Ministry of Science and ICT, KCC, and Fair Trade Commission Join Forces... Streamlining Broadcasting and Telecommunications M&A Review

[Asia Economy Reporter Seulgina Jo] The review process for mergers and acquisitions (M&A) of broadcasting and telecommunications companies, which previously required approval from multiple ministries, will become faster and more efficient.

On the 14th, the Ministry of Science and ICT signed a 'Memorandum of Understanding for the Development of the Digital Media Ecosystem' with the Korea Communications Commission and the Fair Trade Commission.

This agreement aims to establish a cooperative framework among the three ministries responsible for reviewing broadcasting and telecommunications company M&As, to actively support domestic companies in differentiating content and expanding platforms through free M&A in response to the rapidly changing digital media environment. It is a follow-up measure to the 'Digital Media Ecosystem Development Plan' announced on June 22.

Under current laws, when broadcasting and telecommunications companies such as comprehensive cable TV operators engage in M&A, they must undergo separate reviews by the Ministry of Science and ICT (under the Telecommunications Business Act, Broadcasting Act, and IPTV Act) and the Fair Trade Commission (under the Monopoly Regulation and Fair Trade Act). Additionally, the Ministry of Science and ICT’s review of the fixed-line telecommunications sector requires consultation with the Fair Trade Commission, and the broadcasting sector review requires prior consent from the Korea Communications Commission before completion.

Industry insiders have pointed out that these procedures delay the M&A process for broadcasting and telecommunications companies and increase administrative burdens on businesses, limiting their ability to actively respond to the rapidly changing media market.

To address these limitations, the three ministries signed a memorandum of understanding that includes ▲ establishing a cooperative framework for M&A reviews of broadcasting and telecommunications companies and actively seeking efficient review methods ▲ sharing review schedules and progress ▲ sharing common review materials ▲ forming a consultative body among related agencies within 14 days after receiving an application, and pledged to faithfully implement these measures in future M&A reviews.

The government stated, “This cooperation is expected to contribute to the swift completion of M&As for broadcasting and telecommunications companies and have a positive impact on the development of the domestic media industry.”

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