JTBC Headquarters

Facing severe criticism as 'the epitome of fake news' and experiencing a liquidity crisis, JTBC has ultimately entered rehabilitation proceedings. Hong Jung-do, Vice Chairman of JoongAng Group, bowed his head and apologized, stating, "We are sorry for causing trouble."

At a press conference held on the 15th in the grand auditorium on the 3rd floor of the JoongAng Ilbo Building in Mapo-gu, Seoul, Vice Chairman Hong stated, "We have done our utmost for management stability, but due to various reasons including the worsening external economic conditions and funding crunch caused by the downgrade of our credit rating, we have been compelled to make this unavoidable choice today."

Vice Chairman Hong continued, "I sincerely apologize once again to numerous creditors, shareholders, and all stakeholders," and bowed his head again, saying, "We will make the recovery of your losses our top priority and do our best until the end."

Hong Jung-do, Vice Chairman of JoongAng Group, reads an apology statement at a press conference held on the 15th at the JoongAng Ilbo Building in Mapo-gu, Seoul, regarding the commencement of rehabilitation proceedings due to liquidity crisis of some JoongAng Group affiliates including JTBC. [Yonhap News]He added, "The employees of the company, who have been greatly shocked and are likely very anxious upon hearing about this situation, will be reassured. We will explore all necessary measures for rapid normalization and make every effort to ensure employment stability."

Vice Chairman Hong expressed his hope, "We want to make today's rehabilitation filing a new beginning to preserve the national asset of 'broadcasting' and to provide a sense of stability to all trading companies and employees," and stated, "I will do my utmost to fulfill my responsibilities to the end."

He also added, "Core business operations, including the broadcasting of the North, Central, and South American World Cup, will continue to operate normally without interruption," but the general consensus is that it remains to be seen whether there will be any actual impact.

On the 12th, JTBC declared a default by failing to repay a securitized loan amounting to 20.6 billion won upon maturity. The company cited the significant contraction of the TV broadcasting advertising market as the reason, amidst a rapidly changing media environment centered around digital and over-the-top (OTT) services.

Domestic credit rating agencies, including NICE Investors Service and Korea Investors Service, have jointly downgraded the credit ratings of JTBC and JoongAng Ilbo.

JoongAng Ilbo [Yonhap News]

Meanwhile, Park Jang-hee, CEO of JoongAng Ilbo, released a statement this afternoon stating, "As the parent company of the group, I feel a profound sense of responsibility for the current situation." He added, "JoongAng Ilbo is pursuing workout proceedings to maintain the continuity of content publication and to perform its public duty as a media organization without interruption."

CEO Park explained, "Unlike court receivership, which is court-led, workout is a process of management normalization that resolves temporary liquidity issues and improves the financial structure through consultation with creditors." He further clarified, "JoongAng Ilbo is an independent entity, managed separately from the affiliates that have applied for court receivership, and the pursuit of workout is a self-help effort to preemptively block affiliate risks."

He also added, "JoongAng Ilbo promises to continue to faithfully carry out its core activities as a media organization, including newspaper publication and digital reporting, without change."