Kim Hong-il, chairman of the Korea Communications Commission, presides over a meeting in Gwacheon, south of Seoul, on Feb. 7, 2024. (Yonhap)
SEOUL, Feb. 7 (Korea Bizwire) – South Korea’s broadcasting watchdog on Wednesday approved that an affiliate of the mid-sized conglomerate Eugene Group becomes the largest shareholder of the local news channel YTN.
The Korea Communications Commission (KCC) said it decided to approve the application by Eugene ENT Co. to change the largest shareholder of the broadcaster, with strict conditions aimed at enhancing the social contribution of specialized news channels.
The KCC’s conditions include the appointment of a media professional as YTN’s head, the engagement of independent auditors and directives to prevent any influence on the broadcaster’s news coverage. Moreover, Eugene Group is mandated to execute capital increase and investment plans for YTN and allocate dividends from YTN for its benefit.
Eugene Group, known for its diverse business portfolio spanning distribution to finance, clinched the deal to acquire a 30.95 percent stake in YTN last October, outbidding two other contenders. Its bid of 319.9 billion won (US$237 million) was the highest.
Currently, two state-run firms, KEPCO KDN and the Korea Racing Authority (KRA), collectively hold a stake in YTN, acquired during South Korea’s foreign exchange crisis in 1997. KEPCO KDN owns 21.43 percent of YTN.
The sale of YTN’s stake has drawn public attention as it seems to mark the beginning of its controversial privatization process. This move has sparked debates within the media industry about the implications of privatization.
Eugene Group affirmed its commitment to adhere to the KCC’s directives and proceed with the necessary procedures following the approval.
“We will do our best to help YTN, Korea’s leading news channel, fulfill its role with accurate and fair reporting,” the company said in a statement.
Established in 1954, Eugene Group had ranked as South Korea’s 78th-largest conglomerate by assets as of last year with around 50 subsidiaries in a wide range of sectors, including construction, finance and confectionery businesses, according to the Fair Trade Commission.
(Yonhap)
