Will YTN News Channel Ownership Change to Yujin Enterprise... KCC Begins Review

Review of Fair Responsibility and Management Plans
Yonhap News TV Also Undergoes Major Shareholder Change Review

Lee Dong-kwan, Chairman of the Korea Communications Commission

The Korea Communications Commission (KCC) has decided to conduct a suitability review for the acquisition of shares related to Yujin Enterprise, which was selected as the final successful bidder for YTN.

On the 16th, the KCC held a plenary meeting at the Government Complex Gwacheon and approved the basic plan for the review of the change in the largest shareholder of YTN, a news-specialized broadcasting channel operator.

Previously, KEPCO KDN held the largest stake of 21.43% in YTN, but after the change, Yujin ENT will hold 30.95%. Yujin ENT is a special purpose corporation funded 51% by Yujin Enterprise and 49% by Dongyang.

Considering that the approval review for the largest shareholder change of a news-specialized channel with significant social influence is involved, the KCC plans to thoroughly examine whether the applicant can ▲ fulfill the public responsibility and fairness of broadcasting ▲ the appropriateness of their broadcasting business goals and vision ▲ and measures to ensure fairness in news programs. The review committee will be composed of up to eight members.

The KCC will also ensure that the review committee sufficiently discusses and reviews concerns raised by the National Assembly and the media regarding the weakening of public interest, and will conduct hearings on the actual management responsible persons of the applicant corporation.

In this process, the committee plans to verify the applicant’s commitment to fulfilling the public responsibility of the news channel and their detailed future management plans.

Lee Dong-gwan, Chairman of the KCC, stated, "Since this change review is an important issue in the broadcasting industry, we plan to comprehensively verify the fairness of broadcasting, future vision, and management capabilities," adding, "I ask the review committee to thoroughly and meticulously examine this largest shareholder change approval so that it does not become a mere formality."

Meanwhile, the KCC also decided to review the approval of the largest shareholder change for Yonhap News TV, another news-specialized channel. In the case of Yonhap News TV, Yonhap News currently holds 29.86% of the shares, but if the change is approved, Eulji Hakwon will hold 30.08%.