SK-Shinsegi merger approval questioned

It is in doubt that the Fair Trade Commission fabricated the decision by FTC's full-member meeting regarding last April's integration between SK Telecom and Shinsegi Telecomm.

Rep. Kim Boo-Kyum of the Grand National Party disclosed an original copy of the FTC's resolution on SK Telecom's acquisition of Shinsegi Telecomm, saying that the contents of resolution have been fabricated in the process of formal announcement.

If Kim's allegation is found to be true, the integration of market leader SK Telecom and Shinsegi Telecomm, the third largest carrier, would trigger a controversy with strong protest from competitors.

The FTC examined the case Apr. 26 with participation of all commission members and announced the result Apr. 27, an account that differs from the original resolution. However, the FTC uploaded the original resolution on its own Web site May 16.

The FTC press release pointed out that corporate integration in the telecommunications industry is a global trend. Also, it noted that the importance of the existing mobile phone market would be sharply reduced if IMT-2000 service is commercialized from 2002.

Kim contended that the FTC's resolution emphasized the negative aspects of the integration between SK Telecom and Shinsegi Telecomm, adding that it is necessary to investigate whether there was any outside pressure in the process of announcing the results.

Meanwhile, Kim Byung-Il, vice chairman of the FTC, said that contents of the press release are identical to the resolution but that there must be some misunderstanding because it focused on the reason to approve the merger bid.