[E-Daily Reporter Yun Junghoon ]LG HelloVision(037560) The labor union has filed a request with the Board of Audit and Inspection for a public interest audit to verify whether the approval conditions set by the government at the time of CJ Corp. HelloVision’s acquisition of LG Uplus(032640)in 2019 were properly fulfilled. The union argues that the audit should examine whether promises regarding investment in local channels, subscriber protection, and job security were kept, and should also review the government’s post-acquisition oversight. As the cable TV industry struggles with declining subscriber numbers and deteriorating profitability, attention is focused on whether this request by the union will serve as an opportunity to review not only the promises made at the time of the acquisition but also the government’s broadcasting policies as a whole.

The LG HelloVision Branch, the LG HelloVision Non-Regular Workers’ Branch, and the “We Are LG HelloVision” Call Center Branch—all affiliated with the Public Transport and Services Workers’ Union under the Korean Confederation of Trade Unions (KCTU)—held a press conference in front of the Board of Audit and Inspection in Jongno-gu, Seoul, on the 19th to file a request for a public interest audit. A total of 609 union members, including Shin Ji-eun, head of the LG HelloVision Branch; Kim Taek-sung, head of the Non-Regular Workers’ Branch; and Kim Seung-jin, head of the Call Center Branch, participated as petitioners. The union explained that the three branches have a total of approximately 1,000 members, and more than 60% of them participated in the audit request.

The union raised concerns regarding the conditions LG Uplus promised to uphold when it acquired CJ HelloVision—the top cable TV provider by subscriber count—in 2019. These conditions included maintaining regional and public interest, ensuring fair competition, protecting users, and guaranteeing job stability. At the time, the Ministry of Science and ICT conditionally approved the acquisition, taking into account concerns that the entry of a telecommunications company into the cable TV market could undermine the public interest of local broadcasting and the rights and interests of viewers.

The union has identified four main issues for the audit.

First is whether the promises regarding investment in local channels and broadcast content have been fulfilled. Citing publicly disclosed data, the union claimed that while LG Uplus paid approximately 60 billion won to LG HelloVision from 2020 through the first half of this year, LG HelloVision spent approximately 600 billion won on operating expenses and other costs. The union argues that it is necessary to verify whether investments in local channels and content following the acquisition have been made in accordance with the intent of the approval conditions. However, given the different accounting treatments of the two amounts, the actual scale of investment in local channels and content, as well as compliance with the approval conditions, must be examined separately.

Second is fair competition and consumer protection during the subscriber transition process. The conditions for approval of the acquisition included a prohibition on sales practices designed to induce LG HelloVision subscribers to switch to LG Uplus products. The union claims that efforts to induce subscriber switching through various promotions are taking place on the ground and has requested an investigation into whether these actual sales practices complied with the approval conditions.

Third is the promise of job security and mutual growth with partner companies. According to the union, the number of LG HelloVision employees decreased by 241 (20.5%), from 1,174 in 2019 to 933 as of the end of June this year. The union argued that a wage peak system was introduced for call center agents at a subsidiary without any wage increases, and while installation and repair workers achieved an improvement—the transfer of 50% of their positions to a subsidiary by 2025—progress has stalled since then.

The union maintains that the decline in the number of employees alone does not constitute a violation of the approval conditions. Its aim is to verify the actual impact of the employment stability and win-win measures promised at the time of the acquisition, as well as the criteria the government used to assess them.

Fourth is the question of whether the government’s post-approval oversight was adequate. The union requested an investigation into whether the Ministry of Science and ICT, which approved the acquisition, and the Korea Communications Commission (KCC), which assumed responsibility for related broadcasting operations, conducted the necessary reviews in accordance with their respective authorities and responsibilities. It argued that the audit should also examine whether the accountability structure between the parent company and its subsidiaries was appropriate, and whether it was sound policy to proceed with the telecom company’s acquisition of the cable TV business through a share acquisition rather than a merger.

Branch Chief Shin emphasized, “This request is for a public interest audit to protect the viewing rights of local residents, the right to choose for subscribers, and the rights of workers in the broadcasting industry,” adding, “The Ministry of Science and ICT must provide a responsible explanation regarding its approval and oversight at the time, and the Korea Communications Commission must continue to conduct necessary inspections and follow-up measures based on the duties and materials it has taken over.”

An LG Corp. official stated, “We have faithfully complied with the conditions requested by the Ministry of Science and ICT.”

The government has conducted compliance inspections since the acquisition was approved. However, as stipulated by law, these inspections were carried out over a three-year period following the acquisition. As of July 2021, it was reported that no irregularities were found in the Ministry of Science and ICT’s inspections for the first and second halves of 2020 or in the Fair Trade Commission’s inspections for 2020 and 2021.

A government official said, “The compliance period for the approval conditions is three years from the date of approval, and we verified whether the conditions were faithfully fulfilled during that period.”

The union’s concerns are also linked to the broader financial difficulties facing the cable TV industry. As viewing habits in the pay-TV market have shifted toward online video services (OTT), cable TV subscriber numbers and revenue bases have weakened; however, critics point out that the regulations and cost burdens imposed on existing broadcast operators have not changed sufficiently.

During this period, LG HelloVision, facing repeated declines in performance, implemented voluntary retirement programs three times and relocated its headquarters from Sangam, Seoul, to Samsong, Goyang.

In addition, 13 cable TV operators (SOs) recently filed a lawsuit seeking the revocation of the assessment of their 2026 contributions to the Broadcasting and Telecommunications Development Fund (BTDF), objecting to the imposition of these fees.

Within the cable TV industry, there are calls to use this request for a public interest audit not merely as a means to verify whether individual companies have fulfilled their approval conditions, but as an opportunity to scrutinize the government’s overall policies in response to the industry’s crisis.

A cable TV industry official stated, “The cable TV industry is facing a situation where declining subscriber numbers and deteriorating profitability are reducing its capacity to invest in local channels and services,” adding, “Since the labor union has raised the issue of whether the public interest and employment stability promised at the time of the acquisition have actually been upheld, the government needs to examine not only compliance with approval conditions but also whether the regulatory and support frameworks—including the burden of the Broadcasting and Telecommunications Development Fund—are aligned with the current realities of the industry.”