The US-U.S. Unification Committee approves changes to the division of Hyundai Home Shopping Corporation… Imposition of financial soundness conditions

The Korea Communications Commission approved the division of Hyundai Home Shopping's distribution business and investment business division and imposed conditions to ensure the stability and financial soundness of the surviving corporation.

The Korea-U.S. Unification Committee held its 49th general meeting at the Gwacheon Government Complex in Gyeonggi-do on the 13th and announced that it had approved the application for change approval for the division of Hyundai Home Shopping, a product sales broadcasting channel user.

According to the spin-off plan, Hyundai Home Shopping will spin off its investment business division and establish a new entity tentatively named Hyundai Home Shopping Holdings. The surviving corporation will take charge of the home shopping business, and the new corporation will inherit the existing affiliated company's shares.

The expert review committee, chaired by member Choi Soo-young, reviewed seven items from the 4th to the 6th and all were judged eligible.

However, opinions were presented that supplements were needed for the decrease in management transparency due to Hyundai Home Shopping's transition to non-listing, the possibility of fund outflow, and the asset management of the new investment company.

Accordingly, the Korea-U.S. Unification Committee maintained the ratio of outside directors in the board of directors above the level at the time of application and required the submission of matters related to dividends and related party transactions. The joint liability of the surviving corporation and the new corporation for debts prior to division was also maintained.

In addition, a letter of commitment was submitted guaranteeing the investment of 50 billion won in responsible management resources for the new investment company, and conditions were imposed to maintain the partner company win-win fund execution rate and the number of supported companies above the level at the time of application.

On this day, the Korea-U.S. Unification Committee also announced a plan to improve the operation of the telecommunications business user protection evaluation system. It was decided to disclose the scope and criteria for evaluation before the evaluation period and select some of the operators with a certain number of users as final evaluation targets. The two-year pilot evaluation for new evaluation target businesses will be abolished.

The improvement plan will be applied starting from the 2027 evaluation. The Korea-U.S. Unification Committee plans to hold a business briefing session early next year to provide details.

Kim Jong-cheol, chairman of the Korea-U.S. Unification Committee, said, “We have imposed necessary conditions to prevent disruptions in the broadcasting business,” and added, “Hyundai Home Shopping must faithfully fulfill the approval conditions and fulfill its responsibilities to stakeholders, including viewers and suppliers.” Regarding the improvement plan for evaluating user protection work, he said, "We expect that it will solidify the foundation for preemptive user protection of telecommunications operators."