KCC Approves HCN Physical Division in Advance... Accelerating M&A Process

[Asia Economy Reporter Koo Chae-eun] The Korea Communications Commission (KCC) has given conditional preliminary approval to the 'physical division' of Hyundai HCN, a procedure for KT Skylife's acquisition of Hyundai HCN.

On the morning of the 23rd, the KCC resolved to grant preliminary approval for the application to change the license for the division of Hyundai HCN's comprehensive cable broadcasting operator (SO) business division, modifying some conditions proposed by the Ministry of Science and ICT and imposing related recommendations.

Earlier, the Ministry of Science and ICT had granted conditional approval by imposing conditions such as employment and subscriber succession of the divided corporation, and succession of Hyundai HCN's re-licensing conditions. The KCC included a condition in the preliminary approval that "the newly established corporation Hyundai HCN must invest an amount equivalent to the portion of the investment plan in the media content sector, as exemplified in the investment plan of its subsidiary Hyundai Futurenet, if it fails to comply with all or part of the investment plan."

Additionally, Hyundai HCN is required to verify Hyundai Futurenet's media content investment performance annually and submit the investment plan performance report received from Hyundai Futurenet to the Director of the Central Radio Management Office within three months after the end of each fiscal year. As a recommendation, the newly established Hyundai HCN was advised to "make efforts to operate organizations and systems related to management transparency, such as outside directors and audit committees, at the same level as the previous Hyundai HCN."

The KCC plans to notify the Ministry of Science and ICT that the preliminary approval is granted on the condition of these modifications and recommendations.

This content was produced with the assistance of AI translation services.