StageX Refutes Grounds for Government Sanction Cancellation
Company States "Cannot Acknowledge Non-Compliance or Breach of Commitment"
StageX, facing the risk of losing its qualification as the 4th mobile carrier, expressed strong regret over the government's decision. Despite having sufficiently explained its position during the administrative hearing, the company stated that if its qualification is revoked, it will make every effort, including filing for a suspension of execution.
On the 27th, StageX said, "At the hearing, we will sincerely explain not only the difficulties we face as a new business operator but also StageX's business will and vision," adding, "Regardless of the outcome, we will never give up on the challenge until the end." On this day, an administrative hearing procedure was held in accordance with the Administrative Procedures Act regarding the cancellation of StageX's designation as the corporation allocated the 28 GHz band mobile communication frequency.
The company also stated, "If the designation as the allocated corporation is canceled as a result of the hearing, we will exercise all rights permitted by law, including filing for a suspension of execution, to restore our rightful legal status."
StageX denied the government's basis for the disposition, which was non-fulfillment of the frequency allocation application requirements. The government pointed out that StageX failed to pay the capital and asset evaluation amount of 205 billion KRW, as specified in the application, by the deadline of the 7th of last month. In response, the company argued, "The specific funding plan should be confirmed through the frequency utilization plan," and "It is impossible to understand the details solely from the frequency allocation application."
Furthermore, it stated, "The plan submitted by StageX clearly specifies that the capital will be paid after the frequency allocation decision," adding, "This content was additionally prepared and submitted on January 4th of this year following a request for supplementation from the Ministry of Science and ICT after the initial submission of the plan on December 19th of last year."
StageX also refuted the government's claim that it violated the pledge by changing the composition of shareholders and shareholding ratios without approval from the Ministry of Science and ICT. According to StageX, the pledge includes provisions such as ▲no disposal of shares without the Minister of Science and ICT's approval from the date of allocation selection (February 5) until the start of the frequency usage period ▲faithful implementation of the funding plan described in the application documents.
The company stated, "Each shareholder has not disposed of shares during the period specified in the pledge and is faithfully implementing the funding plan based on the application documents, including the application and the plan."
StageX added, "We are still fully prepared to fulfill our investment obligations," and "Over the past six months, we have executed a massive budget for preparing the mobile business, and strategic alliances and investment discussions with manufacturers, related partners, and investors are also underway."
It continued, "If the Ministry of Science and ICT cancels the designation of the allocated corporation without justifiable reasons, all preparations will be wasted, and manufacturers and related partners will bear enormous sunk costs," urging, "We earnestly request administrative enforcement in accordance with the principle of trust protection."
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