COEX Files Suit against Megabox for 10 Billion Won Rent

A disagreement on a rental charge between a multiplex movie theater enjoying a booming business in the Convention and Exhibition Center (located at Samsung-dong, Gangnam-gu, Seoul) and COEX, the landlord, is developing into a court dispute.

COEX, which is consigned for the trade center management, filed a suit at the Seoul Central District Court on Tuesday against Megabox Cineplex to raise its security deposit by more than 10 billion won. Megabox Cineplex is running a multiplex movie theater in two rented underground floors in the trade center.

In its lawsuit, the COEX insisted, “When we rented out the two underground floors of approximately 3,200 pyong on July 1998, the deposit money was 15 billion won, but it was agreed that we would adjust the amount according to the price index and the profits made. Megabox Cineplex made more than 10.5 billion won last year in business profit. Considering the profit increase it has enjoyed, the appropriate deposit money should be about 34.8 billion won.”

COEX said, “We will request 10 billion won for now. We will increase the amount after confirming the management records of Megabox Cineplex.”

Regarding this, Megabox Cineplex said, “We could have agreed on a 15 percent or so increase. However, the amount that COEX asked from us was too large to proceed further in the negotiation.”

Ji-Seong Jeon verso@donga.com