[Edaily Reporter Kim Hyun-ah] As major affiliates of the JoongAng Group, including JTBC, enter corporate rehabilitation proceedings, attention is focusing on the future direction of restructuring and mergers and acquisitions (M&A). Legal experts view this situation not as a mere liquidity crisis, but as a case reflecting structural changes across the media industry as a whole.

Lee Min-kyu, managing partner at HanSu Law Firm (specializing in insolvency), issued a statement on the 17th, highlighting that the most significant feature of this rehabilitation process is that the holding company, Joongang Holdings, and its major subsidiaries filed for rehabilitation simultaneously.

Attorney Lee Min-kyu analyzed, “This decision is not a ‘cutting off the tail’ strategy to shed insolvent subsidiaries, but rather an ‘all-out war’ that includes the headquarters (holding company),” adding, “It is a strategy to resolve the group’s complex, intertwined debt relationships all at once, rather than isolating the insolvency of individual affiliates.”

The differentiated restructuring approaches for each affiliate are also noteworthy.

JTBC is utilizing the Autonomous Restructuring Support (ARS) program to maintain the continuity of its broadcasting business, while JoongAng Ilbo is pursuing a creditor-led workout, among other measures tailored to the specific characteristics of each business. Commenting on this, the lawyer explained, “The group has effectively created separate compartments for each affiliate—JTBC is using ARS, while the JoongAng Ilbo is pursuing a workout,” adding, “Since broadcasting is a business where a halt means certain death, JTBC’s choice of ARS to buy time is the most rational course of action.”

He noted that future restructuring proceedings are likely to proceed by simultaneously selling assets and pursuing pre-approval M&A. He explained that Megabox is viewed as a relatively attractive asset because it can be acquired after the financial burden is alleviated through the restructuring process.

On the other hand, he predicted that the pool of potential acquirers for JTBC could be limited due to broadcasting-related regulations and approval procedures set by the Korea Communications Commission. Consequently, how swiftly the company can implement its self-rescue plan—valued at approximately 550 billion won and including the sale of its Sangam headquarters and Ilsan studio—is expected to be a key factor in the success of its restructuring.

The primary focus of interest is the Olympic and World Cup broadcasting rights held by #Contentree Joongang affiliates. These rights are part of a major contract spanning from 2026 to 2032, with a value of approximately 700 billion won.

It was noted that these broadcasting rights could become a key factor in the restructuring process. Attorney Lee Min-kyu pointed out, “The 700 billion won broadcasting rights could either serve as a ‘poison pill’ that drives away potential acquirers or act as a ‘catalyst’ to attract M&A.” He added, “If the contract terms prove burdensome to an acquirer, they could become a stumbling block for M&A; conversely, given that these are highly scarce content assets, they could also serve as a factor that enhances corporate value.”

Attorney Lee warned, “In manufacturing, inventory remains even if factories stop running, but in broadcasting and content, value evaporates into thin air the moment production stops.” He emphasized, “Corporate rehabilitation is not a system that kills a company but rather CPR to revive it; therefore, the core of the rehabilitation process lies in laying the groundwork for normalization while maintaining business continuity through asset sales and pre-approval M&A.”