On the 3rd at CGV Pangyo (CJ CGV(079160)) in Seongnam, Gyeonggi Province, a 13-year-old girl surnamed Kim said this. Kim, who said she came here from Yongin with friends to watch a movie, said, "From now on, if I want to watch an IMAX movie, I'll probably have to go to Seoul."
Around 8 p.m. the same day, CGV Pangyo was bustling with moviegoers despite it being a weekday. Most were there to see the recently released "Spider-Man: Brand New Day" in the IMAX auditorium. Some moviegoers who noticed the closure notice posted on one side of the theater said, "It was always crowded, so this is unexpected," and "Where are we supposed to go to watch movies now," voicing regret.
With CGV Pangyo, a flagship premium auditorium representing southern Gyeonggi and one of the nation's top-grossing locations, set to close, some say even theaters that draw large crowds are finding it hard to survive the competition for space inside department stores. As theaters no longer function as a key facility that draws customers to department stores and malls as they did in the past, they are being treated as low-profit spaces.
◇ No. 17 in nationwide sales, closing this month
According to CJ CGV and others on the 5th, CGV Pangyo will close on the 19th. It comes 11 years after it opened alongside the 2015 opening of Hyundai Department Store(069960) Pangyo.
Located on the 5th to 8th floors of the department store, CGV Pangyo operated as the largest local theater with seven auditoriums and 1,432 seats. It was fully equipped with major premium formats, including IMAX, 4DX, ScreenX and Temper Cinema (bed auditorium).
In particular, the IMAX screen measures 22 meters wide by 13.3 meters high, the largest among the eight IMAX screens in Gyeonggi Province. In last year's nationwide multiplex theater sales rankings, it placed 17th, ahead of locations such as Seoul Gangnam and Hongdae.
Outwardly it was a key location that drew crowds, but it reportedly is closing after failing to secure an additional extension of its lease.
A CJ CGV official said, "It's unfortunate that we have to close a flagship theater," and added, "We have no separate plans for a new opening following the closure." A Hyundai Department Store official said, "We are reviewing spaces that can offer customers diverse experiences."
◇ Even with many moviegoers, it doesn't translate into spending… The customer-drawing effect of theaters is weakening
The industry notes that theaters' low space profitability may have weighed on the lease extension. Given that moviegoers are not sufficiently linked to in-department-store spending, there is analysis that Hyundai Department Store may have reviewed other facilities that can raise sales per unit area instead of a theater.
Hyundai Department Store Pangyo topped all Hyundai Department Store locations last year, surpassing 2 trillion won in annual sales. Sales of high-end luxury goods and watches and jewelry drove performance.
In the first quarter this year, luxury sales at this store rose 38% from a year earlier, outpacing the national store average growth rate of 30% by 8 percentage points (p). During the same period, watch and jewelry and premium apparel sales also increased 40.8% and 32.5%, respectively.
Compared with luxury and fashion stores that generate high sales in limited floor space, theaters—which occupy large areas yet have limited direct sales revenue—can be judged to have low space efficiency.
In the past, many patrons browsed the department store or dined and shopped before or after a movie, and theaters were counted as representative customer-drawing facilities. But as mobile ticketing has become commonplace, more moviegoers arrive just in time for showings, and the effect of converting moviegoers into department store consumers has also weakened, the industry said.
There are also complaints that, compared with the long time moviegoers occupy parking spaces, their in-store spending is not large. A department store industry official said, "Not only has the theater audience itself declined, but patrons' spending power isn't what it used to be," adding, "From the perspective of department stores or shopping centers, creating restaurant districts or experiential facilities instead of theaters may be more rational in terms of profitability."
◇ Fewer theaters and screens… Hit-driven concentration is intensifying
The theater industry slump is also accelerating the downsizing of locations. According to the Korean Film Council (KOFIC), the number of theaters nationwide fell 4% (23 locations) last year to 547. The total number of screens also fell 4.3%.
Korea's film industry, hit hard by COVID-19, still has not returned to past levels amid the growth of over-the-top (OTT) services. Theater sales in the first half of this year totaled 579 billion won, more than 30% below the first-half average for 2017–2019 before COVID-19. Considering higher ticket prices, the actual decline in viewing demand is estimated to be larger.
The concentration of audiences on a few hits is also intensifying. "The King's Warden," the biggest hit of the first half, recorded 163.1 billion won in sales and 16.91 million admissions, accounting for about 28% of total first-half box office revenue.
The top three hits, including "Colony" and "Salmokji," generated a combined 256.9 billion won, or 44% of total revenue. This suggests a hardening structure in which theater sales plunge during periods without a major blockbuster.
◇ Expanding premium formats… Even flagship locations can't be assured survival
The theater industry is seeking a path forward by expanding premium auditoriums that provide viewing experiences differentiated from general screens. The number of premium-format screens nationwide nearly tripled over five years, from 445 in 2021 to 1,232 in 2025. Premium formats now account for nearly 40% of all screens.
However, the closure of CGV Pangyo, which had a large IMAX and a variety of premium formats, shows that premium competitiveness alone cannot guarantee a theater's survival. Even if theaters secure audiences, flagship locations may close if they fail to overcome issues such as high rents, low space efficiency, and weaker linkage to in-department-store spending.
The Korean Film Council (KOFIC) analyzed, "As the unique viewing environment of theaters weighs heavily on consumer choice, the industry appears to be continuously expanding premium formats."