South Korean investigation into YTN sale interference

South Korea’s Board of Audit and Inspection (BAI) has referred former Korea Communications Commission Chairman Lee Dong-kwan and former Vice Minister of Industry Kang Kyung-sung to the Corruption Investigation Office for High-ranking Officials (CIO).

The referral follows an investigation into the 2022 sale of YTN shares. The BAI reported that Lee pressured the Ministry of Trade, Industry and Energy to alter the sale structure. While state-owned entities originally planned to sell only 29.99% of their combined stakes to allow participation from large corporations, Lee allegedly instructed the Ministry to demand a full sale of all shares.

This intervention resulted in a revised agreement that excluded large corporations from the bidding process, leaving only three participants. Although the BAI noted that YTN was eventually sold to Eugene Group for 319.9 billion won—a price it did not deem undervalued—the agency concluded that the interference “unlawfully infringed upon the decision-making autonomy” of the public institutions involved.