0
/ Source: Yonhap News

The possibility is growing that Eugene Group, the largest shareholder of YTN, could lose its eligibility to control the broadcaster, as the government is widely expected to forgo an appeal against a recent court ruling that invalidated the change in ownership. Even if the government steps back, however, observers note that the process may still take months should Eugene decide to appeal on its own.

On November 28, the Seoul Administrative Court’s Division 3 ruled in favor of the YTN Employees’ Stock Ownership Association, overturning the Broadcasting and Communications Commission’s (now the Broadcasting, Media and Communications Commission) approval of the shareholder change. The court found the decision unlawful because the commission pushed the agenda through with only two members present.

Attention has since turned to whether the government will file an appeal. As the defendant, the BMCC must follow the instructions of the Ministry of Justice, which has authority over litigation involving government agencies. Given recent precedent, Justice Minister Chung Sung-ho may once again elect not to appeal. In September, he declined to appeal after broadcasters won lawsuits challenging fines imposed by the commission — a move seen as signaling stricter oversight of regulatory decisions made under the previous administration. The Lee Jae-myung government is also viewed as taking a critical stance toward the process by which Eugene acquired YTN.

A BMCC official said, “Government litigation follows the Ministry of Justice’s guidelines, and at this stage, it is difficult to discuss specifics regarding appeal deliberations.”

If the ministry chooses not to appeal, the lower court ruling would take effect immediately. The remaining variable is Eugene. As a participant in the lawsuit, Eugene may independently appeal, which would trigger further review and potentially delay a final ruling by at least three months. The company is reportedly considering such a move.

Some argue the BMCC should act swiftly to normalize its operations and issue administrative measures, including stripping Eugene of its eligibility as the largest shareholder. Jun Jun-hyung, head of the YTN labor union chapter, said that administrative action by the commission is decisive: “If the BMCC cancels Eugene’s eligibility, the decision takes effect immediately, preventing the company from exercising its shareholder rights.” He added, “The acquisition process appears to have involved artificial interference enabling control by certain interests. A government-level investigation should clarify what happened.”