[E-Daily Starin Choi Hee-jae Reporter] JTBC issued an official statement regarding allegations of accounting irregularities and suspicious financial transactions raised by the joint legal team representing victims of the JoongAng Group bond scandal, clarifying that all relevant procedures were conducted in accordance with the law.

In an official statement released on the 13th, JTBC said, “We sincerely apologize to all JTBC bond investors for causing them concern.”
Regarding the joint legal team’s claim that “JTBC issued 40 billion won worth of hybrid capital securities just before the fiscal year-end to avoid complete capital impairment,” JTBC emphasized, “We appropriately disclosed our financial situation in accordance with corporate accounting standards and complied with the Capital Markets Act regarding the issuance of hybrid capital securities and the execution of hybrid capital loans.”
Regarding JTBC’s 33 billion won loan to Studio Aye Jungang, the company explained, “Studio Aye Jungang is a wholly-owned subsidiary that produces JTBC’s variety shows,” adding, “JTBC lent 13 billion won under the guise of essential production costs to secure the supply of variety programs.”
The company further explained, “The remaining 20 billion won was the conversion of securitized bonds issued by Studio Aye Jungang into a loan, backed by a debt guarantee from JTBC,” adding, “No actual funds were withdrawn.”
JTBC stated, “We recognize the gravity of our responsibility and will keep our communication channels with investors as open as possible, making every effort to protect their rights and interests.”
On the same day, the joint legal team representing the victims of the Joongang Group bond scandal (Lee Bok-hyun Law Office and Changcheon Law Firm) held a press conference and raised allegations of irregularities in the issuance and distribution of JTBC’s corporate bonds and electronic short-term bonds.
The legal team also pointed out that JTBC was already effectively in a state of complete capital impairment even before issuing its 42nd series of unsecured public bonds worth 93 billion won. The legal team announced that on the 10th, they submitted a written statement to the Financial Investment Inspection Division 2 and the Financial Consumer Protection Bureau of the Financial Supervisory Service, representing 250 applicants with total damages amounting to 32.52 billion won.
Following its filing for corporate rehabilitation on the 15th of last month, JTBC also applied for the Autonomous Restructuring Support (ARS) program. On the 30th of last month, the Seoul Bankruptcy Court approved JTBC’s ARS application and deferred its decision on whether to initiate corporate rehabilitation proceedings. In contrast, the court decided to initiate rehabilitation proceedings for four affiliates of the Joongang Group.