Daou Kiwoom consortium becomes preferred bidder for JoongAng Ilbo — Korea Herald
In Seoul, South Korea, a consortium led by Daou Kiwoom Group, with the participation of CJ Group and Shinsegae, has become the preferred bidder to acquire the financially troubled publisher of the JoongAng Ilbo newspaper. As reported by Korea Herald, the consortium reportedly offered about 500 billion won, or $375 million, outbidding other participants in the auction.
Consortium structure
Daou Kiwoom Group, whose flagship financial entity is Kiwoom Securities, is expected to receive a 50% stake in the consortium. The remaining stakes are to be divided between entertainment conglomerate CJ Group and retailer Shinsegae.
The participation of CJ and Shinsegae is linked to the history of JoongAng Ilbo. CJ Group Chairman Lee Jae-hyun and Shinsegae Chairwoman Chung Yoo-kyung are grandchildren of Samsung founder Lee Byung-chul, who founded the newspaper in 1965. CJ already owns a 9.24% stake in JoongAng Ilbo through its affiliate CJ OliveNetworks.
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Financing for the publisher
The deal is to be carried out through a placement of new shares among a specified group of investors. According to the publication, the proceeds are to go directly to JoongAng Ilbo rather than existing shareholders and strengthen the publisher's financial position. In July, JoongAng Ilbo received approval for a creditor-led debt restructuring program.
Shinsegae confirmed its participation in the consortium and said it intends to develop cooperation using cultural platforms and lifestyle content, while respecting JoongAng Ilbo's identity and expertise. According to Korea Herald, Shinsegae is acting as a financial investor, does not seek management control, and may become the publisher's third-largest shareholder.
The consortium outbid five competitors, including Orion, Global Sae-A, OK Holdings, eBroadcasting, and Geumbo Development. Daou Kiwoom operates the KidariStudio webtoon and web novel platform, while CJ Group's key assets include media and entertainment company CJ ENM.
