5 Entities Including JoongAng Holdings and JTBC File for Corporate Rehabilitation; Media Regulator to Monitor Re-approval Process

The Broadcasting, Media and Communications Commission (BMCC) stated that it is closely monitoring the liquidity crisis following the filing for corporate rehabilitation by five companies, including the holding company JoongAng Holdings, just two days after JTBC defaulted on its debt.

The BMCC indicated that it will examine the financial situation as a key evaluation item, given that JTBC is subject to a re-approval review (with the previous term having expired on November 30, 2025).

Kim Jong-cheol, Chairman of the BMCC, addressed questions regarding JTBC's management crisis during a press conference held today (June 15) at the Gwacheon Government Complex to mark his six months in office, stating, "As the competent authority for the broadcasting sector, we are closely monitoring the situation," and added, "I have instructed the secretariat to grasp the situation and continue monitoring."

Chairman Kim said, "As far as we have confirmed, this is primarily a matter of financial normalization and a liquidity crisis, and we understand that this itself will not have an immediate, direct impact on the broadcasting business operations."

However, he also hinted at plans to scrutinize the financial situation, noting that JTBC is subject to a re-approval review.

"JTBC is subject to the re-approval process, and since financial and technical evaluations are included as key assessment criteria in that process, we will be paying close attention," Chairman Kim emphasized.

Following the filing for rehabilitation by four companies—Contentree JoongAng, Megabox JoongAng, JoongAng Holdings, and JoongAng P&I—yesterday afternoon (June 14), JTBC also filed for rehabilitation this afternoon, bringing the total number of companies involved to five.

The Seoul Rehabilitation Court has assigned the case to the 2nd Rehabilitation Division (Presiding Judge Jung Jun-young), and the court will determine whether to commence rehabilitation proceedings by assessing whether the five applicant companies have the value to continue operations.

In principle, if the court determines there is no possibility of rehabilitation, it may declare bankruptcy.

The decision on whether to commence rehabilitation proceedings is typically made within two to three weeks.

JTBC failed to repay 20.6 billion won in asset-backed loans on the 12th, which led to a downgrade in its credit rating.
※ Please note: This article was translated by AI and may contain errors.