Audit finds former media regulator improperly pressured state firms in YTN stake sale
South Korea's Board of Audit and Inspection concluded that former communications watchdog chief Lee Dong-kwan unduly influenced two state-owned firms to sell their entire YTN stake in 2023.
The Board of Audit and Inspection determined that Lee Dong-kwan, who headed the Korea Communications Commission at the time, improperly intervened in the 2023 divestiture of a controlling stake in news cable channel YTN. Lee asked a vice industry minister to compel KEPCO KDN and the Korea Racing Authority to relinquish their entire holdings, overriding an earlier agreement to sell just under 30%. This action limited the bidding pool to three firms, effectively barring larger conglomerates from participating.
Under the Yoon administration's restructuring plan, Eugene ENT Co. acquired a 30.95% stake, becoming YTN's largest shareholder. The audit forwarded its conclusions about Lee and the vice minister to the Corruption Investigation Office for High-Ranking Officials, noting that the transaction price was not below market levels.
Why it matters
It reveals potential abuse of regulatory power affecting media ownership and competition in South Korea.
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