▲ The Board of Audit and Inspection building
The Board of Audit and Inspection (BAI) has announced the results of an audit showing that former Korea Communications Commission (KCC) Chairman Lee Dong-gwan intervened in the decision to sell YTN's shares in bulk during the privatization process in 2023.
The BAI released the findings of its audit regarding the management status of public institution assets today (September 14).
According to the audit, KEPCO KDN and the Korea Racing Authority—which held YTN shares at the time—initially signed a joint sales agreement to sell only 29.99 percent out of their combined 30.95 percent stake to prevent restrictions on conglomerates and other large companies from participating in the bidding.
This was because Article 8 of the Broadcasting Act restricts conglomerates from owning more than 30 percent of a broadcaster's shares.
However, between late August and early September of that year, former Chairman Lee demanded that then-Vice Minister of Trade, Industry and Energy, A, sell the entire stake. Lee also instructed working-level KCC officials to send official documents to the Ministry of Trade, Industry and Energy and the Ministry of Agriculture, Food and Rural Affairs stating that "it is desirable to consolidate and sell the entire stake."
In response, Vice Minister A summoned officials from KEPCO KDN and the Korea Racing Authority to instruct and demand a full sale of the shares, leading the two institutions to alter the agreement to a full stake sale and issue a bidding notice.
The BAI pointed out that "forcing the unjust modification of a legitimately established agreement between KEPCO KDN and the Korea Racing Authority not only infringed upon their autonomy in decision-making, but (consequently) resulted in only three companies participating in the bidding, shutting out the participation of conglomerates and others."
Accordingly, the BAI forwarded reference materials for investigation to the Corruption Investigation Office for High-Ranking Officials regarding former Chairman Lee and Vice Minister A.
At the same time, the BAI noted that the conditions for the highest-price bidding and the calculation of the estimated price itself were not flawed, stating, "Considering that the two institutions sold the stakes through competitive bidding at prices higher than the market stock price, valuation amount, and estimated price, it is judged that they were not sold at a low price."
It added, "While the possibility cannot be ruled out that the 'management premium' could have increased through the participation of conglomerates if the sale had proceeded according to the initial agreement, it is difficult to judge whether a low-price sale occurred based on hypothetical situations."
(Photo: Yonhap News)
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