CGV Implements Voluntary Retirement for the First Time in 4 Years Since the COVID-19 Pandemic

Around 80 Assistant Managers with Over Seven Years of Service Leave

CJ CGV, the largest multiplex in South Korea, has implemented voluntary retirement for the first time since the COVID-19 pandemic.

A CGV cinema in Seoul. Photo by Yonhap News

According to industry sources on the 9th, CGV accepted voluntary retirement applications last month from assistant manager-level employees with more than seven years of service. About 80 employees left the company through this voluntary retirement. It is reported that retirees received severance pay exceeding 100% of their monthly base salary, depending on their years of service.

This is the first time CGV has conducted voluntary retirement in four years, since February 2021. A CGV official explained, "Due to difficulties in the domestic theater industry, we proceeded with voluntary retirement as part of management efficiency measures."

With the domestic film market shrinking in the second half of last year due to the absence of hit movies, CGV’s domestic business also showed weaker performance compared to the previous year.

CGV’s domestic theater business revenue last year was 758.8 billion KRW, down 14.5 billion KRW (1.9%) from the previous year. Operating profit turned to a loss of 7.6 billion KRW.

However, with growth in Southeast Asian film markets such as Vietnam and Indonesia last year, CGV’s overall revenue and operating profit showed strong performance. CGV’s total revenue last year was 1.9579 trillion KRW, an increase of 412.1 billion KRW (26.7%) from the previous year. Operating profit rose by 26.8 billion KRW (54.6%) to 75.9 billion KRW, marking a second consecutive year of profit.