Theater Owners Shaken by COVID-19, Turnaround with 'With Corona' Policy

Director Jeong Eun-kyeong of the Korea Disease Control and Prevention Agency Officially Mentions With Corona
CJ CGV and J Contentree Stocks Rise 17.84% and 21.77% Since the 23rd of Last Month, Respectively

A movie theater in downtown Seoul is quiet on the 11th, one day before the implementation of Level 4 social distancing in the metropolitan area. Photo by Moon Honam munonam@

[Asia Economy Reporter Gong Byung-sun] Theater owners, who were shaken by COVID-19, are showing a turnaround with With Corona. If major Hollywood works are released as scheduled in the future, the recovery trend is expected to become even stronger.

According to the Korean Film Council on the 5th, the average daily number of moviegoers in September recorded 262,790. Although the number of confirmed COVID-19 cases still exceeds 1,000, reaching 1,375 as of the previous day, the number of viewers has actually increased compared to the second quarter of this year (April to June), when the number of confirmed cases was around 500. The average daily number of viewers in the second quarter was only about half of September’s, at 130,445.

This is interpreted as audiences flocking to theaters due to expectations for With Corona. With Corona, a coexistence quarantine strategy for daily life and COVID-19, was first mentioned at the National Assembly Health and Welfare Committee plenary meeting held on the 23rd of last month. Jung Eun-kyung, Commissioner of the Korea Disease Control and Prevention Agency, responded to a question from Shin Hyun-young, a member of the Democratic Party, saying, "Regarding the transition to With Corona, preparation and review work may be publicly conducted from the end of September or early October."

The stock market also reflects expectations for With Corona. From the 23rd of last month to the 3rd of this month, CJ CGV rose by 17.84%, and J Contentree rose by 21.77%. Since the number of new COVID-19 cases first exceeded 2,000 on the 11th of last month, CJ CGV fell by 14.45% and J Contentree by 13.73% until the mention of With Corona, but they are now rebounding.

Kim Hoe-jae, a researcher at Daishin Securities, explained, "The number of viewers in the second quarter of this year was about 22% compared to the same period in 2019, but major works have been steadily released despite strengthened social distancing," adding, "Seating with spacing in theaters no longer acts as a risk factor."

Major Hollywood works scheduled to be released consecutively in the second half of the year are also expected to boost theater companies’ profits. In the second half of last year, famous works either did not premiere or went to online streaming services (OTT) such as Netflix, but the trend is gradually returning to theaters. Shin Soo-yeon, a researcher at Shin Young Securities, said, "Popular foreign films such as Spider-Man and Kingsman are scheduled to be released in the second half of the year," adding, "The release of famous works will contribute to the steady recovery of audience numbers."