LG Uplus calls SK Telecom's takeover of broadcaster 'illegal'

By Kang Yoon-seung

SEOUL, Nov. 30 (Yonhap) -- LG Uplus Corp., South Korea's smallest mobile carrier, said Monday that the latest takeover of a local broadcaster by its bigger rival SK Telecom Co. is "illegal," claiming that the move will distort the market order.

Earlier this month, top mobile carrier SK Telecom struck a deal to buy CJ Hellovision, the country's biggest operator of cable channels and Internet TV content in a bid to tap into the media platform business.

"(SK Telecom's) move to monopolize the broadcasting and telecom industry through an illegitimate merger and acquisition must not be tolerated," LG Uplus said in an official statement.

Citing a local law firm, LG Uplus also said the merger violates South Korea's fair trade rules that regulate mergers with top industry players.

"It is the norm that competition among numerous players is more beneficial to consumers than merger deals among conglomerates," LG Uplus added, "The deal will distort the market order."

Under the deal, SK Telecom will purchase a 30-percent stake in CJ Hellovision from parent firm CJ O Shopping. SK Telecom also has the option to buy an additional 23.9-percent stake.

When the merger is complete, SK Telecom will boast 7.5 million broadcasting service subscribers, industry watchers said.

Currently, KT Corp. is the top player in the segment with 6.15 million users for its Internet Protocol TV services, along with 2 million subscribers to KT Skylife Co., a satellite broadcasting provider. LG Uplus has around 2.2 million subscribers for its broadcasting services.

SK Telecom takes up around 50 percent of the South Korean mobile market, followed by KT with 30 percent and LG Uplus with 20 percent, respectively.

colin@yna.co.kr
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