Accumulated Deficit Leads to Suspension of Film Screening Business
Value Upgraded by Hosting Global Performance 'Sleep No More'
Daehan Theater located in Chungmuro, Jung-gu, Seoul Special City
Chungmuro Daehan Theater, operated by Segi Sangsa, a KOSPI-listed company, will cease operations. The movie screening business has been continuously accumulating losses. Instead, Segi Sangsa plans to renovate the Daehan Theater building to host the world-renowned performance "Sleep no more."
According to the Financial Supervisory Service's electronic disclosure system on the 1st, Segi Sangsa announced that it will suspend all operations of its theater business division (Daehan Theater) and related ancillary businesses. The suspension amount is 1.862 billion KRW, which accounts for about 5.9% of Segi Sangsa's total sales last year.
Segi Sangsa was established in 1958 with the purpose of importing foreign films and distributing them to theaters nationwide. In 2021, the largest shareholder changed to Wuyang Industrial Development, and the company established an oil sales division, currently operating eight gas stations across the country. Currently, sales from the new business far exceed those from the theater business. As of last year, 91% of total sales came from gas stations.
A Segi Sangsa representative stated, "We will resolve the continuous losses caused by the paradigm shift in the movie screening business of the theater division," adding, "We are also closing Daehan Theater to optimize the company's owned assets and improve the business structure."
Segi Sangsa acquired Daehan Theater, one of Korea's leading premiere theaters, in 1959 in Chungmuro, Jung-gu, Seoul, and began direct management, operating it for 65 years until this year. However, with the rise of large multiplexes and online video streaming services (OTT), Daehan Theater's position gradually narrowed, and losses continued.
Last year, movie screening sales amounted to 870 million KRW, while the cost of movie screenings reached 1.97 billion KRW. The structure results in accumulating losses the more it operates. Although concession sales such as popcorn and beverages generated about 130 million KRW, the margin and scale were minimal.
Segi Sangsa plans to close Daehan Theater and remodel the building to attract the globally famous immersive performance "Sleep no more."
"Sleep no more" is an audience-participatory play produced by the UK-based production company Punchdrunk. It is a remake of Shakespeare's tragedy Macbeth. First produced in London in 2003, it has been performed as an open run in New York since 2011.
In "Sleep no more," audiences can follow actors directly as they watch. In New York, the performance is staged in the McKittrick Hotel, a five-story building with over 100 rooms used as the stage. During the three-hour performance, audiences can choose which actors or scenes to watch. Even when watching the same performance, the content experienced can be entirely different. Due to this unique format, it has become a tourist attraction in New York.
Meanwhile, Segi Sangsa will close Daehan Theater on September 30.
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