Cinema operator CJ CGV on Tuesday denied accusations that it violated antitrust law and took part in monopolistic operations in Vietnam.
“These allegations have already been investigated by the local antitrust watchdog, and have been found to be groundless,” a spokesman for CGV in Seoul told The Korea Herald.
“The reason we are the top operator in Vietnam is because we have brought in innovative elements from the Korean film industry that were received well by the Vietnamese public, not because of illegal behavior.”
(CGV Cinemas Vietnam Facebook)
CJ CGV is currently the largest operator of screens in Vietnam, with about 45 percent of market share in screening. It entered the market in 2011 by acquiring local operator Megastar.
In August last year, the Association to Publish and Popularise Vietnamese Movies sent a release to local media accusing CGV of unfair practices.
“CGV requires a high profit-sharing ratio for Vietnamese titles distributed by CGV to other cinemas. Meanwhile, CGV requires other distributors to accept a low profit-sharing ratio for Vietnamese titles that they distribute in CGV’s cinemas,” the association claimed.
This year, CJ CGV saw 472.2 billion won ($430.7 million) in revenues in the third quarter with 32.2 billion won in operating profits. Although revenues declined at its Korean businesses, the company saw a 11.9 percent on-year rise in revenues thanks to its businesses in China and Vietnam. According to industry reports, CJ CGV is preparing to list CGV Vietnam in Korea next year.
By Won Ho-jung (firstname.lastname@example.org