[Special Stock] Showbox Anticipates Full Lifting of Social Distancing... Movie Theaters Expected to Normalize After 2 Years

[Asia Economy Reporter Park Hyungsoo] Showbox is showing strong performance. It appears that the announcement by the Korea Disease Control and Prevention Agency that the peak of the outbreak has completely passed influenced the government's upcoming announcement on the 15th to significantly ease quarantine guidelines, equivalent to the abolition of social distancing.

As of 1:35 PM on the 14th, Showbox is trading at 5,790 KRW, up 8.63% from the previous day.

According to health authorities, the government is reviewing a social distancing adjustment plan to completely lift restrictions on private gathering sizes and operating hours for restaurants and cafes starting next week. This is based on the fact that as of midnight on the 14th, the number of new COVID-19 cases remained in the 100,000 range for the second consecutive day at 148,443, and the number of critically ill patients dropped to three digits at 962 after recording 1,007 on March 8, marking 38 days of decline in the outbreak.

The health authorities stated that new confirmed cases have decreased by 60% compared to the peak. The current '10-person, midnight' regulation will be removed, and the standards for gatherings and events, currently allowed for up to 299 people, are expected to be relaxed or eliminated. Eating and drinking will also be permitted inside indoor performance venues and movie theaters.

The industry with the greatest anticipation for the lifting of social distancing is the cinema industry. Although theaters endured by reducing screening rooms and operating staff, the cinema industry was in a state of collapse. A vicious cycle of declining audience numbers and repeated delays of anticipated releases continued.

Researcher Lee Sangheon of Hi Investment & Securities explained, "With an increase in this year's theatrical release lineup, Showbox's performance improvement is expected to accelerate," adding, "We also plan to produce dramas and OTT original series by utilizing the experience, know-how, and network accumulated through film production."