Yujin Group Acquires YTN for 320 Billion Won (Comprehensive)

Eugene Enterprises, the holding company of Eugene Group, has been selected as the final successful bidder for the news channel YTN.

According to the investment banking (IB) industry on the 23rd, KEPCO KDN and Korea Racing Authority, the sellers of YTN, chose Eugene Enterprises as the final successful bidder with a bid price of 320 billion KRW.

The YTN shares up for sale this time total 30.95%, combining KEPCO KDN's 21.43% and Korea Racing Authority's 9.52%.

Following the selection of the successful bidder for YTN shares held by public enterprises, once the subsequent procedures are completed, Eugene Group will become the largest shareholder of YTN.

Eugene Group started in 1954 with a confectionery business, established Eugene General Development in 1979, and laid the foundation of its business by entering the ready-mixed concrete business. Since then, it has expanded into finance and logistics, currently operating about 50 affiliated companies.

From the late 1990s for about 10 years, Eugene Group operated a comprehensive cable broadcasting business and achieved considerable results. At that time, there was also a plan to develop the media business as the group's core business.

Eugene Group must obtain approval from the Korea Communications Commission (KCC) for the change of the largest shareholder with the highest investment amount to officially become the new largest shareholder of YTN.

According to the Broadcasting Act and other regulations, the KCC decides on approval after a committee resolution, considering ▲ the feasibility of realizing the public responsibility, fairness, and public interest of broadcasting ▲ social credibility and financial capability ▲ protection of viewers' rights ▲ broadcasting ownership regulations concerning large corporations, media companies, and foreigners.

YTN currently owns shares in terrestrial broadcasters YTN Radio (37.08%) and DMB (28.52%), so it must also review whether this violates terrestrial broadcaster ownership regulations.

On the 18th, Lee Dong-kwan, chairman of the KCC, said regarding the YTN sale issue, "Not only simple financial capability but also management philosophy based on fairness and publicness to leap forward as a global media powerhouse must be comprehensively reviewed."

The current largest shareholder KEPCO KDN and the third-largest shareholder Korea Racing Authority hold 21.43% and 9.52% of YTN shares, respectively. Combined, the two companies hold 30.95%. These public enterprises acquired shares by participating in YTN's capital increase during the 1997 International Monetary Fund (IMF) foreign exchange crisis.

Although YTN is a listed private company, it has been classified as a public broadcaster because public enterprises have been the controlling shareholders. Once this share sale is finalized, YTN will effectively be privatized.

In November last year, the government approved an asset efficiency plan to sell all YTN shares held by KEPCO KDN and Korea Racing Authority. Since then, KEPCO KDN and the Racing Authority have been preparing for the sale process.

Meanwhile, the National Union of Mediaworkers and the YTN branch of the Media Union held a press conference in front of the Hyatt Hotel, where the bidding took place, and called the share sale process riddled with illegality, urging a national audit by the National Assembly.

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