The Rise and Fall of the Multiplex Era

The introduction of multiplex cinemas in South Korea marked a pivotal moment in the nation’s film industry. The opening of CGV Riverside in 1998, boasting 11 screens, ushered in an era where audiences could enjoy a diverse range of films in modern, cozy settings. This contrasted sharply with the older, single-screen theaters, and significantly boosted cinema attendance, embedding filmgoing into the daily lives of Koreans.

Merger Signals Deepening Crisis

Fast forward to today, and the landscape has drastically changed. The once-dominant multiplexes are now grappling with a severe crisis, evidenced by the recent merger discussions between Lotte Culture Works (Lotte Cinema) and Megabox Central (megabox). These companies, holding the second and third positions in the market respectively, signed a memorandum of understanding (MOU) on May 8th to explore a potential merger. This move underscores the deteriorating conditions within the Korean film market, where even major players must consolidate to survive.

This proposed merger highlights the intense pressures facing the industry. The combined entity would aim to streamline operations, reduce costs, and perhaps offer a more competitive experience to consumers. However,it also raises questions about market concentration and the potential impact on smaller,self-reliant cinemas.

multiplexes’ Contribution to K-Movie Boom

Multiplex cinemas played a crucial role in the growth and popularity of Korean cinema, frequently enough referred to as “K-Movie.” The enhanced viewing experience, with high-definition screens and superior sound systems, captivated audiences. The integration of convenience facilities like restaurants and shopping malls within the same complex further incentivized frequent visits. This increased exposure fueled demand for higher-quality films, pushing directors and producers to create commercially viable and artistically compelling works.

The multiplex era fostered a symbiotic relationship between filmmakers and audiences, driving innovation and elevating the overall quality of Korean cinema.

Industry analyst, Korea Film Council

Declining Theater Sales Threaten Industry Stability

Traditionally, theatrical releases have been the backbone of the Korean film market, accounting for 60-70% of total film revenue. While Video on Demand (VOD) and Over-The-Top (OTT) platforms offer option distribution channels, the Korean film industry heavily relies on strong box office performance for financial stability. However,domestic theater sales have been plummeting. After reaching ₩1.91 trillion in 2019, sales experienced a sharp decline of 37.6% by 2024.

This decline can be attributed to several factors, including the rise of streaming services, changing consumer habits, and the lingering effects of the global pandemic. The convenience and affordability of streaming have drawn audiences away from conventional cinemas, posing a notable challenge to the multiplex model.

Can Multiplexes Adapt and Survive?

The future of multiplex cinemas in South Korea remains uncertain. The proposed merger between Lotte Cinema and Megabox represents a desperate attempt to adapt to the changing market dynamics. To revitalize the industry, multiplexes must innovate and offer unique experiences that cannot be replicated at home. this could include investing in premium formats like IMAX and 4DX, hosting special events and screenings, and creating more immersive and interactive cinema experiences.

Furthermore, collaboration between multiplexes, filmmakers, and distributors is essential to develop new strategies for attracting audiences and maximizing revenue. By embracing innovation and fostering a collaborative ecosystem, the Korean film industry can navigate the current challenges and ensure a vibrant future for both multiplex cinemas and Korean cinema as a whole.

Korean Cinema Faces a Perfect Storm

The South korean film industry is at a critical juncture, grappling with a confluence of challenges that threaten its long-term viability. From dwindling audiences and financial losses to the rise of Over-The-Top (OTT) streaming services and the looming specter of international tariffs, the industry is being forced to adapt or risk decline.

Box Office Blues: A Steep decline

The impact of the COVID-19 pandemic, coupled with delayed releases and rising ticket prices, has had a devastating effect on cinema attendance. In 2024, total revenue plummeted to a mere KRW 1.945 billion, a stark contrast to the pre-pandemic figures. audience numbers have halved since 2019, dropping from 226.68 million to just 123.13 million last year. Projections for this year paint an even bleaker picture, with attendance potentially falling below 100 million.

This decline reflects a broader trend in global cinema, where streaming services are increasingly becoming the preferred mode of content consumption. According to a recent study by the Motion Picture Association, global streaming subscriptions surpassed 1.2 billion in 2024, highlighting the shift in audience behavior.

Multiplex Merger: A Strategy for Survival

In response to these financial pressures, Lotte Cinema and Megabox, two of South Korea’s leading multiplex chains, have announced a merger. both companies have been struggling, with Lotte Cinema reporting a meager operating profit of 300 million won last year and Megabox incurring a substantial operating loss of 13.4 billion won. The chains have already closed a combined 16 branches.

Synergies and Efficiencies

The merger aims to create economies of scale and reduce operational costs. By combining their screen count (915 for Lotte Cinema and 767 for Megabox), the merged entity will surpass CJ CGV (1346 screens) as the largest cinema chain in South Korea. This consolidation is expected to streamline operations and eliminate redundant marketing expenses, which have previously fueled a bleeding competition among the three major players.

investment and Distribution: A Boost for korean Films

Beyond theater operations, the merger is anticipated to create synergies in film investment and distribution. Lotte Culture Works, which operates Lotte Entertainment, and Megabox Central, affiliated with Plus M Entertainment, will be able to pool their resources to support a wider range of Korean films. Lotte Entertainment is known for the With God series, while Plus M Entertainment is famous for the Crime City series. This collaboration could lead to increased investment in diverse Korean cinematic projects.

