Korea’s financial watchdog has launched inspections into Shinhan Securities and Kiwoom Securities over their distribution of corporate bonds issued by broadcaster JTBC, which is currently under court-led rehabilitation proceedings, industry sources said Thursday. The Financial Supervisory Service (FSS) is reviewing whether the two brokerages continued underwriting and selling the bonds despite signs of JTBC’s deteriorating financial condition. It is also examining whether risks were properly disclosed and whether the products were recommended in line with investors’ risk profiles. The move comes amid rising concerns over potential losses for retail investors following JTBC’s default. The crisis at JoongAng Group escalated after JTBC failed to repay a 20.6 billion won ($13.3 million) asset-backed debt at maturity on June 12. Four affiliates, including holding company JoongAng Holdings, subsequently applied for court-led rehabilitation at the Seoul Bankruptcy Court on June 14, with JTBC following suit a day later. Retail investors have filed complaints with the FSS, alleging that se