[비즈한국] It has been confirmed that JoongAng Holdings, the holding company of JoongAng Group, has sold real estate located in Seoul's Seongbuk-dong, one of the country's most affluent neighborhoods, to BGF (BGF027410), the holding company of BGF Group. JoongAng Group has recently been liquidating its real estate and affiliate assets as its financial burden has grown. The buyer, BGF, is a company where BGF Group Chairman Hong Seok-jo, the younger brother of JoongAng Holdings Chairman Hong Seok-hyun, serves as the largest shareholder.
According to Bizhankook's investigation, JoongAng Holdings sold the real estate it held in Seongbuk-dong, Seongbuk-gu, Seoul, to BGF on the 2nd. The traded property consists of land measuring 5,252㎡ and a two-story detached house (total floor area of 388㎡). The sale price was approximately 35.1 billion won. Both parties signed a direct transaction contract on the 2nd and completed the transfer of ownership on the same day. Although JoongAng Holdings received a building permit in August 2023 to expand a two-story research facility (total floor area of 3,553㎡) in the area, it is reported that construction has not yet begun.
The sale of the Seongbuk-dong property by JoongAng Holdings is interpreted as a move to improve its financial structure. According to industry sources, JoongAng Group recently selected Colliers as its sale advisor and has been working to liquidate its held real estate and affiliate assets. Prior to this transaction, it had already selected preferred bidders for the sale of real estate assets worth 550 billion won, including the JoongAng Ilbo building and JTBC building in Sangam-dong, Mapo-gu, Seoul, as well as an Ilsan studio in Goyang, Gyeonggi Province. As of last year, JoongAng Holdings' tangible assets on a consolidated basis stood at 717.9 billion won (688.3 billion won in land and buildings).
JoongAng Holdings is the holding company of JoongAng Group, a media conglomerate within the pan-Samsung family. It has 55 affiliates, including the daily newspaper JoongAng Ilbo, the general programming broadcaster JTBC, and the media content producer ContentreeJoongAng036420. As of May this year, JoongAng Group was ranked as the 73rd largest corporate group in Korea, with total fair assets of 7.356 trillion won. Shares in JoongAng Holdings are divided among the family, including Chairman Hong Seok-hyun (7%), his eldest son, Vice Chairman Hong Jeong-do (55.8%), and his second son, Hong Jeong-in, CEO of ContentreeJoongAng (37.2%). Chairman Hong Seok-hyun is the older brother of BGF Group Chairman Hong Seok-jo and the younger brother of Hong Ra-hee, Director Emeritus of Leeum Museum of Art.
JoongAng Holdings' financial situation has deteriorated significantly of late. After posting a net loss of 117.2 billion won on a consolidated basis in 2024, it recorded another net loss of 28.6 billion won last year. While it succeeded in turning a profit last year with an operating profit of 2.3 billion won, it failed to overcome its structural net loss. As of the end of last year, JoongAng Holdings' total liabilities were 1.503 trillion won and total equity was 32.9 billion won, resulting in a simple debt ratio exceeding 4,500%. The 35.1 billion won sale price of the Seongbuk-dong property is, in effect, larger than the entire equity of JoongAng Holdings on a consolidated basis.