South Korean Broadcaster JTBC Faces Debt Crisis as Court Freezes Assets and Claims

(Central News Agency reporter Yang Chi-fang, Seoul, June 16) South Korean broadcaster JTBC is facing a debt default and has recently filed for corporate rehabilitation along with several subsidiaries under the JoongAng Group in an effort to overcome its financial crisis. The Seoul Bankruptcy Court issued provisional measures and a comprehensive injunction today against JTBC and five other JoongAng Group companies.

According to Yonhap News Agency, JTBC announced a default on June 12 after failing to repay a 206 billion won (approximately NT$430 million) liquidity loan. JTBC cited rapid changes in the media landscape centered on digital media and OTT platforms as the primary reason, which has led to a significant contraction in the television advertising market.

Two days after JTBC's default announcement, on June 14, four subsidiaries of the JoongAng Group—JoongAng Holdings, Contentree JoongAng, JoongAng P&I, and Megabox JoongAng—filed for corporate rehabilitation. JTBC followed suit yesterday by submitting its own rehabilitation petition. Meanwhile, the 'JoongAng Ilbo' newspaper has opted for a Workout program (corporate financial restructuring).

According to court sources today, the Seoul Bankruptcy Court has issued provisional measures and a comprehensive injunction against JTBC and the four JoongAng Group subsidiaries.

The provisional measures are designed to prevent the companies from disposing of assets before the court decides whether to initiate formal rehabilitation proceedings, thereby avoiding preferential repayment to specific creditors. The comprehensive injunction prevents creditors from seizing key corporate assets through forced execution, provisional attachment, or auctions prior to the official start of rehabilitation.

Regarding the rehabilitation filings by JTBC and other JoongAng Group subsidiaries, Vice Chairman Hong Jung-doo held a press conference yesterday, stating: 'We have done our utmost to maintain operational stability, but due to worsening external economic conditions, downgraded credit ratings, and tightening financial markets, we were forced to make this difficult decision.'

Hong emphasized, 'Employees must be deeply shocked and anxious upon hearing this news. We will pursue all necessary measures to restore normal operations as quickly as possible and will make every effort to ensure job stability. I will fulfill my responsibilities to the very end.' He expressed hope that the rehabilitation process would protect broadcasting as a national asset and provide stability for partner companies and employees.

Hong also confirmed that core operations, including live broadcasts of the FIFA World Cup, will continue without interruption.

Separately, Park Jang-hee (translated pronunciation), representative director of JoongAng Ilbo, stated that the newspaper will pursue financial restructuring to maintain continuous content publication and uphold its public responsibilities as a media organization. (Edited by Tang Sheng-yang) 1150616

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