Yonhap News TV, YTN fail to form presidential recommendation committee, face disciplinary action

South Korean news channels YTN and Yonhap News TV have failed to establish a presidential recommendation committee as mandated by the Broadcasting Media Communications Committee (BMCC). The deadline has passed, and both broadcasters are now facing potential disciplinary measures, including advertising suspension.

Yonhap News TV's attempt to amend its articles of incorporation to form the committee failed during a shareholders' meeting. The proposal, which aimed for a committee composed of four members from management, four from labor, and one from the viewer committee, was rejected with only 51.3% approval, falling short of the two-thirds majority required. The largest shareholder, Yonhap News (28.0% stake), voted against the amendment. Yonhap News had insisted that it should recommend all four management members and have this stipulated in the articles of incorporation, a demand the labor union opposed.

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The proposal, which aimed for a committee composed of four members from management, four from labor, and one from the viewer committee, was rejected with only 51.3% approval, falling short of the two-thirds majority required.

YTN also struggled to bridge the gap between labor and management. While an agreement was reached to form a committee with equal representation from labor and management, plus one viewer representative, disputes arose over how to allocate seats among management, particularly concerning the largest shareholder's share. The labor union argued for a "one company, one vote" principle, advocating for other shareholders like Korea Ginseng Corporation and Mirae Asset to have recommendation rights. YTN management, however, maintained that the largest shareholder, Yujin Group (39.17% stake), which bears management responsibility, should have a greater allocation, deeming it unreasonable to grant equal rights to shareholders with significantly different stakes.

The conflict highlights a broader tension between major shareholders seeking to retain control and labor unions pushing for more diversified decision-making structures. Despite the revised Broadcasting Act aimed at ensuring media autonomy, major shareholders appear to be attempting to exert influence as in the past. The BMCC has already issued corrective orders, and non-compliance will likely lead to further penalties. YTN has requested mediation from the BMCC, while Yonhap News TV stated it plans to negotiate a compromise with the largest shareholder and hold another shareholders' meeting soon.

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The largest shareholder, Yujin Group (39.17% stake), which bears management responsibility, should have a greater allocation, deeming it unreasonable to grant equal rights to shareholders with significantly different stakes.