This article was published on the ChosunBiz MoneyMove (MM) site at 3:24 p.m. on Dec. 2, 2025.
JoongAng Group has decided to sell the operator of the resort chain "Phoenix Park" to secure liquidity. It was confirmed that specific terms, including the sale price, are being discussed with Hanwha Group.
If Phoenix JoongAng is sold, about 200 billion won in cash is estimated to flow into the owner family's company of JoongAng Group. JoongAng Group is expected to use this to inject funds into Contentree JoongAng and its subsidiary SLL JoongAng.
According to the investment banking industry on the 2nd, Hanwha Hotels & Resorts is conducting due diligence to acquire an 80% stake in Phoenix JoongAng. The total enterprise value of Phoenix JoongAng (based on equity price) that JoongAng Group wants is known to be about 250 billion won.
At the top of Phoenix JoongAng's governance structure is the owner family of JoongAng Group. The largest shareholder is JoongAng Resort Investment, which holds an 80% stake, and this company is a family company whose shares are divided among the three sons, including chairman Hong Seok-hyun. In other words, it has a share structure of "owner family → JoongAng Resort Investment → Phoenix JoongAng." The group's holding company JoongAng Holdings and the content affiliates Contentree JoongAng and SLL JoongAng, as well as the media affiliates JoongAng Ilbo and JTBC, have no direct equity relationships.
According to IB industry and resort industry sources, JoongAng Group has been quietly pursuing the sale of Phoenix JoongAng since last year. From the first half of this year, Deloitte Touche Tohmatsu Limited (DTTL) is understood to have taken charge of the sale and contacted potential buyers.
JoongAng Group's desired sale price for Phoenix JoongAng is about 250 billion won based on 100% equity. JoongAng originally planned to sell all its shares. However, because the individual shareholders holding the remaining 20% did not agree to dispose of their shares, the sale target is reported to have been limited to the 80% held by JoongAng Resort Investment.
JoongAng Group is said to have had difficulty meeting the expectations of potential buyers. This is because it was not selling all its equity and because the borrowings due within the year and the scale of membership fees maturing totaled 300 billion won.
For membership rights that are maturing, the company can either return the entrance fees to members or induce extensions by converting them into new products. In the IB industry, if Hanwha Group acquires Phoenix JoongAng, it is widely believed it will choose the latter method and assume the membership liabilities.
JoongAng Group's decision to sell Phoenix is interpreted as being because the sale proceeds would go into the owner family's family company, making cash use relatively free.
Currently, the group's content companies are in need of funds. Contentree JoongAng must repay convertible bonds (CB) in the 110 billion won range to private equity firm JKL Partners by Jan. of next year. SLL JoongAng, a subsidiary of Contentree JoongAng, must repay about 500 billion won in liabilities to Praxis Capital Partners and China's Tencent. The deadline is March of next year.
IB industry sources estimate that JoongAng Resort Investment, the owner family's company, will pocket about 200 billion won from this sale. Industry sources say JoongAng Resort Investment is likely to inject funds into the content affiliates in the form of equity or CB to repay liabilities. For example, JoongAng Resort Investment could buy the CB held by JKL Partners and become a shareholder of Contentree JoongAng.
An IB industry official said, "If the sale of Phoenix JoongAng is smoothly completed, JoongAng Group will also be able to breathe more easily to some extent."