KMCC Approves Review Plan for SK Broadband's Corporate Spin-Off

The Korea Media and Communications Commission (KMCC) has approved a basic plan to review license modifications for SK Broadband's corporate spin-off as the company moves to separate its artificial intelligence (AI) data center business.

The KMCC announced that it held its 44th plenary meeting at the Government Complex Gwacheon on October 23 and approved the draft basic plan for reviewing license modifications for Internet Protocol television (IPTV) and cable television broadcasting services following SK Broadband's corporate spin-off.

SK Broadband filed for license modifications on September 1 to spin off its AI data center business.

Under the spin-off, the surviving entity, SK Broadband, will account for 84 percent, while the newly created entity, SK Horizon, will account for 16 percent.

Following the division, SK Telecom plans to hold 100 percent and 51 percent stakes in the two entities, respectively.

The KMCC plans to establish a review committee comprising seven experts in broadcasting and media, law, technology, business and economics, accounting, and viewer and consumer affairs to evaluate whether the public responsibilities and operational capabilities of the existing broadcasting operations will be maintained after the spin-off.

During the meeting, some commissioners emphasized that the regulatory body must closely scrutinize the financial burdens on broadcasting services resulting from the spin-off, capacity for content investment, and equipment usage fees.

Commissioner Lee Sang-geun opposed the plan, arguing that the interests of minority shareholders should be taken into account, but the plan was approved with five votes in favor among the six commissioners present.

The KMCC also decided to impose a fine of 30 million won on program provider IHQ in lieu of a business suspension for violating registration modification requirements under the Broadcasting Act.

IHQ spun off and registered i Show Media on June 8 without obtaining approval for registration modifications from the KMCC.

Meanwhile, the KMCC ordered YTN and Yonhap News TV, which failed to comply with corrective orders regarding their CEO recommendation committees, to rectify their violations of the Broadcasting Act by December 19.

The commission also plans to pursue administrative measures to shorten the validity period of the two broadcasters' reauthorizations by three months, which will be deliberated and resolved later following prior notice and the submission of opinions from the broadcasters.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.