Uhm Jung-hwa's OK Madam 2 kicks off CGV Pictures' film push

Uhm Jung-hwa's 'OK Madam 2' Marks First Distribution Launch

CJ CGV, the top multiplexer in Korea, is expanding its business beyond theater operations into the realm of content distribution. CGV recently established the investment and distribution company 'CGV Pictures' and has begun its full-scale operations. The first official release is the comic action film 'OK Madam 2', starring Uhm Jung-hwa, which is set to open next month. Having demonstrated its distribution capabilities through titles such as 'The Divine Band' and 'My Name', CGV is signaling its official launch with this project.

Targeting Mid-Budget 'Middle-Class' Films

CGV Pictures has a clear target. Rather than massive blockbusters requiring huge capital, the company will focus on targeting so-called 'middle-class' mid-to-low budget commercial films. For the second half of this year, the company aims to release 'Not Too Late', starring actors Byun Yo-han, Ahn Jae Hong, and Ha Yoon-kyung. The strategy is to secure a sufficient number of works by building a lineup capable of filling the gaps in the market.

A representative from CGV Pictures stated, "As the film industry has entered a slump, there is currently a shortage of new releases. CGV Pictures will take on the role of filling the market void with reliable 'middle-class films.'"

Reinforcing the Collapsed Film 'Backbone' and the Challenge of Vertical Integration

Since the COVID-19 pandemic, the Korean film production environment has shrunk, leading to a decrease in the supply of new works. Amid diagnoses that the 'backbone' of Korean cinema has collapsed due to a sharp decline in mid-to-low budget film production compared to the past, the establishment of CGV's distribution arm is being evaluated as a potential way to present a new path for the film industry.

Film critic Yoon Seong-eun noted, "In a situation where the number of annual releases has plummeted compared to the past, the attempt to increase middle-class films is something the film industry cannot help but welcome, and it is encouraging for filmmakers as well. It appears they will build a lineup centered on IPs that have proven popularity or high box office potential, such as 'OK Madam 2.'"

However, concerns exist that if the structure of simultaneously operating a theater chain and a distributor is strengthened, issues regarding vertical integration—prioritizing in-house content in their own theaters—could arise. The fact that this overlaps with the business territory of CJ ENM, a major existing investment and distribution player, is also drawing attention within the industry. Meanwhile, CGV plans to seek synergy models that provide a differentiated viewing experience by combining its technology-specialized infrastructure, such as 4DX and ScreenX, with its distributed content.