Movies industry braces for tension as Megabox seeks to recover…KOFICE to help with debt claims by next month’s 2nd

Movies industry hit by Megabox liquidity crunch…KOFICE mounts emergency response by Aug. 4 'deadline'

Claim filing for rehabilitation debts begins Aug. 5, with an all-out effort to minimize damage to small and mid-sized distributors and entrusted theaters

'Megabox' shakes the ecosystem… 'Korea Film Commission' steps in fully

A huge 'liquidity crisis' is being detected across the film industry following the start of 'rehabilitation proceedings' for 'Megabox', a key pillar in the domestic multiplex market. With small distributors and entrusted theaters scrambling to recover payments, 'Korea Film Commission' (hereafter KOFICE) has stepped in as a savior to prevent the collapse of the industrial ecosystem.

On the 29th, KOFICE urgently held an explanatory session on responding to the 'rehabilitation proceedings' at the Film Education Support Center in Mapo-gu, Seoul, targeting companies worried about potential damage such as distributors and entrusted theaters. Choi Hyo-jong, an attorney at law firm Lin, led the presentation, pointing out gaps in complex legal procedures and laying out step-by-step survival strategies, from filing claims to exercising setoff rights.

The most urgent task is to seize the golden window for securing claims. KOFICE warned that the deadline for the court-appointed administrator’s 'creditor list' submission is fast approaching—Aug. 4—and strongly urged companies to exercise their rights during the rehabilitation-debt claim period running from Aug. 5 to Sept. 1. The key point is that if claim amounts are missing or inconsistent on paper, companies could lose opportunities for legal relief.

A comprehensive follow-up safety net is also being put in place for those who could not attend in person. KOFICE will open a one-on-one legal counseling desk linked with law firm Lin for one month, from Aug. 3 through Sept. 2. It plans to provide close support not only in reviewing whether to include information on the 'creditor list', but also in identifying the nature of claim amounts and drafting required submission documents.

Along with that, it employs a two-track strategy that connects financial support programs from relevant organizations such as the Korea Micro, Small and Medium Venture Business Corporation for small businesses facing immediate bankruptcy threats due to the 'liquidity crisis'. The aim is to block early the wave of fear over cascading defaults across the industry that spread right after 'Megabox' knocked on the court’s door last month amid the Central Group’s funding crunch.

KOFICE said it is operating a damage-claim receiving center around the clock and monitoring in real time the progress of the court’s 'rehabilitation proceedings'.

Han Sang-jun, chair of KOFICE, said, "We will minimize confusion within the industry through accurate information delivery and on-the-ground, hands-on support," adding, "By closely coordinating with the Ministry of Culture, Sports and Tourism, we will do our part to fulfill the commission’s responsibility so that related film-industry companies can get past this 'liquidity crisis'."