[Sportschosun reporter Baek Ji-eun] JTBC is facing the biggest crisis since its founding.
On the 12th, JTBC declared a default after failing to repay 20.6 billion won in asset-backed borrowings at maturity. The company said the sharp shift in the media environment toward digital platforms and OTT services has severely weakened the TV advertising market. On the 14th, it also filed for rehabilitation proceedings for ContentreeJoongAng and Megabox Joongang, affiliates of the JoongAng Group. Along with the petition to begin rehabilitation proceedings, ContentreeJoongAng and JoongAng Holdings also submitted a request for a comprehensive injunction and preservation measures.
Preservation measures are procedures that prevent the company from disposing of assets and repaying certain creditors in a biased manner. A comprehensive injunction is a measure that freezes claims so creditors cannot secure the company’s key assets through compulsory execution, provisional seizure, or auction before rehabilitation proceedings begin.
The amount of FI-related funds whose recovery has become uncertain due to the JoongAng Group's rehabilitation proceedings is estimated at at least 500 billion won, even under a conservative estimate. This includes investments by JKL Partners and Korea Investment Private Equity in the main body of ContentreeJoongAng, as well as pre-IPO investments by Praxis Capital Partners and Tencent affiliate Aceville in its subsidiary SLL Joongang.
As the JoongAng Group's liquidity crisis deepens, the use of corporate cards by employees at affiliates is also being suspended. Samsung Card and Hyundai Card have already been blocked, and corporate cards issued by Hana Bank, Shinhan, and others are expected to be suspended as well.
Kim Jongcheol, chairman of the Korea Media and Communications Commission, outlined his position on the situation at a meeting held on the 15th at Government Complex Gwacheon in Gyeonggi Province. Kim said, "Based on what we have confirmed so far, this is a liquidity crisis, and it is not a situation that directly affects broadcasting operations." He added, "I have instructed the secretariat to assess and monitor the situation. JTBC is a company subject to reapproval, and financial and technical evaluations are important items in the review process. We will examine those areas closely."
Jeongdo Hong, vice chairman of the JoongAng Group, also apologized amid the worst crisis.
Hong held an emergency press conference on the 15th at the JoongAng Ilbo building in Sangam-dong, Mapo-gu, Seoul, and said, "JoongAng Holdings and some affiliates have filed for rehabilitation proceedings with the court. We have done everything possible to stabilize management, but worsening external economic conditions and a credit downgrade that has led to a funding squeeze have left us with no choice but to make this unavoidable decision today. Once again, I offer my sincere apologies to the many creditors, shareholders, and other stakeholders of JTBC, Megabox, and ContentreeJoongAng. We will make restoring your losses our top priority and do our utmost to the very end."
He added, "Employees who have heard about this situation are also likely to be deeply shocked and very anxious. We will explore every possible measure needed for a swift normalization and make every effort to ensure employment stability. I want this rehabilitation filing to become a fresh start, one that preserves broadcasting as a national asset and gives confidence to our business partners and employees alike. I will do my utmost to fulfill my responsibilities to the end. The company’s core operations, including coverage of the 2026 FIFA World Cup, will continue without interruption." He bowed once again.
Reporter Baek Ji-eun silk781220@sportschosun.com
