South Korea’s leading exhibitor, CJ-CGV is set to land in Russia. That makes CGV the first major foreign company in Russia’s exhibition market.
The company this week signed a deal to set up a joint venture with Russia’s ADG Group. ADG is a Russian real estate developer that has won contracts to reconstruct and renovate 39 older multiplexes in Moscow. CGV will operate in Russia by taking a total of 70% stake in the Hong Kong-based joint venture. The total amount of CGV’s investment is $21.7 million (KRW 24.5 billion).
According to CGV, the two companies will jointly start opening theaters in Moscow from 2018. They aim to operate a total of 160 screens in 33 complexes by 2020. That would make the venture company Moscow’s leading cinema operator based on number of theaters.
“Considering that (Moscow) is the hotspot through which we can expand to Europe, this new expansion to Russia means a lot for CJ-CGV’s territorial outreach,” said Suh Jung, CEO of CGV. “We will endeavor to spread Korea’s advanced multiplexes, ‘K-movies’ and eventually the excellence of the Korean culture in Russia.”
CJ-CGV is South Korea’s top cinema chain and currently the world’s fifth largest. It operates theaters in China, Indonesia, Myanmar, Turkey, U.S., and Vietnam.