"Sincere Apologies": JoongAng Group Files for Corporate Rehabilitation

[Anchor]

Three days after JTBC’s default on its debt, the holding company of JoongAng Group and key affiliates, including JTBC, have filed for corporate rehabilitation with the court. Separately, the JoongAng Ilbo announced it would enter a workout program. Hong Jeong-do, Vice Chairman of JoongAng Group, bowed his head during a press conference, expressing his sincere apologies.

Bae Junu reports.

[Reporter]

JoongAng Group Vice Chairman Hong Jeong-do held a press conference today (June 15) to apologize for the filing of corporate rehabilitation procedures with the court by the group's holding company, JoongAng Holdings, and other entities.

[Hong Jeong-do / Vice Chairman, JoongAng Group: JoongAng Holdings and some of our affiliates have filed for rehabilitation procedures with the court. I am sincerely sorry for causing such trouble and leading to today's situation.]

The five companies that filed for rehabilitation include the holding company, as well as key affiliates JTBC, Megabox JoongAng, JoongAng P&I, and Contentree JoongAng.

Separately, the JoongAng Ilbo stated, "As the foundation of the group, we will enter a workout program—a corporate restructuring process—to ensure the uninterrupted fulfillment of our public duties as a media organization."

[Hong Jeong-do / Vice Chairman, JoongAng Group: I once again offer my sincere apologies to the numerous creditors, shareholders, and all stakeholders of JTBC, Megabox, and Contentree JoongAng.]

Credit rating agencies downgraded JTBC’s credit rating to 'D' today, the lowest possible grade, which indicates a state of default where the company is unable to pay principal or interest.

This marks the first time a general programming channel has filed for rehabilitation since such channels were launched in 2011.

Analysts suggest that the rapid shift in the media landscape toward OTT platforms and YouTube has led to a contraction in the TV advertising market, which is bound by various regulations. This, combined with the accumulation of debt from large-scale content investments, has resulted in a liquidity crisis at the group level.

The Korea Communications Commission stated that it would pay close attention to the financial situation during the process of JTBC’s license renewal review.

[Kim Jong-cheol / Chairperson, Korea Communications Commission: In the case of JTBC, the evaluation of financial and technical aspects is included as a key assessment item in the license renewal process. I want to emphasize that we will be monitoring this closely.]

The Seoul Bankruptcy Court will determine whether to commence the rehabilitation procedures over the next month. If the court deems that there is no possibility of rehabilitation, it may declare the companies bankrupt.

Reported by Bae Junu | Video by Kang Dong-cheol | Video Editing by Kim Jong-mi | Graphics by Choi Ha-neul
※ Please note: This article was translated by AI and may contain errors.