'Stage X Facing Cancellation Crisis as 4th Telecom Operator "We Followed Procedures... Hired Law Firm for Hearing"'

Seo Sang-won, CEO of StageX, Expresses Regret Over Government Decision

Seo Sang-won, CEO of StageX, who dreamed of becoming the "4th mobile carrier," expressed regret over the government's decision to cancel their candidacy on the 20th, saying, "We just followed the procedures, but only our corporate image has been damaged." StageX had refuted the Ministry of Science and ICT's cancellation policy in a statement released on the 19th, expressing dissatisfaction with the government for two consecutive days. They have hired a law firm for the hearing and are also considering attending the National Assembly Science, ICT, Broadcasting, and Communications Committee's urgent inquiry scheduled for the 25th. The committee has designated CEO Seo as a reference witness.

Seo Sang-won, CEO of StageX, attended the 'StageX Media Day' held on the 7th at Fairmont Ambassador Seoul in Yeouido, Seoul. After introducing the 28GHz communication business strategy, he is answering questions from the press. Photo by Kang Jin-hyung aymsdream@

In a phone interview with Asia Economy on the same day, CEO Seo stated, "We submitted the plan to the government and proceeded accordingly, so it is difficult to understand why they are now saying it was wrong," arguing that the unfair decision has damaged the company's image.

The Ministry of Science and ICT recently announced the cancellation of StageX's qualification as the recipient of the 5G 28 GHz band mobile communication frequency allocation. The ministry cited reasons such as the lack of proper capital secured as stated in the 28 GHz frequency allocation application, making the payment of the remaining 387 billion KRW for the allocation fee, facility investment, and marketing uncertain. In response, StageX stated in their statement the previous day that four out of the seven planned investment participants, including StageFive, participated in capital procurement to pay the first installment of 43 billion KRW for the frequency allocation fee.

CEO Seo has begun preparing for the Ministry of Science and ICT hearing scheduled to start on the 27th. He said, "We have hired a law firm regarding the hearing procedures," expressing his intention to actively clarify the situation. StageX also plans to release an additional statement aligned with the hearing. CEO Seo said, "We are planning to release a statement that includes the preparation details for the hearing." Regarding the possibility of attending the National Assembly Science, ICT, Broadcasting, and Communications Committee on the 25th, he said, "It is under consideration."

The Ministry of Science and ICT maintains its original position. Ryu Je-myung, Director of the Network Policy Office at the Ministry, emphasized, "The payment of capital and the composition of shareholders are ways to verify the identity of the frequency allocation applicant corporation and the corporation at the time of application," adding, "The scale of capital, the number of shares to be issued, the set price, the composition of participating shareholders, and ownership ratios are all related to the corporation's substance." He further stated, "We cannot allocate frequencies to a corporation whose substance has changed."

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