[Edaily Starin, Reporter Choi Hee-jae ] While expectations for a recovery in the theater industry are growing this year following the back-to-back releases of films that have drawn 10 million viewers—such as *The Man Who Lives with the King* and *Odyssey*—the industry has, conversely, shifted its strategy. It is accelerating a restructuring of theaters focused on profitability rather than physical expansion.

According to the film industry on the 1st, seven locations—including Lotte Cinema’s Maseok, Bupyeong, and Hapjeong branches; CGV’s Pangyo branch; and Megabox’s Changwon Naeseo, Sinchon, and Dongdaemun branches—closed their doors in the second half of this year alone. According to financial statements from the Korean Film Council, the number of theaters operated by the three major multiplex chains—CGV, Lotte Cinema, and Megabox—stood at 419 as of the end of June this year, a decrease of 30 from the peak of 449 reached in 2023.
The number of locations operated by the three multiplex chains had been steadily increasing since 2016, when it stood at 330. After surpassing 400 in 2019, the number rose to 404 in 2020, 429 in 2021, and 441 in 2022, reaching 449 in 2023.
However, after falling to 440 in 2024, the number dropped further to 416 in 2025. With 33 locations disappearing in just two years, analysts suggest this reflects a shift in the multiplex industry’s growth strategy following the pandemic. While competition previously centered on expanding scale through new openings, strategies have recently shifted toward improving operational efficiency in line with market size.
The number of movie theaters nationwide is following a similar trend. According to the Korean Film Council, the number of theaters nationwide decreased from 573 in 2023 to 570 in 2024 and 547 in 2025. While audiences have begun returning to theaters, the theater infrastructure is actually shrinking.

Given the clear recovery in audience numbers this year, this reduction in theater locations may seem surprising. According to the Korean Film Council, the cumulative number of moviegoers from January to August this year reached 87.26 million, a 28.9% increase compared to the same period last year. Cumulative box office revenue also rose by 36.4% to 898.3 billion won. Blockbusters such as “The Man Who Lives with the King,” starring Yoo Hae-jin and Park Ji-hoon, and director Christopher Nolan’s new film “The Odyssey” led the market’s recovery.
However, it is difficult to say that the overall market has returned to pre-pandemic levels. In 2019, annual attendance reached 226.68 million, and theater revenue totaled 1.914 trillion won. Although the upward trend in attendance continues this year, the industry believes that since the market is currently driven by a few major blockbusters, it must remain cautious about expanding the number of locations.
Consequently, the multiplex industry’s strategy is shifting from quantity to quality. Whereas competition in the past centered on increasing market share through new openings and expanding the number of locations, the industry is now focusing on opening new theaters and upgrading facilities in key commercial districts where audiences congregate.

Last September, Lotte Cinema opened “Geomdan Ara,” a six-screen, 448-seat theater in Geomdan New Town, Incheon. It features “Gwangum Cinema,” the Geomdan area’s first sound-specialized theater, alongside standard theaters equipped with reclining seats in every row, highlighting a differentiated viewing experience.
CGV, too, is focusing on enhancing the competitiveness of its key locations rather than increasing the number of theaters. CGV Yeouido, which reopened last July, operates six screens, including 4DX, Dolby Atmos, and Art House theaters, and plans to expand to a total of seven screens with 713 seats in the second half of the year by adding the world’s first three-sided LED ScreenX theater.
Ultimately, “efficiency” rather than “expansion” appears to be taking root as the new strategy. The company is restructuring its business by concentrating investment on key locations capable of attracting audiences, while closing locations with high fixed costs or low profitability. The film industry anticipates that, even as audience numbers continue to recover, the theater industry’s restructuring of its locations will continue for the foreseeable future.