The OTT Challenge and the Threat of Tariffs

The rise of OTT platforms like Netflix and local players such as Coupang Play poses a significant threat to traditional cinemas. These services have fundamentally altered audience viewing habits, making it challenging to lure viewers back to theaters, especially with rising ticket prices.

Coupang Play’s Aggressive Strategy

Coupang Play is intensifying competition by offering a free membership system to general Coupang members, albeit with advertisements. This move is expected to attract a large user base,further diverting audiences from cinemas.

The trump Tariff Threat

Adding to the industry’s woes is the potential imposition of tariffs on foreign films by the United States. Former US President Donald Trump’s announcement of a possible 100% tariff on all foreign-produced movies has raised concerns about the impact on Korean films. While the actual implementation and percentage remain uncertain, the threat looms large.

Although the US accounts for approximately 15% of Korean film exports, the imposition of tariffs could significantly hinder the entry of K-Movies into the US market, a crucial hub for the global film industry. This could exacerbate the existing challenges faced by the Korean film industry.

Adapting to Survive: Innovation and Diversification

Despite the challenges, the Korean film industry is exploring various strategies to adapt and survive. multiplexes are investing in specialized theaters to enhance the cinematic experience and offer something that cannot be replicated at home.

Specialized Theaters: An Immersive Experience

4D halls, IMAX screens, and Screen X formats are becoming increasingly popular, providing audiences with immersive visual and sensory experiences. These enhanced formats aim to draw viewers back to theaters by offering a unique and compelling cinematic experience.

Theaters as Cultural Hubs

Cinemas are also evolving into complex cultural spaces, offering a diverse range of content beyond traditional film screenings. Live K-pop performances, opera, musicals, and sports broadcasts are now common offerings. Additionally, lectures on art, beliefs, and other subjects are attracting new audiences.

The Enduring Appeal of the Shared Cinematic Experience

The history of cinema began with the Lumiere brothers’ Arrival of a Train at La Ciotat in 1895, screened in a café. The shared experience of watching a film on a large screen, feeling the collective emotions of the audience, and sharing moments of joy, suspense, or inspiration remains a powerful draw. The Korean film industry must leverage this enduring appeal while embracing innovation and adaptation to navigate the challenges ahead.

The Resurgence of Nostalgia in Cinema

In an era dominated by streaming services and on-demand content, the theatrical re-release of classic films is experiencing a significant resurgence. This trend speaks to a deeper yearning for shared experiences and the unique emotional resonance that only a cinema can provide. Beyond mere nostalgia, these re-releases offer a chance for new audiences to discover cinematic gems and for longtime fans to reconnect with cherished memories on the big screen.

Beyond Nostalgia: A New Generation Discovers Classic Films

While nostalgia undoubtedly plays a role,the appeal of re-releases extends beyond those who originally experienced the films in theaters. Younger generations, accustomed to consuming content on smaller screens, are increasingly drawn to the immersive experience of seeing classic movies as they were intended to be seen. This provides an opportunity for cross-generational connection, as families and friends can share in the magic of these films together.

The Multiplex and the Art of Re-Release

The role of the multiplex in facilitating these re-releases is crucial. By dedicating screens to classic films, theaters provide a platform for audiences to rediscover and appreciate these works. This is especially critically important in an industry frequently enough focused on blockbuster releases and new content. The multiplex becomes a space where the past and present of cinema converge,offering a diverse range of viewing options.

The Emotional Power of Shared Viewing

The communal aspect of watching a film in a theater amplifies the emotional impact. Laughter,tears,and gasps are shared experiences,creating a sense of connection among audience members. This shared emotional journey is something that cannot be replicated in the solitary habitat of home viewing. The re-release of a beloved film provides an opportunity to relive these emotions and create new memories with friends and family.

Expert Insight: The Enduring Value of Cinematic Emotion

According to Professor Kim Hee-kyung, a Media Communication expert at Inje University, the re-release of films holds significant value. As of this precious memory, the film is more special and embodied. if the theater is constantly working around the multiplex, the audience will be able to return to enjoy the emotion again.

Because of this precious memory, the film is more special and embodied. If the theater is constantly working around the multiplex, the audience will be able to return to enjoy the emotion again.

Kim Hee-kyung,Professor of Media Communication,Inje University

professor Kim’s insight highlights the importance of preserving and celebrating cinematic history. by making these films accessible to a wider audience, theaters contribute to the cultural landscape and ensure that future generations can experience the magic of classic cinema.

The Future of Film re-Releases

As technology continues to evolve, the role of the cinema may change, but the desire for shared emotional experiences will likely remain constant. The re-release of classic films offers a way to bridge the gap between the past and the present, providing audiences with a chance to reconnect with beloved stories and create new memories. With careful curation and promotion, film re-releases can continue to thrive, enriching the cinematic landscape for years to come.