The Seoul Bankruptcy Court has decided to initiate rehabilitation proceedings for JTBC.

Back in June, JTBC declared a default after failing to repay 20.6 billion won in borrowings, and has since been undergoing an autonomous restructuring program.

The court determined that the company's financial difficulties worsened due to a shrinking broadcasting advertising market compounded by spending on Olympic broadcasting rights fees.

JTBC stated, "We will do our utmost to normalize management through a swift sale."