Sale adviser Samil PwC closed final bidding on the 19th and chose a consortium of Daou Kiwoom Group and CJ Group as the preferred bidder to acquire JoongAng Ilbo, about three months after the paper entered a creditor-led workout.
According to Herald Business and Hankook Ilbo, Samil PwC named the Daou Kiwoom–CJ consortium preferred bidder on the afternoon of the 19th, the same day final bids closed. Samil reportedly weighed bid price, funding capacity, the effect on the financial structure, the public value of the press, and job stability and future investment.
광고 문의 · 300×250Six parties took part in the final round: the consortium, Orion, Global Sae-a, OK Financial Group, E-Broadcasting and Geumbo Development. Seoul Economic Daily and MyDaily reported that the consortium's bid was about 500 billion won, while most others bid roughly 300 to 400 billion won. These figures come from press reports and have not been officially announced by the seller.
How the Sale Came About and What Comes Next
JoongAng Ilbo applied to creditor banks for a workout on June 19, and the process began on July 10 with the consent of creditors holding at least 75% of claims. Hana Bank is the main creditor bank. Herald Business reported that the company's self-rescue plan includes selling subsidiary stakes and land in Taean County to raise 66.4 billion won and giving up family control of management.
The sale is a third-party allotment rights offering: the buyer subscribes to new shares and becomes the largest shareholder, and the payment goes into the company to repay debt and improve its finances. A conditional share subscription agreement, the creditor council and a bondholder meeting still lie ahead, and the company aims to complete the sale and exit the workout within the year.
The Consortium and the Press Community
Daou Kiwoom is said to have first considered bidding alone before teaming up with CJ shortly before the final round. Under the Newspaper Act a large business group cannot hold more than 50% of a general daily, and analysts say a consortium eases that constraint. CJ already holds 9.24% through CJ Olive Networks as the third-largest shareholder, and how the stake will be split between the two groups has not been decided.
Seoul Economic Daily reported expected content synergies with Daou's webtoon and web-novel platform Kidari Studio and CJ ENM. The reports cited, however, contain no formal reaction from unions, press organizations or experts, and details such as safeguards for editorial independence after the deal are unconfirmed. What concrete pledges on press public value and job security emerge in the creditor approval process will be closely watched.