JTBC, JoongAng Holdings, and 3 Others File for Rehabilitation: "Sincere Apologies"

[Anchor]

Key affiliates of the JoongAng Group, including JTBC, have filed for corporate rehabilitation procedures. Separately, the JoongAng Ilbo announced that it will enter a workout program. Hong Jeong-do, Vice Chairman of JoongAng Group, bowed his head in a press conference, apologizing for causing public concern.

Reporter Bae Junu has the story.

[Reporter]

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

[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 this situation and for the public concern it has created.]

The five companies that filed for rehabilitation are the holding company, key affiliate 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 other stakeholders of JTBC, Megabox, and Contentree JoongAng.]

Credit rating agencies have downgraded JTBC's credit rating to 'D', the lowest level, which indicates a state of default on principal or interest payments.

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

Analysts suggest that the liquidity crisis at the group level was triggered by a rapidly changing media landscape dominated by OTT services and YouTube, which led to a contraction in the TV advertising market—already constrained by various regulations—compounded by the burden of massive content investments and accumulated debt.

The Broadcasting, Media and Communications Commission stated that it will closely monitor the financial situation during the upcoming license renewal review for JTBC.

[Kim Jong-cheol/Chairman, Broadcasting, Media and 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 looking at this very closely.]

The Seoul Bankruptcy Court will decide whether to commence the procedures over the next month or so. If the court determines that there is no possibility of rehabilitation, it may declare bankruptcy.

(Reported 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.