Eugene ENT gets approval to become YTN's largest shareholder

Korea's broadcasting watchdog granted Eugene ENT approval to become the largest shareholder of YTN, a local news channel.

YTN office building in Mapo District, western Seoul, on Wednesday [NEWS1]

Korea's broadcasting watchdog granted Eugene ENT approval to become the largest shareholder of YTN, a local news channel.

With the latest decision from the Korea Communications Commission (KCC), Eugene ENT, a special purpose company under Eugene Group, will secure a 30.1 percent stake in the broadcaster acquired from two state-owned companies.

The KCC on Wednesday said that it approved the application by Eugene ENT 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 combined 30.95 percent stake in YTN last October from state-run Kepco KDN and the Korea Racing Authority, outbidding two other contenders. Its bid of 319.9 billion won ($237 million) was the highest.

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 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.

BY SHIN HA-NEE, YONHAP [shin.hanee@joongang.co.kr]