Opened in 1958 as the nation’s largest theater, the Daehan Cinema hosted classic films like “Ben-Hur” and “The Sound of Music,” cementing its status as Chungmuro’s crown jewel. (Image courtesy of Yonhap)
SEOUL, May 6 (Korea Bizwire) – Chungmuro, the heart of Korean cinema, has lost one of its last bastions. The Daehan Cinema, once a leading marquee in the neighborhood affectionately called the “Broadway of Seoul,” will shut down on September 30 after 66 years, succumbing to years of deficits its operator could no longer sustain.
The closure marks the latest in a cascade of theater bankruptcies, as the online streaming era heralded by Netflix portends an end to the cinematic experience. The Daehan Cinema’s operator announced the decision to shutter the iconic venue through regulatory filings.
Opened in 1958 as the nation’s largest theater, the Daehan Cinema hosted classic films like “Ben-Hur” and “The Sound of Music,” cementing its status as Chungmuro’s crown jewel. In 2002, it reopened as an 11-screen multiplex after a 25 billion won renovation to match changing audience demands.
But as the movie business paradigm shifted, the theater sank deeper into deficits despite its revamp, ultimately forcing its demise.
Even the multiplex giant CJ CGV, which operates South Korea’s biggest theater chain, has teetered on the brink. Facing massive losses last year, it executed a 1 trillion won recapitalization — a shock that left the industry reeling over CGV’s dire straits.
CGV has downsized through extensive restructuring like voluntary retirements and unpaid leaves. A string of box office hits like “The Roundup” and “The Gangster, the Cop, the Devil” provided a breather, but the crisis persists.
At the core is a precipitous plunge in theater admissions over just a few years to barely a quarter of previous levels, which failed to rebound even after COVID’s waning. Instead of cinemas, Koreans have embraced streaming platforms like Netflix as their preferred video consumption method.
Soaring ticket prices, now averaging around 15,000 won after doubling pre-pandemic rates, dealt another blow. With snacks, a single movie outing can cost upwards of 30,000 won per person — making the 13,500 won monthly Netflix fee seem ever more appealing to budget-conscious viewers.
Over 30 million Koreans have installed streaming apps, solidifying OTT as a major competitor to theatrical distribution. In contrast to dwindling cinema audiences, Netflix’s domestic user base has surged by millions annually.
“As more creative talent shifts to developing OTT content tailored to current viewing habits, the competitiveness of theatrical releases continues declining,” said an industry insider, noting apart from rare blockbusters, most new films now struggle at the box office.
Lina Jang (linajang@koreabizwire.com)
