Studio Prism, a subsidiary of SBS Media Group, received a warning from the Fair Trade Commission for violating regulations on subsidiary conduct.
On the 19th, the Fair Trade Commission imposed a corrective order on Studio Prism for violations of regulations concerning subsidiary conduct under the Monopoly Regulation and Fair Trade Act.
The Fair Trade Act stipulates that a subsidiary of a general holding company may not own shares of domestic affiliated companies. This is to limit the investment stages to three and maintain a transparent vertical investment structure. Ownership of shares in domestic affiliated companies is only recognized exceptionally when the subsidiary holds 100% of the issued shares of the domestic affiliated company.
However, from February 27 to September 5 last year, Studio Prism owned 1,125,796 shares (99.999% equity) of SBS Media Net, a domestic affiliated company. Studio Prism is a subsidiary of TY Holdings.
On September 6 last year, Studio Prism acquired an additional 13 shares (0.001%) of SBS Media Net, resolving the legal violation.
The Fair Trade Commission noted, "We plan to continuously monitor violations by holding companies, subsidiaries, and other entities and impose strict penalties when violations are detected."