From soju-fueled film festival parties to court-led restructuring, a South Korean content powerhouse’s mistimed global expansion and ill-judged bets on World Cup soccer and Olympic rights ended up derailing its dream of becoming the country’s Disney.
Less than two years after it was hosting the hottest event at Asia’s largest film festival, South Korean entertainment giant JoongAng Group’s parent company and its affiliates, including its film and TV studios plus cinema chain, have officially declared financial distress, after its JTBC broadcast arm defaulted on 20.6 billion won ($13 million) of debt.
Corporate cards have been halted, employee paychecks briefly failed to materialize, and even celebrity guests experienced late fee payments, local media reported, as JoongAng — South Korea’s second-largest media group — struggles to urgently cut costs as it services an estimated 2.8 trillion won ($1.8 billion) of debt.