MegaBox Settlement Funds Frozen.. Film Industry Solidarity: "Problem of Industrial Circulation Structure"

*This content was translated by AI.

Concerns are rising that the unpaid settlement funds issue arising from MegaBox Central's corporate rehabilitation proceedings could spread across the entire film industry. Amid this, the Film Industry Solidarity, composed of five film organizations, has called for measures to address the situation.

Recently, in a circular sent to various distributors, MegaBox Central instructed that unpaid settlement funds generated up to June 14, 2026, be classified as rehabilitation claims, while those generated between June 15 and 30 should be treated as public interest claims, requesting the issuance of tax invoices accordingly.

Accordingly, unpaid settlement funds incurred by June 14 will not be paid immediately but will be included in the rehabilitation process.

On the 8th, the Film Industry Solidarity issued an official statement, saying, "This is not merely a simple creditor issue between individual distributors and MegaBox Central. It is a problem where settlement funds that should return to production, import, and distribution companies from ticket sales already paid by audiences have been halted, directly affecting the production-distribution-screening circulation structure of the film industry."

It further emphasized, "If these settlement funds remain frozen for an extended period, small and medium-sized production, import, and distribution companies, as well as independent and art-house distributors, could face direct blows to their business continuity."

The Film Industry Solidarity stated, "For vulnerable and small-to-medium film businesses that are heavily affected—including small and medium-sized production, import, and distribution companies, independent and art-house distributors, entrusted screening operators, small-amount creditors, and labor-related and service-based creditors—separate protection measures should be considered within the rehabilitation process."

It then demanded five key actions: ▲ verification and public disclosure of the scale and scope of unpaid settlement claims; ▲ review of early repayment plans for vulnerable film businesses; ▲ promotion of differentiated and phased repayment of unpaid settlement claims; ▲ normal management and payment of public interest claims and new settlement funds; and ▲ improvement of systems to support affected companies and protect settlement funds.

Finally, it added, "The rehabilitation process of MegaBox Central is not just a problem of one company but reveals how fragile the circulation structure of the Korean film industry truly is. What is needed now is a responsible rehabilitation process and public measures that minimize harm to the industrial community. Protecting unpaid settlement claims is the starting point."

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*This content was translated by AI.