Stage X "Four Shareholders Paid Capital"... Direct Rebuttal to Government Claiming Three

Stage X Hearing Postponed from 25th to 27th

StageX, which received a notice of cancellation of its qualification as the 4th mobile carrier, strongly refuted the government's position on the 19th that only three shareholders had fulfilled the capital payment. The hearing schedule to hear the opinions of the business operator related to the qualification cancellation has been postponed from the 25th to the 27th, considering the schedule of the National Assembly standing committee.

Seo Sang-won, CEO of StageX, attended the 'StageX Media Day' held on the 7th at Fairmont Ambassador Seoul in Yeouido, Seoul. After introducing the 28GHz communication business strategy, he is answering questions from the press. Photo by Kang Jin-hyung aymsdream@

On the 14th, the Ministry of Science and ICT announced the cancellation of StageX's qualification as a candidate for the 28GHz mobile communication frequency allocation operator, stating that among the six major shareholders of StageX (those holding 5% or more at the time of application), only one shareholder, StageFive, had partially fulfilled the capital payment. It was also reported that two of the four other shareholders did not make any capital payments.

In response, StageX rebutted through explanatory materials that four out of seven planned participating investors took part in capital procurement to pay the first installment of 43 billion KRW for the frequency allocation fee. StageFive, Douzone Bizon, and Yanolja participated as shareholders by making early investments, and Shinhan Investment Corp. participated via convertible bonds (CB) for the purpose of paying the frequency fee, separate from post-approval investment.

They also stated that the 'Capital Contribution Requirement Confirmation' from consortium participating investors specified the exact timing of capital contributions, and that the initial capital contribution of 205 billion KRW would be made upon fulfilling the prerequisite condition of securing the 4th mobile carrier status (frequency allocation approval).

StageX added that they first submitted the capital procurement plan in December last year and submitted supplementary materials on January 4th, with no changes made to the plan since then. Furthermore, the company claimed to have explained to the Ministry of Science and ICT that the composition of shareholders and their respective shareholding ratios at the time of procurement completion, as stated in the capital procurement plan submitted last month on the 8th, did not differ from the previously submitted frequency usage plan.

Meanwhile, the hearing originally scheduled for the 25th has been postponed to the 27th. A Ministry of Science and ICT official stated, "The postponement was made considering the National Assembly standing committee meeting and the schedules of the hearing chair and the business operator."