[Asia Economy Reporter Koo Chae-eun] The Korea Communications Commission (KCC) has conditionally approved Taeyoung Construction's prior approval application for the change of the largest shareholder of SBS Media Holdings.
On the 1st, the KCC held the 32nd plenary meeting at the Government Complex Gwacheon and conditionally approved Taeyoung Construction's application for the change of the largest shareholder of SBS Media Holdings, deciding to reflect the implementation performance in the 2020 SBS license renewal review.
The KCC added conditions including ▲ compliance with the principle of separation of ownership and management of broadcasting ▲ preparation of management plans such as restructuring SBS subsidiaries and SBS Media Holdings subsidiaries to prevent deterioration of SBS's financial soundness or damage to future value ▲ resolution of violations of the Fair Trade Act ▲ measures to enhance the public responsibility, fairness, and public interest of broadcasting due to the establishment of a new corporation ▲ and faithful implementation of the memorandum of understanding.
On the 29th of last month, the KCC required Taeyoung Construction, the largest shareholder, to faithfully implement the submitted memorandum of understanding and to obtain prior approval from the KCC if any changes occur. It also ordered strict compliance with the principle of separation of ownership and management of broadcasting, such as non-intervention of the largest shareholder in SBS management, since the establishment of TY Holdings could strengthen the controlling rights of the largest shareholder over the entire Taeyoung Group, including SBS.
Furthermore, the KCC required the preparation of management plans such as restructuring SBS subsidiaries and SBS Media Holdings subsidiaries to prevent deterioration of SBS's financial soundness or damage to future value, submission of these management plans to the KCC within six months after approval, and faithful implementation. Taeyoung Construction must sincerely consult with representatives of SBS employees when establishing the management plan and submit the process and results to the KCC.
The KCC conditioned Taeyoung Construction to promptly resolve the violation of stock ownership relations of grandchild companies under Article 8-2, Paragraph 4 of the Monopoly Regulation and Fair Trade Act and to submit a resolution plan to the KCC within six months after approval. Additionally, when establishing TY Holdings, it required the inclusion of professional broadcasting management personnel, reflection of matters related to the realization of public responsibility, fairness, and public interest of broadcasting in the articles of incorporation within three months after the establishment of the corporation, and submission of detailed related plans to the KCC within six months with faithful implementation.
The KCC plans to review and reflect the implementation performance of the conditions imposed today during this year's SBS license renewal review scheduled at the end of the year.
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