[Edaily Starin Choi Hee-jae Reporter] CJ CGV, South Korea’s leading multiplex operator, has entered the investment and distribution business. Attention is focused on whether the company will be able to breathe new life into the sluggish Korean film market by expanding its business scope beyond theater operations to include content distribution.

According to the film industry on the 8th, CJ CGV recently established CGV Pictures, a film investment and distribution company, and has begun full-scale operations. Its first official distribution title is the comedy-action film “Okay Madam 2,” starring Uhm Jung-hwa, set to open next month. Following tests of its distribution capabilities last year with films such as “God’s Band” and “My Name Is,” the company is officially launching with the release of “Okay Madam 2.”
CGV’s move comes amid a prolonged decline in the number of Korean films being released and a persistent shortage of content for theaters. Since the COVID-19 pandemic, the production environment has contracted, leading to a decrease in the supply of new films, and theaters have also struggled to secure a diverse lineup. In response, CGV—which operates theaters—is taking a proactive approach to secure content directly, aiming to address the shortage of films to screen.

◇Will It Be the Savior Amid the Film Industry’s Slump?
CGV Pictures plans to focus on mid-to-low-budget commercial films, often referred to as “middleweight” or “mid-range” productions. The company aims to release “The Day Without Hands,” starring actors Byun Yo-han, Ahn Jae-hong, and Ha Yoon-kyung, in the second half of this year. It plans to increase the number of films by expanding its investment in and distribution of mid-to-low-budget commercial films.
A CGV Pictures official stated, “The film industry is currently in a slump, and there is a severe shortage of new releases,” adding, “CGV Pictures will take on the role of filling this market gap with solid ‘mid-range films.’” While CJ ENM previously focused on tentpole films (high-budget blockbusters expected to be box-office hits), CGV Pictures aims to provide audiences with a wider variety of choices.
The film industry is welcoming the news of CJ Pictures’ launch. Unlike in the past, when dozens of films were produced and released each year, the mid-tier of Korean cinema has collapsed due to a recent decline in investment; the opening of this new investment and distribution channel is therefore a welcome development.
Film critic Yoon Seong-eun commented, “In the past, CGV showcased a variety of films through its arthouse theaters, but it was deeply regrettable that such efforts dwindled due to the film industry’s downturn.” He added, “With the number of annual releases plummeting to about one-tenth of what it used to be, the attempt to increase the number of mid-tier films is something the film industry cannot help but welcome, and it is also very encouraging for filmmakers.”
He went on to predict, “Going forward, it appears they will steadily build their lineup around proven mainstream hits like ‘Okay Madam 2’ or established IPs with high box office potential.”

◇Between Synergy and Concerns
The structure of operating both a theater chain and a distribution company has sparked both anticipation and concern. While some view it positively as opening up another avenue for investment and distribution, others worry that it could reinforce vertical integration—such as giving preferential screening slots to the company’s own distributed content in its own theaters.
In particular, since CJ ENM’s film division also engages in investment and distribution, some express concern that this structure may result in overlapping business areas.
However, there is also anticipation for synergy models involving content linked to CGV’s unique, technologically specialized infrastructure, such as 4DX and ScreenX. Amid the crisis in the film industry, all eyes are on CGV to see if its transformation into a “distribution player” can breathe new life into the sector.