“The deal allows us to improve people’s lives with technology based on the fifth-generation network,” LG Uplus said in a statement. “Our decision will facilitate competition in the broadcasting and telecommunication industries.”

The deal is subject to the anti-trust agency’s approval as it could lead to a market monopoly. Some industry watchers, however, predicted that the Fair Trade Commission would take a softer stance than before.

In 2016, the FTC disapproved of SK Broadband’s acquisition of CJ Hellovision, saying the takeover would undermine fair competition. The agency warned at the time that the acquisition could result in monopoly in the pay TV market and telecom industry.

However, the government has recently softened its tone over the country’s cable TV providers seeking partnership with telecom companies to compete against global streaming service giants such as Netflix.

“Now the environment on regulations has changed. We will be more open-minded than before when CJ Hellovision requests for a review of the acquisition plan,” FTC Chairman Kim Sang-jo said during an interview with Maeil Business Newspaper last month.

With South Korea gearing up for nationwide 5G network service following the launch of 5G-based smartphones this March, LG Uplus’ acquisition of the country’s biggest cable TV operator is expected to intensify competition.
 
Among ideas being floated is KT’s acquisition of local cable TV operator D’LIVE. Some speculate that SK Telecom is seeking to join the fray after the country’s biggest telecom company’s attempt to acquire CJ Hellovision was thwarted by the government.


By Yeo Jun-suk (jasonyeo@heraldcorp.com)