This article appeared on Signal, the capital market compass, at 2:38 p.m. on May 13, 2026.
Contentree JoongAng (036420), the media content production affiliate of JoongAng Group, has issued a corporate bond with a three-month maturity. While commercial paper (CP) or electronic short-term bonds are typically used for such funding, the company's short-term credit rating has fallen to levels approaching speculative grade, weakening its negotiating power for smooth external financing.
According to investment banking (IB) industry sources on Tuesday, Contentree JoongAng raised 38 billion won through a private placement of corporate bonds the previous day. The move came as corporate bonds issued last year matured on Monday, raising the need for refinancing. After first entering the private placement market in May 2025, Contentree JoongAng had consistently used one-year corporate bonds, but this time opted for a three-month maturity, accepting an interest rate of around 8 percent.
Market participants cited this as evidence that Contentree JoongAng's external funding conditions have deteriorated. Korea Investors Service and Korea Ratings downgraded the company's short-term credit rating from "A3-" to "B+" on the 8th of this month. Under Korea Investors Service's evaluation framework, a "B+" rating signifies that uncertainty surrounds the ability to repay in a timely manner, carrying significant speculative elements. Since it was unclear whether CP or electronic short-term bonds would be absorbed in the market, the company appears to have chosen private placement bonds, which can bypass credit rating evaluations, as its funding instrument.
With its negotiating power for external funding weakened, attention is also focused on whether the company can secure 409.8 billion won within one month. The company has postponed to June 30 payments of 121.5 billion won in early redemption of private convertible bonds (CBs) and 36.8 billion won needed to acquire a stake in content production company Imaginus. The payment date for the 170 billion won in investment funds that must be returned to financial investors (FIs) due to the failed initial public offering (IPO) of subsidiary SLL JoongAng has also been extended from May 12 to June 12. As the drop in short-term credit ratings halted the refinancing of asset-backed short-term bonds (ABSTB) issued by subsidiary Megabox JoongAng, the company also needs 81.5 billion won in buffer funds by June under a funding support agreement.
The fact that JoongAng Group has begun improving its financial health is seen as a positive factor. JoongAng Group is reportedly reviewing a sale-and-leaseback financing plan involving the bulk sale of the JoongAng Ilbo and JTBC building and Ilsan Studio, followed by leasing them back. As Contentree JoongAng's consolidated current assets stood at just 391.8 billion won at the end of last year, the company is closely watching group-level support measures.
