CJ CGV, Lotte Cinama and Megabox were fined for colluding on movie ticket prices.
The Fair Trade Commission said Sunday that the three major multiplex cinema chains and five film distributors were fined 6.9 billion won ($6.9 million) in total. The antitrust watchdog said that the theaters earned approximately 15 billion won of unscrupulous profit from the collusion.
The movie distributors are CJ Entertainment, Mediaplex, Lotte Entertainment, Cinema Service and Buena Vista SonyPictures Releasing of Korea.
``We strictly reviewed the case since cinema-going is a cultural activity for the low- and mid-income class,'' the commission said in a release. ``We hope this corrective measure will help the principle of free competition in the market.''
CGV and Lotte said that they will not appeal the commission's decision.
According to the commission, the multiplex chains and film distributors had a meeting on March 12. The distributors then sent an official letter to the cinemas to stop offering morning- or night-time discounts or youth discounts without consulting each other.
CJ Entertainment received the heaviest fine (2 billion won). CJ CGV and SonyPictures followed with 1.6 billion won and 1.4 billion won, respectively
Multiplex chains have prospered in Seoul and other big cities in Korea since the late 1990s. They usually charge between 6,000 won and 10,000 won and offer various discounts in partnership with credit card and telecom companies.
indizio@koreatimes.co.kr