Rapo Labs Abruptly Withdraws SK Stoa Acquisition Bid... KCC Says 'Strict Review' Ahead

▲ SK Stoa

The Korea Communications Commission (KCC) reviewed the application for approval of changes to SK Stoa's largest shareholder, but the review procedure ended after Rapo Labs abruptly withdrew its application.

The KCC received the reporting agenda on the application for approval of changes to SK Stoa's largest shareholder during its 24th general meeting held at the Government Complex-Gwacheon on the 22nd.

During the review process from the 8th to the 10th, the review committee gathered expert opinions stating that "financial capabilities such as the adequacy and rationality of funding and operation plans are not met, and there is a lack of ability to support the broadcasting company and contribute to the development of broadcasting." Subsequently, on the 16th, Rapo Labs abruptly withdrew the application, stating that it intended to "change the capital procurement plan, including the composition of investors participating in the acquisition transaction structure and acquisition funding."

Standing Commissioner Go Min-soo pointed out, "The application was withdrawn after the review was completed, and if such a withdrawal was made for the purpose of evading unfavorable dispositions, applications should be restricted."

This is based on the rationale that a massive amount of administrative effort was invested following the application for approval of changes, thereby undermining the efficiency of government administration.

Commissioner Go strongly criticized, saying, "It is not appropriate to let someone take the test multiple times until they get admitted," and added, "Legislation restricting re-applications is necessary."

Commissioner Choi Su-young also requested, "As this was an unprecedented case of a startup acquiring a large conglomerate-affiliated home shopping company, market confusion is a concern due to the withdrawal of the application," and ordered, "Please review the maximum possible measures the commission can take."

Commissioner Ryu Shin-hwan likewise emphasized, "Even though the withdrawal itself is handled according to statutes, if a re-application is made in the future, please review it strictly, including whether it is an evasion-type application."

KCC Chairperson Kim Jong-chul instructed, "The secretariat should look into this closely," while Cheon Ji-hyun, Director General for Broadcasting Promotion, stated, "As SK Telecom is currently the largest shareholder, we will examine whether there are any illegalities, such as whether the main contract was properly terminated."

(Photo: Yonhap News)

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