Seoul: A court ruled in favor of employees of all-news TV channel YTN over an approval by the broadcasting regulator that changed the broadcaster's biggest shareholder.

According to Yonhap News Agency, in February last year, the then Korea Communications Commission, which has since been reorganized as the Korea Media and Communications Commission, approved an application by Eugene ENT Co. to become the largest shareholder of YTN. The Seoul Administrative Court found this decision to be illegitimate due to the lack of quorum, as it was made with only two members of the commission's decision-making body instead of the required five.

The court emphasized that a decision should ideally be made if three out of the five eligible members vote in favor. The court stated, "If there are only two active members, it is structurally difficult to implement such functions, and it does not conform to the fundamental idea of a consensus-based administrative agency, which requires the presence of multiple members." This scenario would allow the majority to unilaterally handle matters, sidelining the minority.

Under the previous Yoon Suk Yeol administration's restructuring plan, Eugene ENT acquired a 30.95 percent stake in YTN from two state-run companies, KEPCO KDN and the Korea Racing Authority, making it the broadcaster's largest shareholder. YTN's employee stock ownership association contested the commission's approval by filing a lawsuit.

YTN's labor union welcomed the court's decision and expressed hope that the new media regulator would reverse the shareholder change. Meanwhile, Eugene Group stated it would closely examine the ruling and decide whether to pursue an appeal.