JoongAng Group Vice Chairman Hong Jeong-do: "Rehabilitation Filing Inevitable… Apologies to Creditors and Shareholders"

JoongAng Group Vice Chairman Hong Jeong-do bowed his head in apology, stating, "I am sorry for causing such trouble," regarding the decision by JoongAng Holdings, the holding company of JoongAng Group, and several affiliates including the general programming channel JTBC to file for rehabilitation procedures due to a liquidity crisis.

Vice Chairman Hong held a press conference at the main auditorium on the 3rd floor of the JoongAng Ilbo Building in Mapo-gu, Seoul, this afternoon (June 15). He stated, "We have done our best to ensure management stability, but due to various reasons, including the worsening external economic environment and a credit crunch caused by credit rating downgrades, we were left with no choice but to make this inevitable decision today."

Five companies, including the holding company JoongAng Holdings, JTBC, Contentree JoongAng, Megabox JoongAng, and JoongAng P&I, filed for rehabilitation procedures with the court consecutively yesterday and today.

"I once again offer my sincere apologies to the numerous creditors, shareholders, and other stakeholders," Hong said, bowing his head again. "I will make the recovery of your losses our top priority and do my utmost until the end."

He also added, "I believe our employees are also in great shock and feeling very anxious about this situation. We will take all necessary measures for a swift normalization and make every possible effort to ensure job security."

Vice Chairman Hong stated, "I want to make today's rehabilitation filing a new beginning to preserve the national asset that is 'broadcasting' and to provide a sense of stability to our business partners and employees alike. I will do my best to fulfill my duties until the end."

Furthermore, he added, "The company's core operations, including the broadcasting of the North and Central America World Cup, will continue to operate normally without interruption."

Previously, JTBC declared a default on June 12 after failing to repay a total of 20.6 billion won in securitized borrowings upon maturity.

JTBC explained that this was due to the significant contraction of the TV advertising market as the media landscape rapidly shifts toward digital and over-the-top (OTT) streaming services.

Following this, domestic credit rating agencies, including NICE Investors Service and Korea Ratings, simultaneously downgraded the credit ratings of JTBC and JoongAng Ilbo.

In an email sent to employees on the same day, Vice Chairman Hong also stated, "Due to accumulated financial burdens and the prolonged tightening of the capital market, we have inevitably filed for rehabilitation procedures with the court. As the top management of JoongAng Group, I offer my sincere apologies to all employees."

He added, "Moving forward, the management will cooperate closely with the court and relevant agencies to promptly improve our financial structure and concentrate all our capabilities on achieving management stability, including the normalization of trading for listed companies. As the top executive, I bear a heavy sense of responsibility and will exert every effort for the normalization and resurgence of JoongAng Group."

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.