Telecom minister urges antitrust watchdog to conclude SKT-CJH merger review

By Yoon Sung-won

Science, ICT and Future Planning Minister Choi Yang-hee speaks during a meeting with the media at a restaurant in Gwacheon, Gyeonggi Province, Thursday. / Courtesy of Ministry of Science, ICT and Future Planning

Science, ICT and Future Planning Minister Choi Yang-hee said Thursday he has complained to the chief of the antitrust watchdog, Jeong Jae-chan, about the delayed review process of SK Telecom’s proposal to merge with CJ HelloVision.

Choi, stressing that the review’s conclusion has been delayed longer than he expected, said he had voiced his concerns and the ministry is prepared to expedite the process once the Fair Trade Commission (FTC) concludes its review and transfers the case to the ministry.

“When I met the FTC chairman at an official occasion, I personally told him that the process of the merger review has been slow,” Choi said during a meeting with reporters in Gwacheon, Gyeonggi Province, Thursday. “I have raised questions about how far the review has progressed and when the case will be transferred to the ministry. And the antitrust watchdog chief’s answer was that the reviewing process is quite complicated and it is taking much time.

“Though we cannot forejudge how the watchdog will conclude the case, the ministry has been preparing to speed up the process. I hope that we can draw a conclusion early and announce it.”

On Dec. 1, SK Telecom proposed the merger of its subsidiary SK Broadband and the nation’s top cable television operator and budget mobile service provider CJ HelloVision to the telecom ministry, FTC and Korea Communications Commission. But the FTC has not yet concluded its review.

Choi disagreed with calls from the merger’s opponents — such as KT and LG Uplus — that the ministry should further postpone the review because the integrated broadcasting act is being revised.

“I do not find a need to seriously think about postponing the reviewing process further,” he said. “As a person in charge of a certain task, I believe it is not right to avoid dealing with the task on concerns of what may happen in the future.”

When asked his view of the recent patent dispute between Samsung Electronics and Huawei, Choi said the Chinese company has made a strategic move to solidify its presence as a global enterprise.

“Huawei has always claimed that it is not just a Chinese business but a globalized one operating research and development centers outside the country and generating more profit in global markets,” he said.

“In line with such efforts, I think its move to start a patent dispute with Samsung Electronics has been made under a well-calculated strategy to make it seem as a disagreement between global businesses. As one of the leading global businesses, Samsung Electronics is also expected to respond strongly.”