The Ministry of Culture, Sports and Tourism is assessing the impact of Megabox Central's application for corporate rehabilitation (court receivership) on the film industry and is working to establish effective support measures.
On July 10, the ministry held an emergency meeting with the Korean Film Council to discuss response strategies with relevant companies regarding Megabox's rehabilitation process.
Attendees included Minister Choi Hwi-young and Han Sang-jun, chairman of the Korean Film Council, along with representatives from the distribution sector closely tied to Megabox and managers of contracted screening theaters.
Industry representatives expressed deep concerns about the operational burdens that Megabox's rehabilitation process could impose on distribution and screening venues, as well as the potential ripple effects across the industry. They urged the government to play an active role in preventing issues like unpaid settlement fees from causing widespread damage to the film sector.
Listening to the concerns, Minister Choi stated, "As a government that has focused its policy efforts on the recovery of the film industry, we are closely monitoring the recent situation. We recognize that if the industry collapses, there will be no future for Korean cinema, and we will actively seek available policy measures to minimize the impact on the industry."
Previously, Megabox applied for corporate rehabilitation on June 14 due to liquidity issues faced by its parent company, Jungang Group. Following the court's issuance of a preservation order and a comprehensive injunction, the Film Industry Solidarity issued a statement on July 8, calling for the establishment of minimum protective measures for small and medium-sized film businesses.
The Film Industry Solidarity emphasized, "The rehabilitation process of Megabox Central is not just a problem for one company; it reveals how vulnerable the cyclical structure of the Korean film industry is. What is needed now is a responsible rehabilitation process and a public response that minimizes the damage to the industry community."
The Ministry of Culture and the Korean Film Council will initiate follow-up measures to reduce the impact on the film industry based on feedback from the field. Since June 25, the government has opened a 'Film Industry Impact and Issues Reception Center' to gather industry opinions and plans to hold an explanatory session on the rehabilitation process for related companies soon, as well as provide specialized legal consultations for claims and other needs.
* This article has been translated by AI.
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