JTBC defaults on 20.6 billion won debt, vows to resolve issue

South Korean broadcaster JTBC faces a significant financial challenge after defaulting on a 20.6 billion won debt, prompting a downgrade of its credit rating. The company failed to repay principal and interest on its securitized loans on time, leading to the downgrade by NICE Investors Service.

NICE Investors Service lowered JTBC's unsecured bond credit rating from 'BBB/Negative' to 'CCC,' a grade indicating a high likelihood of default. The agency also downgraded the ratings for JTBC's affiliate, JoongAng Ilbo. The 'CCC' rating signifies a highly speculative investment due to the potential for default.

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External conditions have worsened, with the TV broadcasting advertising market shrinking significantly as the media environment rapidly changes, centering on digital and OTT.

JTBC acknowledged the liquidity crisis, citing external factors such as the significant contraction of the TV advertising market and the rapid shift in the media environment towards digital and OTT platforms. "External conditions have worsened, with the TV broadcasting advertising market shrinking significantly as the media environment rapidly changes, centering on digital and OTT," the company stated in a press release.

Despite the financial difficulties, JTBC assured the public that its core operations are unaffected. "Broadcasting content production and airing, including news and major sports broadcasts, are all operating normally," the company said. JTBC also stated it is "making efforts to overcome the liquidity crisis by mobilizing all available means" and has already initiated emergency management measures for efficiency. The broadcaster recently secured broadcasting rights for the Olympics and World Cup, incurring substantial costs.

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This situation will be resolved as quickly as possible by mobilizing all available means. Broadcasting content production and airing, including news and major sports broadcasts, are all operating normally.