South Korea's leading daily newspaper, **JoongAng Ilbo**, has officially entered the process of selling its management rights, marking a critical step in its efforts to resolve a deepening financial crisis. The newspaper, which previously applied for a "workout" (corporate restructuring) program, confirmed that its self-improvement plan submitted to creditor banks includes the sale of the main shareholder's management stake. JoongAng Ilbo stated that this move is a necessary measure to successfully complete the restructuring and prepare for a future rebound.
The financial turmoil originated on **June 12**, when the media group's affiliate, **JTBC**, defaulted on its debt obligations. This event triggered a cascade of insolvency filings, with five other group affiliates—including Central Holdings, Contentry Central, Megapark Central, and Central P&I—subsequently requesting court-led recovery proceedings. JoongAng Ilbo itself was unable to meet an early repayment demand for corporate bonds worth **22 billion won**, leading to its own default and subsequent entry into the workout program.
In addition to the management sale, the newspaper plans to boost its liquidity by approximately **66.4 billion won** through the sale of its real estate holdings, subsidiary companies, and other cost-cutting measures. Market analysts suggest that the management rights premium could reach as high as **200 billion won**, with preliminary discussions already underway with multiple potential buyers.
A significant controversy has emerged regarding the sale of the group's corporate bonds and commercial paper to individual investors just before the defaults. JoongAng Ilbo had issued **50 billion won** of public corporate bonds in February, while JTBC issued **93 billion won** of unsecured bonds; both were rated **BBB** by credit agencies at the time. However, the situation deteriorated rapidly within months, resulting in the loss of interest benefits for four JoongAng Ilbo bond issues totaling **137 billion won**.
The Financial Supervisory Service (FSS) has launched an investigation into the issuance and sales processes, with FSS Director **Lee Chan-jin** stating that the bonds were likely sold directly to retail investors prior to the
