Roadmap for the Merger of Film Affiliates between Joongang Group and Lotte Group
Lotte Cultureworks and Megabox Joongang announced on July 22 that, following their merger, they will actively pursue the expansion of theater infrastructure and investment in K-content.
Lotte and Joongang plan to concentrate the funds secured through financial structure improvement and external investment attraction into theaters and the film industry as a whole. Their strategy is to revitalize the stagnant theater market by improving profit structures, streamlining organizational operations, and creating marketing synergies.
Their immediate focus will be on enhancing audience services. The two companies aim to improve viewing environments and increase cultural accessibility by expanding their special theaters?such as Dolby Cinema and MX4D theaters (Megabox Joongang), and Super Plex, Gwang-eum Cinema, and Charlotte theaters (Lotte Cultureworks)?to regions outside the Seoul metropolitan area.
In the content sector, they will focus on discovering new creators and nurturing competitive K-content, leveraging their experience in producing films based on webtoons and web novels. Their policy is to pool production capabilities to deliver high-quality content and reinvest profits to establish a virtuous cycle within the domestic film ecosystem.
The two companies stated, "We believe this merger will serve as a catalyst for the resurgence of the Korean film industry," and added, "We will faithfully carry out all procedures, from consultations with the Fair Trade Commission to the business combination filing."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
