TVING-Wavve merger greenlit by South Korea Fair Trade Commission

On June 10, the Fair Trade Commission decided to grant conditional approval for the business merger filing involving CJ ENM and TVING executives concurrently holding executive positions at Wavve. Maintaining the current subscription fees until the end of next year (2026) is a condition.

On Tuesday, the Fair Trade Commission approved the potential merger of TVING — a CJ ENM affiliate — and Wavve, whose biggest shareholder is SK Square, under the condition that both maintain their current subscription prices to ensure fair competition in the market. The two companies previously signed an agreement on November 27, 2024, to appoint TVING executives to Wavve’s board. Request for approval from the FTC was filed on December 26, and Tuesday’s announcement marks the first official governmental step toward greenlighting the merger.

Currently, TVING’s subscription plans, excluding the most affordable ad-supported Standard plan at 5,500 won per month, are Basic at 9,500 won, Standard at 13,500 won, and Premium at around 17,000 won.

Wavve, which does not have an ad-supported plan, offers Basic at 7,900 won, the lowest subscription plan. Standard is priced at 10,900 won and Premium at 13,900 won.

The Fair Trade Commission has imposed corrective measures to ensure that even if TVING and Wavve are integrated into a single service, there will be no effective increase in subscription fees.

The two companies are hoping the merger will serve as a turning point to reclaim leadership in the distribution of K-content locally. The merger is seen as an opportunity for TVING and Wavve to expand investment in content, enhance platform operational efficiency and service innovation, maximize user satisfaction, and strengthen global competitiveness.

TVING and Wavve are currently the second and fourth-biggest players in the South Korean OTT market, respectively. If the merger is completed, they will come close to rivaling the dominant Netflix.

According to the IGAWorks Mobile Index, Netflix had 14.5 million monthly active users (MAU) last month. A combined total of TVING (7.16 million) and Wavve (4.13 million) would reach 11.29 million.

With the Fair Trade Commission’s approval, if executives from both companies are appointed as board members for each other, it will enable substantial business cooperation, such as executive dispatch.

Although nothing has been finalized yet, the two OTTs have been in ongoing discussions to ensure efficient operations.

A representative from TVING and Wavve stated, “Wavve and TVING will combine their respective expertise and capabilities to offer users a wider variety of content and a better viewing experience,” adding, “We will focus on strengthening the competitiveness of K-OTT and take the lead in building a sustainable K-content ecosystem.”

However, the Fair Trade Commission’s approval does not mean the merger is complete. Finalization still requires full consultation and agreement from all shareholders of both companies.

KT, a major shareholder of TVING, has previously expressed skepticism regarding the merger. KT’s subsidiary, KT Studio Genie, holds a 13.5% stake in TVING.

Executive Director Kim Chae Hee, also the Head of KT’s Media Division, stated at a media talk in April, “It’s questionable whether this aligns with the interests of TVING’s shareholders.”

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