Top Korean Cinema Chains Fined $5 Million For Unfair Operation

Korean movie "Masquerade" 2012

HONG KONG — South Korea’s two biggest cinema chains were this week fined for anti-competitive practises.

CJ-CGV was fined $2.9 million and Lotte Entertainment fined $2.1 million by the country’s Fair Trade Commission.

The fines were imposed after the FTC earlier rejected the two companies’ attempt to obtain a ‘consent decree’ – an offer of voluntary restitution by a guilty party – was rejected.

The FTC said that the two chains had favoured the releases of movies handled by their affiliated distribution companies, by giving them wider releases and longer theatrical runs.

Standout examples included CJ Entertainment’s 2012 hit “Masquerade,” and Lotte’s “The Taste of Money.” The FTC said that the two chains had also given out discount vouchers to third party films without the consent of the distributors.

“It’s meaningful because the commission is taking strong legal action for the first time against the unfair practices of large, vertical integrated cinema chains,” said FTC director Kim Jae-joong.

The FTC action follow years of complaints by producers’ and other trade associations and a probe by the Korean Film Council.

In response the Ministry of Culture said that it would more closely monitor the screening practises of the major groups.

Filed Under:

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Biz News from Variety

Loading