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 ¡ª South Korea¡¯s second-largest media group ¡ª struggles to urgently cut costs as it services an estimated 2.8 trillion won ($1.8 billion) of debt.
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