Exclusive
'Turning Movie Theaters into Ice Rinks': The Current Status of Megabox's New Business Venture

[비즈한국] Megabox is pushing into the ice rink business, drawing significant attention to the background of this move. The Megabox Kintex branch is currently converting its 'Comfort Hall 1' into an ice rink. It is interpreted as a new business venture aimed at improving financial performance. Megabox ceased operations at six locations nationwide last year due to financial difficulties. However, success is not guaranteed, as there is already a One Mount Ice Rink located near the Megabox Kintex branch.

The Comfort Hall 1 at the Megabox Kintex branch ended operations in September of last year. It was the fourth-largest screening hall among all Megabox theaters nationwide. At the time of the closure, the Megabox Kintex branch stated on its website, “Comfort Hall 1 at the Kintex branch will cease operations after September 24, 2024,” adding, “We thank our customers who have cherished Comfort Hall 1, and we ask for your continued interest and support for the theater as it transforms into something new.”

Bizhankook’s investigation revealed that the Megabox Kintex branch is currently converting the former Comfort Hall 1 into an ice rink. Bizhankook visited the branch on the 6th. The area was under construction and off-limits to the public. An employee encountered on-site said, “Construction began about one to two months ago,” adding, “I don’t know when the ice rink will open.”

It is understood that Mega Ice Box will manage the ice rink operations. Mega Ice Box is a subsidiary established in May last year by Megabox JoongAng (the operating entity of Megabox). According to the corporate registry, Mega Ice Box is headquartered at the Megabox Kintex branch. Nam Joo-hyun, former CEO of Contentree JoongAng036420, serves as the CEO of Mega Ice Box.

Megabox’s ice rink business is viewed as an attempt to improve its bottom line. Megabox JoongAng recorded operating losses of 7.9 billion won and 14 billion won on a separate basis in 2022 and 2023, respectively. This stands in contrast to its competitor, CJ CGV079160, which recorded an operating profit of 8.5 billion won on a separate basis in 2023. Megabox JoongAng did manage to turn a profit in the third quarter of 2024, recording an operating profit of 586 million won.

However, the success of Megabox’s ice rink business cannot be guaranteed. The One Mount Ice Rink is located less than 1km away from the Megabox Kintex branch. Furthermore, ice rinks are not necessarily high-profit businesses. Even One Mount itself has been suffering from financial difficulties, recording deficits for several years.

The decline in Megabox JoongAng's performance could negatively impact the JoongAng Group as a whole. Contentree JoongAng, a drama and film production affiliate, creates synergies with Megabox JoongAng. Of the 23.5 billion won in revenue recorded by Contentree JoongAng on a separate basis for the first three quarters of 2024, 7.5 billion won (32.12%) was generated from Megabox JoongAng. As the number of Megabox theaters shrinks, the space available to screen films produced by Contentree JoongAng also decreases. In fact, Megabox JoongAng ceased operations at six branches last year, including Suwon Yeongtong, Gyeongju, Jeonju Songcheon, Gangnam-daero, Paju Publishing City, and Ilsan.

The financial performance of Megabox JoongAng and Contentree JoongAng could also affect the standing of Hong Jung-in, CEO of Megabox JoongAng and the second son of JoongAng Group Chairman Hong Seok-hyun. CEO Hong currently holds the position of CEO at both Megabox JoongAng and Contentree JoongAng. Like Megabox JoongAng, Contentree JoongAng has recently struggled; it recorded an operating loss of 68.1 billion won in 2023 and a loss of 29.4 billion won in the first three quarters of 2024.

For CEO Hong, improving the performance of both entities is necessary to solidify his position within the JoongAng Group. If the downward trend continues, his influence will inevitably weaken. If the ice rink business pushed by Megabox JoongAng fails to meet expectations, doubts regarding CEO Hong’s management capabilities will follow.

Furthermore, CEO Hong is in a difficult position regarding ownership. The shareholders of JoongAng Holdings, the holding company of JoongAng Group, are composed of: Vice Chairman Hong Jeong-do (eldest son of Chairman Hong Seok-hyun) at 55.80%, CEO Hong Jung-in at 37.20%, and Chairman Hong Seok-hyun at 7.00%. CEO Hong does not personally hold shares in either Contentree JoongAng or Megabox JoongAng.

Megabox JoongAng has also entered other new business sectors. In July 2023, the company acquired Playtime JoongAng from its parent company, Contentree JoongAng. Playtime JoongAng is a kids' cafe operator that owns brands such as 'Champion' and 'Sangsang Nori.' Playtime JoongAng contributes to the group’s performance by generating billions of won in profit annually.

Nonetheless, the future of Megabox is not necessarily bright. Park Won-woo, a senior researcher at Korea Ratings, commented on Megabox JoongAng: "Given the slower-than-expected recovery in demand for movie-going, the possibility of demand returning to pre-COVID-19 pandemic levels in the short term is limited."

A subtle atmosphere is also flowing within the JoongAng Group regarding Megabox JoongAng. In his 2025 New Year's address, JoongAng Group Vice Chairman Hong Jeong-do stated, "Please focus on strengthening the fundamentals of the cinema business itself and improving profitability for Megabox." Some interpret this as an instruction from Vice Chairman Hong to focus on the core theater business rather than pursuing new ventures.

Bizhankook contacted Megabox JoongAng to hear their position on this matter, but did not receive a response.