 |
Photo = Yonhap news |
[Alpha Biz= Paul Lee] Seoul, South Korea – April 22, 2025 – Eugene Group will invest KRW 20 billion in its subsidiary, YTN, a leading South Korean news channel, through a third-party allotment capital increase.
According to a disclosure filed on April 22 via the Financial Supervisory Service’s electronic disclosure system, YTN held an extraordinary board meeting the previous day and approved the issuance of 5,676,980 new shares at KRW 3,523 per share to Eugene ENT, its largest shareholder.
The newly issued shares represent 13.5% of YTN’s total outstanding shares (42 million shares). Upon completion of the capital increase, Eugene ENT’s ownership stake in YTN will rise from 30.95% to 44.47%.
YTN plans to use the proceeds to invest in platforms for artificial intelligence (AI) and digital media, cultivate specialized talent, produce new programs, and upgrade its broadcasting equipment—initiatives aimed at strengthening the company’s future competitiveness.
The broadcaster also stated that the capital injection would help fulfill key conditions for reauthorization set by the Korea Communications Commission last year, as well as meet the criteria for approval of Eugene ENT’s status as the new largest shareholder.
Eugene Group signed a share purchase agreement in November 2023 with former YTN stakeholders KEPCO KDN and the Korea Racing Authority, and completed the acquisition in February 2024. Eugene ENT, the acquiring entity, is a special-purpose company (SPC) jointly owned by Eugene Corporation (023410) with a 51% stake and Dongyang (001520), a construction materials affiliate, with 49%.
The total value of the YTN share acquisition by Eugene Group was estimated at approximately KRW 320 billion.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
