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This article appeared on the capital markets compass "Signal" at 17:14 on June 30, 2026.
JoongAng Ilbo, which has filed for a workout (corporate restructuring), is pursuing a sale of its management control. The move is seen as an extraordinary measure to sustain stable operations and swiftly restore financial health.
According to "JoongAng Ilbo Workout Creditor Convening Notice Reference Materials," obtained exclusively by Seoul Economic Daily on the 30th, JoongAng Ilbo is pursuing a sale of its major shareholder's controlling stake as a self-rescue plan to improve its financial structure. With the entire JoongAng Group mired in a liquidity crisis, the plan aims to separate credit risk among affiliates to secure financial independence and actively attract new capital. The sale is expected to proceed quickly.
An investment banking (IB) industry official said, "The owner's will is key, but the debt is at an unmanageable level," adding, "Early-stage discussions are under way with multiple potential buyers, including several construction firms, and a control premium of up to 200 billion won is being mentioned."
JoongAng Ilbo's largest shareholder is currently JoongAng Holdings, which holds a 64.73% stake. JoongAng Holdings Chairman Hong Seok-hyun is the second-largest shareholder with 15.63%, followed by CJ Olive Networks (9.24%) and JoongAng Hwadong Foundation (8.77%). A JoongAng Ilbo official said, "It is true that we are pursuing a sale of management control," explaining, "It reflects our will to successfully complete the workout and make a fresh leap forward."
Last year, JoongAng Ilbo posted sales of 321 billion won and operating profit of 17.5 billion won. Earnings before interest, taxes, depreciation and amortization (EBITDA) reached 26.2 billion won, up about 44% from the previous year (2024). The market, however, is focusing on hidden debt not shown on the financial statements.
The group-wide liquidity crisis is cited as the backdrop for JoongAng Ilbo's move to sell management control. Beginning with JTBC's default on June 12, funding-squeeze concerns became reality, and four affiliates—holding company JoongAng Holdings, Contentree JoongAng, Megabox JoongAng and JoongAng P&I—entered court receivership (corporate rehabilitation proceedings). On top of that, JoongAng Ilbo also failed to meet an early redemption request for 22 billion won worth of commercial paper (CP), ultimately being declared in default and getting caught up in the group-driven crisis.
JoongAng Holdings is the holding company at the apex of the JoongAng Group's governance structure. Vice Chairman Hong Jung-do is the largest shareholder with a 55.8% stake, Contentree JoongAng CEO Hong Jung-in holds 37.2%, and JoongAng Holdings Chairman Hong Seok-hyun holds 7%. Some observers note that since content-related subsidiaries such as SLL JoongAng will also ultimately be inevitable to sell, if JoongAng Ilbo is sold, the owner family will end up keeping only JTBC.
To improve its financial structure, JoongAng Ilbo plans to sell not only management control but also its real estate assets and subsidiaries. Through this, it aims to secure about 66.4 billion won in liquidity. In the reference materials, JoongAng Ilbo said, "We plan to strengthen our capital through continuous operating cash flow generation via intensive cost cuts, the sale of owned real estate, and the sale of our controlling stake."
Meanwhile, the Seoul Bankruptcy Court's Rehabilitation Division 2 (Chief Judge Jung Jun-young) decided on the same day to commence rehabilitation proceedings for the four JoongAng Group affiliates. The deadlines for submitting rehabilitation plans are December 1 for Megabox JoongAng, December 15 for Contentree JoongAng, and December 22 for JoongAng Holdings and JoongAng P&I. In the case of comprehensive programming channel JTBC, the court approved its application for the Autonomous Restructuring Support (ARS) program while deferring a court receivership decision until July 30.
