The government reflected support for movie discount coupons in this year's second supplementary budget proposal, leading to a surge in CJ CGV's stock price.
CJ CGV's shares were trading at 5,300 won in the KOSPI market at 9:16 a.m. on the 20th, up 10.53% (505 won) from the previous day. During the early session, the stock price even jumped to 5,580 won.
This appears to be due to being designated as a beneficiary of the second supplementary budget. The government included a plan to distribute 4.5 million coupons that discount 6,000 won per movie ticket for CGV, Lotte Cinema, and Megabox, by investing 27.1 billion won in the supplementary budget.
Additionally, 500,000 accommodation coupons that can be used at lodging apps like 'YeogIATE' and NOL (formerly Yanolja), 700,000 discount coupons for sports facility usage worth 50,000 won, 500,000 discount coupons for performances worth 10,000 won, and 1.6 million discount coupons for art exhibitions worth 3,000 won will also be distributed.
The supplementary budget proposal could change during the National Assembly review process. However, since the ruling party holds a majority, it is expected to adopt most of the government's proposal.
CJ CGV has seen a continued decline in its stock price as the film industry has faced prolonged stagnation following the COVID-19 pandemic. With the rise of online video services (OTT) represented by Netflix, CJ CGV is having difficulty improving its performance.