[Asia Economy Reporter Seulgina Jo] The Ministry of Science and ICT announced on the 21st that it has conditionally approved the merger and acquisition (M&A) of SK Broadband (SKB), a subsidiary of SK Telecom, and T-Broad, the second largest cable TV operator.
The Ministry of Science and ICT made this decision regarding the corporate merger of SKB and T-Broad and the change of the largest shareholder in the comprehensive wired broadcasting operator (SO) by synthesizing the review results of the screening committee held last year and the prior consent opinion of the Korea Communications Commission.
The Ministry of Science and ICT stated, "Since this merger is a voluntary restructuring effort by businesses in response to market environment changes represented by the enlargement of media companies and the rise of over-the-top (OTT) internet video services, it is expected that the final approval will inject new vitality into the domestic media industry."
Furthermore, it added that by imposing conditions on fair competition, user benefits, regional reinforcement, and employment stability during the review process, it aims to minimize side effects that may arise from the merger of IPTV operators and SOs, while also contributing to the development of the media ecosystem through conditions related to content investment and win-win cooperation.
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