The agreement marks a major ownership shift for the newspaper, founded in 1965 by Samsung Group founder Lee Byung-chul, and offers a potential lifeline to a publisher struggling with mounting debt and financial difficulties across its parent media group.
The consortium comprises Daou Technology, Saramin, an online recruitment platform operator, CJ Corp. and Shinsegae, according to JoongAng Ilbo. All four companies approved the conditional share subscription agreement at separate board meetings on Wednesday, while JoongAng Ilbo's board also endorsed the transaction.
Under the agreement, the consortium will inject 520 billion won into the newspaper through a third-party allotment of newly issued shares, becoming its largest shareholder.
Daou Technology will contribute 36.5 percent of the investment, followed by CJ with 35.7 percent, Shinsegae with 14.1 percent and Saramin with 13.7 percent.
The entire investment will flow into JoongAng Ilbo rather than its existing shareholders and will be used to repay financial creditors and outstanding publicly offered bonds, subject to the necessary creditor and bondholder approvals. The payment for the newly issued shares is scheduled for Dec. 23.
The acquisition follows months of financial turmoil at JoongAng Group, whose media and entertainment businesses have struggled with declining advertising revenue, mounting borrowing costs and substantial investments in broadcasting and content production.
The crisis escalated on June 12 when affiliated television broadcaster JTBC defaulted on 20.6 billion won in asset-backed debt after failing to meet its repayment obligations.
The default triggered a broader financial crisis, prompting five group companies, including JTBC, JoongAng Holdings, ContentreeJoongAng, Megabox JoongAng and JoongAng P&I, to seek court-supervised corporate rehabilitation.
JoongAng Ilbo faced additional financial pressure when Hanyang Securities demanded early repayment of 22 billion won in commercial paper amid concerns over the group's deteriorating creditworthiness.
The newspaper applied for a creditor-led debt workout with Hana Bank, its main creditor, on June 19. Creditors approved the restructuring program on July 10, allowing the publisher to pursue financial recovery outside court-supervised rehabilitation.
Industry observers have attributed much of the group's financial distress to its aggressive expansion into television, film production, movie theaters and sports broadcasting rights.
JoongAng Group reportedly committed approximately 700 billion won to acquire broadcasting rights for the Olympic Games from 2026 through 2032 and the FIFA World Cups in 2026 and 2030.
The group had expected to recover part of those costs by sublicensing broadcasting rights to South Korea's three major terrestrial broadcasters, KBS, MBC and SBS. However, disputes over fees complicated negotiations, adding to financial pressure as television advertising revenue weakened.
The group's movie theater business also struggled. Megabox JoongAng recorded six consecutive years of operating losses as cinema attendance remained below pre-pandemic levels amid the growing popularity of streaming platforms.
The financial difficulties have also brought a significant change to the newspaper's ownership structure.
JoongAng Ilbo was established by Samsung founder Lee Byung-chul in 1965 and separated from Samsung Group in 1999. It subsequently came under the control of the family of Hong Seok-hyun, chairman of JoongAng Holdings.
CJ and Shinsegae, whose controlling families are descended from Samsung's founder, are now participating in the acquisition alongside Daou Technology and Saramin, marking a renewed ownership connection between the newspaper and the broader Samsung founding family.
The consortium has pledged to protect employees' jobs, honor existing collective bargaining agreements and refrain from involuntary restructuring.
It has also promised to respect press freedom and editorial independence, including commitments not to interfere improperly in reporting, commentary or editorial decisions.
JoongAng Ilbo President Park Chang-hee said the company would prioritize protecting creditors and investors while working to restore its financial stability.
The newspaper aims to complete its debt workout program by the end of this year and focus on strengthening its journalism, content competitiveness and management efficiency under the new ownership structure.
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