JTBC has officially begun the process of finding a new owner following the start of court-led corporate rehabilitation proceedings.
The move comes as the TV network’s financial difficulties have begun affecting its operations, including delayed payments to performers and cuts to production costs. The industry is now watching closely to see whether JTBC can stabilize its management through a sale.
JTBC released a statement on August 28th confirming that it had officially entered the sale process following the court’s decision to begin rehabilitation proceedings.
The Seoul Rehabilitation Court approved the commencement of rehabilitation proceedings for JTBC on the same day.
JTBC had filed for corporate rehabilitation in June after initially entering a workout program with creditors. Following several rounds of discussions, creditors determined that court-led rehabilitation would be more effective in protecting their rights. JTBC subsequently decided not to seek an extension of the workout program, leading to the court’s decision to begin formal rehabilitation proceedings.
“We will faithfully cooperate with the court’s rehabilitation process,” JTBC said. “Management and all employees will do their utmost to normalize operations through a swift sale.”
The company’s financial difficulties had already begun to affect the broadcasting industry in June, when JTBC failed to repay a 20.6 billion won short-term loan at maturity. JTBC and its affiliates, including JoongAng Holdings, Contentree JoongAng, JoongAng P&I and Megabox JoongAng, subsequently filed for rehabilitation proceedings.
The financial strain also led to delays in performer payments for several entertainment programs, including Knowing Bros, Chef & My Fridge and Divorce Camp. JTBC notified the performers’ agencies of the revised payment schedules and asked for their understanding.
Production of the upcoming drama Love Rediscovered, starring Kim So Yeon, Kim Ji Seok, Yoon Hyun Min and Hwang Woo Seul Hye, was also temporarily halted. While the production team attributed the break to script revisions and the rainy season, industry observers raised questions about whether JTBC’s financial difficulties had also played a role.
Filming was later scheduled to resume in August, with the production company, cast and crew agreeing to reduce costs. Performer fees were reportedly adjusted, while the scale of the production was significantly reduced. The drama was originally planned as a 12-episode series with episodes running approximately 70 minutes each, but was revised to eight episodes of about 45 minutes, cutting its total runtime from roughly 840 minutes to 360 minutes.
Shortly after JTBC’s rehabilitation filing, rumors also circulated that filming for some entertainment programs had been suspended. JTBC denied the reports, stating that “all programs are proceeding with their scheduled recordings.”
Meanwhile, some web programs produced by JTBC’s Digital Studio have also been affected. Park Eun Young’s web series concluded its season, while Park Myung Soo’s Hal Myung Soo halted production.
After nearly two months of negotiations with creditors, JTBC has now entered court-led rehabilitation proceedings and officially begun seeking a new owner. Its call for a “swift sale” marks the start of efforts to bring the broadcaster’s management back to normal.
With the financial crisis already affecting production through delayed payments and reduced budgets, attention is now focused on whether JTBC can successfully find a new owner and resolve the uncertainty surrounding its broadcasting and content production operations.
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