JTBC Bonds: Lawyers Allege Incomplete Disclosure to 250 Investors Amid Full Capital Erosion

According to bond investor lawyers, Shinhan Investment Securities failed to fully disclose financial risks when underwriting a 930 billion won bond issuance for JTBC on July 13, despite the company being in a state of complete capital erosion. The lawyers claim the lead underwriter documented capital erosion, credit downgrades, accumulated losses, and heavy short-term debt reliance in its own due diligence report, yet concluded in the investment prospectus that principal and interest repayment would be "without issue."

The legal team also alleged that on-site due diligence was replaced with a one-day conference call. Additionally, Kiwoom Securities reportedly guided investors to refuse Happy Calls—post-sale verification calls required to protect financial consumers—during the sale of JTBC short-term bonds via its mobile trading system. As of July 8, the joint legal team received complaints from 250 investors representing 32.52 billion won in losses.