The Broadcast Media and Telecommunications Commission is expected to soon put on its formal agenda follow-up administrative measures stemming from whether there were flaws in its approval of Eugene ENT’s change to become YTN’s largest shareholder by investment amount, and begin a vote process.

Many commissioners agreed there were problems in the previous approval process, including a vote under a two-member system. Opinions differed, however, on whether this can be seen as grounds for ex officio cancellation and on the timing of any action.

On Aug. 14, the commission held its 28th plenary meeting and disclosed each commissioner’s review opinion related to the approval. After starting the related discussion in April, it held five meetings of a legal advisory group and seven commissioner briefings, and heard opinions from Eugene ENT, the YTN branch of the National Union of Mediaworkers, and the YTN employee stock ownership association.

At the meeting, Chair Kim Jong-cheol (김종철) recused himself from deliberation and voting on the agenda item, and standing commissioner Ko Min-su (고민수) served as acting chair.

Ko said the commission should soon complete its deliberations and move to vote on the agenda. He said the acting chair would decide whether to place it on the agenda and announce it.

The key issues commissioners reviewed were broadly three: procedural illegality including a two-member vote, the approval review process and whether Eugene ENT was at fault, and the need for and timing of ex officio cancellation.

On procedural illegality, a key focus was that the approval was adopted in February 2024 by a two-member panel consisting of then Korea Communications Commission Chair Kim Hong-il and Vice Chair Lee Sang-in. A first-instance court had previously ruled there was a serious procedural defect in the two-member vote and cancelled the approval measure.

Also reviewed as a procedural defect was that, during the approval review in November 2023, the parties directly participated in dismissing recusal requests for then KCC Chair Lee Dong-kwan and commissioner Lee Sang-in. A fairness issue was also raised because former chair Lee participated in the approval review while pursuing civil and criminal disputes with YTN over reports on allegations related to him during a confirmation hearing process.

Substantive issues included the KCC’s request for a joint sale of YTN shares, remarks by Eugene Group Chairman Yu Gyeong-seon on labor-management relations, additional materials and approval conditions related to collective bargaining agreements such as the CEO recommendation committee and the consent system for appointing the head of the news bureau. Views differed on whether these can be seen as flaws in the approval itself or as attributable to Eugene ENT.

Another issue is whether it is appropriate for the commission to pursue ex officio cancellation now even if illegality is recognized, with an appellate trial and related investigations and audits under way. Also reviewed were possible follow-on issues, including the likelihood that Eugene ENT could seek a suspension of execution or file an administrative lawsuit, as well as voting rights and disposition of YTN shares and the management system.

Commissioners differed in their conclusions. Ko said the two-member decision was a serious illegality that runs counter to the nature of a collegial administrative body, and stressed that the approval measure is void or should at least be cancelled.

Commissioner Yoon Seong-ok (윤성옥) said ex officio cancellation is possible based on procedural illegality alone. She proposed placing it as a formal agenda item at the next plenary meeting and proceeding with follow-up steps such as a hearing.

Commissioner Choi Soo-young (최수영), however, said suspicions that there was a problem with the measure should be distinguished from whether legal requirements for ex officio cancellation have been met. He said a decision should be made after confirming additional facts, including court, investigation and audit results.

Commissioner Lee Sang-geun (이상근) also said it is reasonable to proceed after receiving a final legal ruling. He argued the commission should wait for a judicial decision because the practical benefit of ex officio cancellation would be limited and there could be potential legal liability later.

Commissioner Ryu Shin-hwan (류신환) said there were procedural defects in the two-member decision and in handling the recusal requests. He added that further fact-finding is needed at present and the decision should take into account related audit and investigation results.

As a result, Ryu’s view is expected to be a key variable in the future direction of any measure. On Yoon’s proposal to place the item on the next plenary agenda, Choi and Lee Sang-geun opposed it, while Ryu said he would consider it further.

If a future plenary meeting concludes in favor of cancelling the approval, a hearing procedure for Eugene ENT will proceed. After the hearing, the commission will decide whether to take final action.