Distributors and franchise theaters receive guidance on corporate rehabilitation procedures and creditor claim filings, with legal consultation support running through September.

The Korean Film Council (KOFIC, Chairperson Han Sang-jun) will hold a "Briefing Session on Response to Megabox JoongAng Rehabilitation Proceedings" on July 29 (Wednesday) at 2 p.m. in the first-floor conference room of the Film Education Support Center in Mapo-gu, Seoul, for distributors, franchise theaters, and other film industry stakeholders.

The briefing session was organized to provide accurate guidance on rehabilitation proceedings to film industry stakeholders who need to prepare for related procedures — including unsettled payments and creditor claim filings — following the commencement of rehabilitation proceedings for Megabox JoongAng, and to offer distributors, franchise theaters, and other affected companies the response measures needed to exercise their rights within the designated period.

The session is expected to be attended by officials from the Ministry of Culture, Sports and Tourism and KOFIC, LIN LLC, and representatives of investment/distribution companies and franchise theaters involved in the Megabox JoongAng rehabilitation proceedings. Attorney Choi Hyo-jong of LIN LLC will explain the basic structure of rehabilitation proceedings, including ▲the distinction between rehabilitation claims and common benefit claims, ▲creditor claim filing procedures, ▲the exercise of setoff rights, and ▲creditor response measures at each stage of the rehabilitation process.

The deadline for submitting the creditor list in the Megabox JoongAng rehabilitation proceedings is August 4 (Tuesday), and the period for filing rehabilitation claims runs from August 5 (Wednesday) to September 1 (Tuesday). Creditors should check whether their claims are recorded in the creditor list submitted by the administrator, and if a claim is omitted or there is a discrepancy in the claim amount or details, they must complete the necessary procedures within the filing period.

To support distributors, franchise theaters, and other affected companies in smoothly exercising their rights, KOFIC will operate legal consultation services on creditor claim filings through LIN LLC from August 3 (Monday) to September 2 (Wednesday). The consultations will focus on matters necessary for responding to the rehabilitation proceedings, including confirming whether claims are listed in the creditor list, reviewing claim amounts and the nature of claims, determining the necessity of separate filings, and guidance on claim filing methods and required documents.

KOFIC also plans to produce and distribute guidance materials reflecting the questions raised at the briefing session and the results of legal review. Through this, the agency will help film industry stakeholders who were unable to attend the briefing session to also check the key schedule of the rehabilitation proceedings and how to respond to creditor claim filings.

In addition, KOFIC will provide information on support programs for small and medium-sized enterprises and small business owners, as well as consultation channels at related agencies such as the Korea SMEs and Startups Agency (KOSME) and the Small Enterprise and Market Service (SEMAS), for use by affected companies experiencing difficulties in fund management and business operations. Whether individual support programs are provided will be determined through each agency's application requirements and review process.

Chairperson Han Sang-jun stated, "We take very seriously the difficulties and uncertainty that film industry stakeholders are experiencing due to the Megabox JoongAng rehabilitation proceedings," adding, "We hope this briefing session and legal consultations will be of practical help to each company in understanding the complex rehabilitation process and exercising their rights in a timely manner." He added, "KOFIC will minimize confusion in the industry through the provision of accurate information and field-oriented support, and will continue to faithfully fulfill its role, together with the Ministry of Culture, Sports and Tourism, in helping film industry-related companies respond appropriately to the rehabilitation proceedings."

KOFIC will continue to operate a damage report center, ongoingly monitor industry difficulties and the progress of the rehabilitation proceedings, and work closely with the Ministry of Culture, Sports and Tourism to review necessary response measures.

Published under Public Domain Mark (Korea Open Government License — Attribution). For further inquiries regarding this release, please contact the person in charge. Source: Korean Film Council (KOFIC).

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