(MENAFN) South Korea's major cinema chain, CJ CGV, is progressing to join the Russian market for the first time in the history of foreign theater chain. The chain has signed a contract with Russian land developer ADG Group on Monday in Seoul so as to arrange a joint venture in Hong King with registered capital with the worth of US$30 million, while a requirement of 70 percent stake will be in favor of the South Korean Company.
The contract states that a total of 33 theaters and 260 screens will be constructed by the two companies in Moscow by the year 2020. The company released the following statement: "through this contract, we have secured a base to open theaters in Moscow in a stable manner and to expand to adjacent areas while reducing the financial burden, we expect CJ CGV to be the largest cinema chain in Moscow in 2020."
Ever since South Korea first announced the opening of its first theatre overseas in Shanghai in October 2006, CJ CGV pushed its limits intensely in order to spread out the business outside that it already established itself in China, the United States, Vietnam, Indonesia, Myanmar and Turkey. By 2020, CJ CGV -the fifth major cinema complex company around the globe- is aspiring to maneuver 10,000 screens worldwide.
The company's chief executive officer, Seo Jung, stated that "this is an important step in expanding the territory of CJ CGV, as Russia is a major base from which to enter Europe in the long term, we'll make efforts to spread Korea's advanced multiplex theaters and increase the world's awareness of the superiority of Korean movies and culture."
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