Kim Namgil, Park Bogum, Woo Dohwan New Project Buzz

Megabox JoongAng and four affiliated companies receiving court decisions to commence corporate rehabilitation proceedings have the film industry on edge regarding future repercussions. In particular, there are observations that the next lineup of Plus M Entertainment, which requires future investment and marketing, could be a greater variable than films immediately slated for release. The JoongAng Group entered rehabilitation proceedings across the group due to liquidity crises at its affiliates, including JTBC. While the Seoul Rehabilitation Court approved JTBC's application for the Autonomous Restructuring Support (ARS) program and has suspended its decision on whether to commence rehabilitation proceedings, it has decided to initiate rehabilitation proceedings for four affiliates: JoongAng Holdings, Contentree JoongAng, JoongAng P&I, and Megabox JoongAng.

This situation was triggered when JTBC declared a default on its debt by failing to repay a securitized loan of 20.6 billion won upon maturity. The court has notified the four affiliates for whom rehabilitation proceedings have been decided of the deadlines for filing and investigating claims, as well as the deadline for submitting rehabilitation plans. Megabox JoongAng must submit its rehabilitation plan by December 1, Contentree JoongAng by December 15, and JoongAng Holdings and JoongAng P&I by December 22.

The industry anticipates limited direct impact on director Na Hong-jin's new film 'Hope' as it has been pre-sold to over 200 countries and regions worldwide, securing a stable revenue structure. However, attention is focused on Plus M's upcoming lineup. This year, Plus M released films such as 'The Pilgrimage' starring Kim Nam-gil and Park Bo-gum, 'Tropical Night' starring Woo Do-hwan, Jang Dong-gun, and Lee Hye-ri, 'The Land' starring Yum Jung-ah, Cha Joo-young, and Kim Hye-yoon, and 'Pig Village' starring Ma Dong-seok.

While many of these films have already completed shooting and are in post-production, films require significant costs and preparation processes from production completion to release, including marketing, distribution, securing theaters, and developing promotional strategies. Unlike films already slated for release, the upcoming lineup still faces decisions regarding future investment execution, marketing strategies, and release schedules, making it more likely to be significantly affected by the rehabilitation proceedings.

Amid growing concerns in the film industry, the Korean Film Council has launched a 'Film Industry Damage Reporting Center' to respond to the situation. The center plans to establish countermeasures by receiving reports of financial damages, such as delayed settlements, as well as damages and suggestions from related industries due to the prolonged rehabilitation proceedings.