Dow-CJ Consortium to Sign 520 Billion Won JoongAng Ilbo Acquisition Deal on Nov. 5 (Update)

Consortium of Dow Technology, CJ, Shinsegae, and Saramin to Become Largest Shareholder

The Dow-CJ consortium will sign a conditional share subscription agreement (SSA) with JoongAng Ilbo on November 5, involving 520 billion won.

On November 4, each of the consortium members—Dow Technology, Saramin, CJ, and Shinsegae—held a board meeting and approved the proposed SSA for acquiring management control of JoongAng Ilbo. JoongAng Ilbo also held a board meeting that day and passed the related resolution.

Yonhap News Agency

This M&A will proceed through a third-party allotment, in which the acquirer invests new funds to subscribe for newly issued shares. The Dow-CJ consortium will thereby become JoongAng Ilbo's new largest shareholder.

The Dow-CJ consortium will invest a total of 520 billion won to subscribe for the new shares. The investment will be divided as follows: Dow Technology, 36.5%; Saramin, 13.7%; CJ, 35.7%; and Shinsegae, 14.1%.

All of the funds will go to JoongAng Ilbo and be used to improve the company's financial health and resolve debt risks. They will be used to repay financial claims held by creditors, subject to a resolution by the Financial Creditors Council, and to repay publicly offered bonds held by bondholders, subject to a duly adopted resolution at a bondholders' meeting.

The acquisition agreement also includes safeguards to protect JoongAng Ilbo's public-service role and internal stability. The Dow-CJ consortium has pledged to guarantee the employment of JoongAng Ilbo employees and honor the existing collective bargaining agreement, while maintaining a stable working environment without arbitrary restructuring.

To guarantee press freedom and editorial independence, the consortium has agreed to comply with relevant laws and agreements on fair reporting in the collective bargaining agreement, and not to interfere improperly in news coverage, commentary, or editing. The parties will also consult on establishing institutional safeguards for editorial independence.

JoongAng Ilbo said it will do its utmost to complete its corporate restructuring program and exit its workout by the end of this year.

Park Janghee, CEO of JoongAng Ilbo, said, "We will do our utmost to protect the rights and interests of creditors and investors who have trusted and supported JoongAng Ilbo, and to achieve an early turnaround. Once the new governance structure is firmly in place, we will further strengthen our content competitiveness and management efficiency, while continuing to uphold the trust of our readers and advertisers."

This content was produced with the assistance of AI translation services.