 |
| ▲ (Yonhap) |
SEOUL, Oct. 12 (Yonhap) — About 2.5 billion won (US$1.8 million) in damages has been reported in connection with delayed settlements following Megabox Central's rehabilitation proceedings, a lawmaker said Monday.
According to data Rep. Lee Jae-jung of the ruling Democratic Party, a member of the National Assembly's Culture, Sports and Tourism Committee, obtained from the Ministry of Culture, Sports and Tourism and the Korean Film Council, the damage reported to the council's center for victims of Megabox Central's rehabilitation proceedings totaled about 2.46 billion won as of the end of August.
The amount represents settlement payments that were delayed before June 14, when Megabox Central filed for rehabilitation proceedings. Unpaid claims incurred by that date have been classified as rehabilitation claims and will be repaid according to the court-approved rehabilitation plan.
There were 28 reported cases, 21 of which, or 75 percent, involved consignment cinemas. Three cases involved marketing agencies, two involved distributors and two fell into other categories.
Of the 21 consignment cinemas reporting damage, nine were in Gyeonggi Province, the largest number by region. Three were in North Chungcheong Province, two each in Incheon and Jeju, and one each in Gwangju, South Jeolla Province, Busan, North Jeolla Province and South Gyeongsang Province.
Consignment cinemas are theaters operated by separate entities under contracts with Megabox. Payments made by customers through telecommunications companies or simple-payment services are first transferred to the headquarters and then settled with the individual cinemas.
As Megabox Central recently filed for rehabilitation proceedings amid a liquidity crisis at Central Group, some sales proceeds owed to consignment cinemas, distributors and marketing agencies have been tied up as rehabilitation claims, delaying settlements.
The culture ministry and the Korean Film Council are operating a center to receive reports of related damages and are also providing legal consultations on matters including the filing of claims.
Separately, the Korean Film Council surveyed 105 distributors in June to determine unpaid screening fees owed by Megabox Central. The survey found that 23 companies had unpaid amounts totaling about 5.26 billion won across 52 films.
Distributors typically receive about half of ticket sales from theaters 45 days after a film's theatrical run ends. If settlement delays persist, small and midsized distributors that operate on proceeds from distributing just one or two films could face cash-flow shortages, potentially affecting partner companies such as public relations and marketing agencies and design firms.
"Megabox's rehabilitation proceedings are not merely a management issue for a single company, but a matter that could affect the flow of funds for local consignment cinemas and small and midsized film distributors, importers and marketing companies," Lee said.
"The Ministry of Culture, Sports and Tourism and the Korean Film Council should continue to monitor the scale of the damage and the progress of the rehabilitation proceedings and actively consider necessary measures to prevent the burden from spreading, particularly to small and micro-sized businesses in the film industry with limited financial resources," he said.
[Copyright ⓒ K-VIBE. All rights reserved. Unauthorized reproduction and redistribution are prohibited.]
