FTC Launches Price-Fixing Probe Into Three Cinemas
By Jane Han
Staff Reporter
The fair trade regulator is investigating the country's three biggest cinema operators over potential price-fixing of movie theater tickets, according to industry sources Saturday.
The probe comes just days after CJ, Lotte and Tongyang groups took turns raising ticket prices late in June.
Tongyang Group's Megabox was the first to up the box office price by 1,000 won in eight years, from the market standard 8,000 won to 9,000 won on July 26. Five days later, Lotte Cinema joined Megabox, and another two days later, CJ CGV followed suit.
Now, the nation's top three theaters charge the same amount again, stifling price competition among the leading players.
Operators said that the increase was necessary to shoulder the rising theater maintenance cost and make investments toward a fund aimed at supporting the domestic movie industry.
However, the Fair Trade Commission (FTC) is reportedly looking into the details of the price hike to clamp down on price-fixing.
FTC officials declined to comment on the investigation Sunday.
``A price increase was inevitable considering all sorts of rising costs and investments needed for long-term management,'' said one theater official, adding that the industry has been echoing the need for a price hike since last year.