JTBC Defaults on 20.6 Billion Won Debt, Credit Rating Downgraded

South Korean media giant JTBC faces a significant financial challenge after defaulting on 20.6 billion won (approximately $15 million USD) in short-term debt. The company failed to repay maturing debt, prompting credit rating agencies to downgrade its financial standing.

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We have been mobilizing all possible means to overcome the liquidity crisis.

NICE Investors Service lowered JTBC's long-term corporate bond rating from 'BBB/Negative' to 'CCC', indicating a high probability of default. Its short-term ratings for commercial paper and electronic short-term bonds were also cut from 'A3' to 'C'. Similarly, Korea Investors Service downgraded JTBC's corporate bond rating from 'BBB(Negative)' to 'BB(Under Negative Review)' and its short-term ratings from 'A3' to 'B(Under Negative Review)'. Both agencies cited increased liquidity risks and the potential for financial distress to spread from JTBC's affiliate, JoongAng Ilbo.

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We have already taken efforts such as entering an emergency management system for management efficiency.

In response to the crisis, JTBC issued a statement acknowledging the default and the resulting credit downgrades. The company asserted that it has been mobilizing all possible means to overcome the liquidity crisis and has already initiated emergency management measures for operational efficiency. JTBC pledged to exhaust all available domestic and international avenues to resolve the situation swiftly and responsibly.

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We will do our best by mobilizing all means that can be sought externally and internally to resolve this situation as quickly as possible with a responsible attitude.