CGV, the nation’s leading cinema operator, closed four more locations this month and executed its second round of voluntary retirements since the pandemic, with around 80 employees departing. (Image courtesy of Yonhap)
SEOUL, March 31 (Korea Bizwire) — A wave of closures and voluntary retirements has swept across South Korea’s movie theater industry over the past year, as the sector continues to grapple with a prolonged slump in attendance since the COVID-19 pandemic. Once-thriving multiplexes now face a stark new reality—one marked by falling ticket prices, rising costs, and fewer blockbusters drawing crowds.
According to the Korean Film Council, 16 theaters shut their doors in 2024, including iconic venues like Daehan Cinema and well-located branches of top chains such as CGV Incheon Nonhyeon, Lotte Cinema Seomyeon, and Megabox Gangnam-daero. CGV, the nation’s leading cinema operator, closed four more locations this month and executed its second round of voluntary retirements since the pandemic, with around 80 employees departing.
While CGV reported an overall operating profit of 75.9 billion won last year, most of it came from overseas operations in Southeast Asia and the global expansion of its ScreenX specialty theaters. Domestically, it posted an operating loss of 7.6 billion won. Lotte Cinema barely broke even thanks to revenues from Vietnam, while Megabox reported a loss of 13.4 billion won.
The root of the crisis lies in the sluggish recovery of audience numbers. Total moviegoers in 2024 reached approximately 123 million—just over half of the pre-pandemic peak of 226 million in 2019 and down by more than 2 million from 2023. Meanwhile, labor and rent costs have continued to climb, and the average ticket price dropped below the 10,000-won threshold, to 9,702 won.
Theaters are not giving up. CGV, Lotte Cinema, and Megabox are now leaning into differentiated content and curated experiences to lure audiences back. (Yonhap)
Industry insiders are increasingly accepting these trends as a “new normal.” “With streaming services now firmly embedded in everyday culture, it’s unlikely we’ll return to the days of 200 million-plus theatergoers,” said one film distributor.
Yet theaters are not giving up. CGV, Lotte Cinema, and Megabox are now leaning into differentiated content and curated experiences to lure audiences back. One emerging strategy is the exclusive release of select films that cannot be seen elsewhere. In recent months, Megabox drew 460,000 viewers for Attack on Titan: The Final Season – The Last Chapters and 300,000 for Look Back. CGV and Lotte also saw modest success with niche animation titles.
Live screenings of K-pop concerts and sports events are also proving effective. CGV’s release of Lim Young-woong: I’m Hero – The Stadium became the most-watched concert film in Korea, attracting 350,000 viewers. Similar releases featuring BTS, Seventeen, IU, IVE, and aespa have filled seats, tapping into passionate fanbases.
At the same time, multiplexes are investing in premium experiences to make the theater feel worth the trip. High-end screening rooms like IMAX, Superplex, and Dolby Cinema have been expanded, and fully reclinable seating is becoming more common. In a recent innovation, CGV opened the world’s first ScreenX theater with projections on the front, side, and ceiling at its Yongsan location.
Theaters are also collaborating with food brands and launching exclusive merchandise to enhance the overall experience.
Still, insiders stress that no amount of innovation can replace the power of a hit film. “Great sound and comfortable seats are now expected—but at the end of the day, it’s about compelling content,” said one multiplex executive. “We need at least one or two mega-hits a year to revive the industry.”
Another added, “Last year was sluggish overall, but Exhuma and The Roundup 4 each drew over 10 million viewers. It proves that when a film truly demands the big-screen experience, audiences will still make the effort to come.”
As the industry looks ahead to 2026, its survival may depend on the return of just such films—and the audience’s willingness to once again make theaters part of their cultural routine.
Lina Jang (linajang@koreabizwire.com)
