KT's Unease Over 'TVING-Wavve Merger' Process: "Doubtful if It Aligns with TVING Shareholder Value"

Kim Chaehee, Head of Media Division:
"Business Cooperation Value at the Time Has Been Undermined"

At the KT Media Talk held on the 16th at Andaz Hotel in Seoul. Kim Chaehee, Executive Director, is seated at the far right. Photo by Park Yujin

As discussions on the merger between TVING and Wavve enter their final stages, KT, one of TVING's major shareholders, has remained tight-lipped but revealed complex sentiments. Kim Chae-hee, Executive Vice President overseeing KT's media division, stated at the KT Media Talk held on the 16th, "Given that Wavve's dominance over terrestrial broadcasting content is no longer what it used to be, it is questionable how much a merger with them aligns with TVING's shareholder value."

He added, "KT participated as a 'strategic investor' in TVING, considering tight synergies across the entire media sector rather than just a simple financial investment," and expressed, "I think the business cooperation intentions and values from that time have now been undermined." This reflects concerns that their business value and direction are not being properly reflected in the current merger discussions.

While Kim said, "The TVING-Wavve merger is an industry issue, but KT is focusing on the path it must take," he subtly hinted dissatisfaction over KT being excluded from the merger process. He mentioned, "We are maintaining official communication with CJ and can express our position at an appropriate time," but his remarks are interpreted as partially revealing KT's internal discomfort from the perspective of a media executive.

KT is the second-largest shareholder of TVING after CJ ENM. The two companies promised comprehensive cooperation including joint content production, platform collaboration, and advertising business linkage, with high expectations for synergy with KT's IPTV service 'Olleh TV.' However, CJ ENM has since been pushing for a merger with Wavve, led by SK Telecom and the three terrestrial broadcasters. In this process, KT is evaluated to have been effectively sidelined from the decision-making structure.