Corporate credit card services for affiliates of JoongAng Group, one of South Korea’s largest media and entertainment conglomerates, have been suspended following the group’s court-led rehabilitation filing, as financial institutions tighten risk controls in response to rising credit exposure.
Samsung Card suspended all corporate card usage for the JoongAng Group on June 15, according to financial industry officials. At JTBC, a major nationwide television network and affiliate of the group, corporate cards issued by Samsung Card as well as Hyundai Card were also suspended. Additional restrictions involving Hana Card and Shinhan Card are expected to follow, industry sources said.
To provide international context, JoongAng Group is a massive player in the South Korean media landscape, comparable to major Western media networks. The group owns the JoongAng Ilbo, one of the country’s top three daily newspapers, and operates the premium cable TV channel JTBC, which produces globally distributed dramas and news programs. Its entertainment arm, Contentree JoongAng, also controls Megabox, one of South Korea’s largest movie theater chains.
The abrupt credit suspension reflects broader risk management measures by lenders after the conglomerate entered court-supervised rehabilitation proceedings. JTBC had previously defaulted on approximately ₩20.6 billion ($15 million) in asset-backed securities on June 12, triggering a formal credit event. Following the default, both Contentree JoongAng and Megabox JoongAng filed for rehabilitation under court supervision.
Under South Korean insolvency procedures, companies that enter rehabilitation are typically subject to tighter credit conditions as financial institutions seek to limit potential losses. Corporate credit cards, which function as revolving credit lines for companies, are often among the first financial products to face suspension or restriction.
A banking industry official said tightening credit exposure following a rehabilitation filing is a standard risk management response.
“After a bankruptcy filing, financial institutions typically manage credit exposure more conservatively to protect their claims,” the official said. “Restricting corporate card usage is part of normal risk control procedures.”
