SBS Also Follows Ulsan Broadcasting Path... KCC Expected to Approve Corrective Measures

Taeyoung Holds Over 10% Stake in SBS
Broadcasting Commission "Conducting Internal Review Based on Current Law"
Ownership and Dual Operation Regulation Reform Discussions Remain a Variable

[Asia Economy Reporter Cha Min-young] Taeyoung, the largest shareholder of SBS, was designated as a large business group with total assets exceeding 10 trillion won last month, and the Korea Communications Commission (KCC) is expected to decide on corrective measures. However, as discussions on easing ownership and cross-ownership regulations for broadcasters are active within the National Assembly and the KCC, there is also speculation that legislative amendments could become a variable.

According to related industries on the 15th, the KCC is internally reviewing the direction of deciding on corrective measures regarding Taeyoung's ownership of more than 10% of SBS shares. A KCC official stated, "We are in the review stage to proceed with administrative measures according to the Broadcasting Act," adding, "It will be a routine procedure, similar to the case of UBC Ulsan Broadcasting in previous years."

The KCC's action is an administrative measure based on current law. According to Article 8 of the Broadcasting Act, large business groups with total assets exceeding 10 trillion won are prohibited from owning more than 10% of terrestrial broadcasting shares. Taeyoung must either sell the portion of SBS shares exceeding 10% or sell SBS itself. As of the end of the first quarter of this year, TY Holdings, the holding company of the Taeyoung Group, holds 36.92% of SBS shares.

Since the KCC announced that it will review broadcasting regulations overall, including ownership and cross-ownership regulation improvements this year, there is speculation that such discussions could become a variable. Ownership and cross-ownership regulations have been considered strong regulations as they limit the entities that can operate broadcasting businesses. Similar legislative amendments have been proposed in the National Assembly. Independent lawmaker Yang Jeong-suk has introduced a revision to the Broadcasting Act that sets the asset threshold for ownership restrictions at a level determined by presidential decree within 0.015% of the country's gross domestic product (GDP). Considering that last year's GDP was 2,057 trillion won, the asset threshold could be relaxed up to 30 trillion won, which is 1.5%.

However, issues of fairness compared to previous cases remain controversial. Last year, the KCC issued corrective orders for ownership violations in July after Samra and Hoban Construction were included among companies with total assets exceeding 10 trillion won in May. Hoban Construction sold all its shares of KBC Gwangju Broadcasting to the JD Investment Consortium. Samra, which owns 30% of UBC Ulsan Broadcasting shares, has delayed the sale for over a year due to the inability to find a suitable buyer.

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