Joongang Ilbo acquisition draws strong interest as bidding heats up

Five to six companies submitted letters of intent in the preliminary bidding for Joongang Ilbo, signaling strong momentum for the sale of the newspaper, which is currently undergoing a corporate restructuring workout.

According to investment banking sources, Global Sae-A, OK Financial Group, E-Broadcasting and Geumbo Development were among the participants in Monday's preliminary bidding round. The acquisition is being structured as a third-party allotment rights offering through open competitive bidding. The seller aims to draw up a shortlist by the end of this month and complete the workout process before year-end.

Global Sae-A is considered the most motivated bidder among those that participated. The conglomerate has pursued a string of acquisitions backed by the steady cash generation of its core subsidiary, Sae-A Trading, an apparel original equipment manufacturer. Starting with Sae-A STX Entech in 2018, it went on to acquire Tailim Packaging, Ssangyong Engineering & Construction and Jeonju Paper in quick succession, rapidly expanding its business footprint. The group had sought to sell off its paper division in a bulk sale late last year but called off the plan in June.

OK Financial Group is also a dark horse. The group has been actively pursuing mergers and acquisitions using cash freed up after its exit from the consumer lending business. It reviewed acquisitions of Sangsangin Savings Bank and Pepper Savings Bank in 2025, and in July was named the preferred bidder for Yebyeol Non-life Insurance. The group is diversifying beyond its savings bank and capital-focused structure.

The entry of E-Broadcasting, the operator of YouTube channel Sampro TV, has also drawn attention. The company attempted a Kosdaq listing in 2023 but the exchange rejected the application, with concerns raised at the time over its heavy reliance on YouTube for revenue and the instability of its earnings.

Acquiring Joongang Ilbo would instantly elevate E-Broadcasting from a YouTube and education content operator to a full-scale media group. However, Sampro TV's own profit-generating capacity is somewhat limited, making the securing of financial investors a key factor. E-Broadcasting has recently brought Hanwha Group on board as an ally — as of the first half of this year, Hanwha Life Insurance and Hanwha Investment & Securities held stakes of 13.7 percent and 2.93 percent in E-Broadcasting, respectively.

Geumbo Development is a leisure company that operates golf courses including Nambu Country Club and the Orakai hotel brand. The Jeong Woo-seok and Jeong Won-seok family, which sits at the top of the ownership structure, also controls Jowon Tourism Promotion, the operator of the Korean Folk Village. Geumbo Development is the largest shareholder of venture capital firm Company K Partners, and the family's business interests span from hard assets such as golf, hotels and tourism to venture investment. The group has a number of affiliates with stable operating bases, including Nambu Country Club, Orakai Hotels and the Korean Folk Village.

Beyond those that submitted bids, interest in the deal ran deep, with CJ Group, SM Group and several other conglomerates reportedly considered potential buyers. CJ Group, which holds a stake in Joongang Ilbo through CJ Olive Networks, had been classified as a leading candidate but did not participate in this round of bidding. CJ Olive Networks holds a 9.24 percent stake in Joongang Ilbo, making it the third-largest shareholder after Joongang Holdings at 64.73 percent and Joongang Group Chairman Hong Seok-hyun at 15.63 percent. SM Group also weighed participation until the last moment before pulling out. Whether construction companies such as Booyoung and Hoban would join the race had been another point of interest for market watchers.