim to continuously produce high-quality content and establish a virtuous cycle structure by reinvesting the profits obtained into the overall domestic film industry.
A representative from Joongang Group stated, “The launch of the merged corporation is expected to be a turning point that injects new vitality into the long-stagnant Korean film industry,” adding, “The two companies will work together to provide more creative opportunities for filmmakers and to present a variety of works to audiences so that theaters can regain their vitality.” They continued, “We will faithfully carry out all procedures, starting with prior consultations with the Fair Trade Commission and leading to the formal corporate merger notification.”
jashin@fnnews.com Shin Jin-a Reporter