Bond investors in South Korea are calling for a formal investigation into broadcaster JTBC after the company issued 930 billion won [1] in corporate bonds.

The dispute centers on allegations that JTBC knowingly sold these securities while the company was in a de-facto state of full capital impairment. This has led victims to fear that the repayment of their principal is now in jeopardy.

According to investors, the issuance occurred in February 2026 [1]. They allege that the broadcaster and the securities firms that sold the bonds, including Shinhan Investment Securities, Kiwoom Securities, and Hanyang Securities, failed to disclose the company's true financial instability.

Financial data cited by the victims shows JTBC reported total equity of 190 billion won [1] at year-end, which included 1,544 billion won [1] in capital securities. When these securities are accounted for, the resulting net equity is negative 1,354 billion won [1].

"JTBC issued 930 billion won in corporate bonds despite knowing about the capital impairment," a representative for the bond victims said [1].

The group, known as the Central Group bond victims, is demanding that the broadcaster's management secure funds immediately to guarantee the original principal. They are seeking a thorough probe into whether the financial health of the company was misrepresented to the public.

Shinhan Investment Securities addressed the concerns, saying that the repayment of principal and interest for the JTBC bonds remains manageable [1].

However, the investors point to a 206 billion won [1] unpaid loan that they say led to the broadcaster's default. They argue that the issuance of new debt while insolvent constitutes fraud.

“JTBC issued 930 billion won in corporate bonds despite knowing about the capital impairment”

This situation highlights the risks associated with 'hybrid' capital securities, which can be counted as equity on a balance sheet but function as debt. If the court or regulators find that JTBC intentionally obscured its negative net equity to attract investors, the company and the involved securities firms could face severe legal penalties for financial fraud and misrepresentation in the South Korean credit market.