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In relation to CGV's closure approximately three years after the end of COVID-19 restrictions, the Seoul Central District Court ruled that CGV must pay 15.32 billion won in rent to IBK. CGV claimed that it ceased operations at its Yeonsu CGV in Incheon last March due to management difficulties caused by COVID-19.
The court stated that while CGV exercised its legal right to terminate the lease under the Commercial Building Lease Protection Act, it found it difficult to recognize a causal relationship between the COVID-19 restrictions and the closure, given that the business ended nearly three years after the restrictions were lifted in May 2022. The judges acknowledged that CGV experienced a decline in audience numbers and revenue due to COVID-19, but explained that these circumstances did not constitute a significant change leading to the closure of the cinema.
Additionally, the court pointed out that post-COVID-19 revenue increases and the growth of the OTT industry also affected the decrease in audience numbers. Ultimately, the court concluded that CGV's termination of the lease was not valid and held it liable for damages for the remaining contract period. The final amount to be paid was determined to be 15.32 billion won.