A court canceled a decision by the Korea Communications Commission (KCC) to change YTN's largest shareholder to the private corporations Eugene Group, ruling it unlawful.
The Seoul Administrative Court's Administrative Division 3 (Presiding Judge Choi Su-jin) on the 28th ruled in favor of the plaintiff in the first trial of a lawsuit filed by the YTN Employee Stock Ownership Association seeking to cancel the KCC's approval of the change of the largest investor (largest shareholder).
The court found the KCC's decision in Feb. last year to approve changing YTN's largest shareholder to Eugene Group unlawful because it was voted on by a two-Commissioner panel. It said there was a defect in the voting procedure.
EUGENE Corporation earlier secured eligibility as the largest shareholder by signing a contract in Oct. 2023 to acquire 30.95% equity in YTN held by KEPCO KDN Co. (KDN) and the Korea Racing Authority (KRA). Afterward, EUGENE Corporation requested KCC approval for the change of the largest shareholder, and on Feb. 7 of the following year, the KCC, with only two Commissioners in office, voted to approve EUGENE Corporation's change to YTN's largest shareholder.
On this, the court said, "The defendant (the KCC) is a collegial administrative body, and its decision-making requires mutual discussion, persuasion and deliberation, but with only two Commissioners in office, it is structurally difficult for the principle of majority rule to function in practice."
It added, "It is desirable for the defendant's major decisions to be made with all five members appointed and in office, with at least three in favor," and "Even if, due to unavoidable circumstances, fewer than five are in office, resolutions must be made with at least three members in office."
On the same day, the court dismissed a similar claim filed by the YTN chapter of the National Union of Mediaworkers for lack of standing. It accepted only the YTN Employee Stock Ownership Association's claim, finding that only it, as a shareholder, had a legally protected interest.