There is intense interest in whether a major seismic shift will occur in the South Korean newspaper industry, potentially toppling the long-standing dominance of the JoongAng, Chosun, and Dong-A Ilbo newspapers.

The first shot was fired by the JoongAng Ilbo.

The JoongAng Ilbo, which has been struggling with financial difficulties, has finally applied for workout.

The JoongAng Ilbo released a statement on the 19th announcing, "We have officially applied for workout (corporate restructuring) to our main creditor, Hana Bank."

Although it is a path chosen instead of court receivership, there are predictions that JoongAng Ilbo's financial difficulties will not be easily resolved.

According to the Financial Supervisory Service's electronic disclosure system, 22 commercial papers (CPs) worth 22 billion won, held by Hanyang Securities, were presented for payment at Hana Bank's Seosomun branch the previous day. However, due to insufficient deposit balance, they could not be paid, and ultimately, a first default was processed.

The JoongAng Ilbo had previously disclosed regarding the CP repayment request at the time, "We confirm that a first bill default was processed as of the 18th due to our inability to pay the settlement amount due to insufficient deposits." Regarding Hanyang Securities' early repayment request, it had reiterated, "(Individual early repayment) is contrary to principles of fairness."

Subsequently, on the 19th, the 22 billion won worth of CPs were processed as a final default.

The JoongAng Ilbo stated, "We will continue to consult with the creditors and diligently prepare effective debt restructuring and business normalization plans."

JoongAng Group, the parent company of JoongAng Ilbo, had previously filed for commencement of rehabilitation proceedings with the court for five group companies, including JTBC and the holding company JoongAng Holdings, on the 14th-15th as liquidity crisis deepened.