StageX refuted the Ministry of Science and ICT's previous report and stated that it would implement the procedures outlined in the frequency usage plan.

Stage X refuted the Ministry of Science and ICT's announcement on the 14th that it plans to revoke its candidacy for the fourth mobile carrier, stating that it will review its future response direction by closely analyzing the contents of the press release and related facts.

On the 14th, the Ministry of Science and ICT announced that, after reviewing the necessary documents submitted on May 7 by Stage X Co., Ltd., a company subject to mobile telecommunications frequency allocation, it determined that there were grounds for cancellation of the selection because the company failed to comply with the necessary requirements stipulated by law.

However, StageX refuted the Ministry of Science and ICT’s remarks regarding capital, claiming, “The Ministry reported that the completion of the payment of 205 billion won in capital by May 7, the deadline for submitting necessary documents, was a mandatory requirement, but there is no legal basis for this.”

In addition, stating, “It is not reasonable for the Ministry of Science and ICT to take issue with the application while ignoring the frequency usage plan,” he added, “The capital specified in the application is based on the frequency usage plan and specifies the capital and asset valuation amount, and specifies the ‘final capital,’ which is the capital at the time when all capital raising procedures are completed after approval.”

The Frequency Act and other relevant laws and regulations presented by StageX and According to the outline of the project procedure based on the 'Frequency Usage Plan' submitted to and approved by the Ministry of Science and ICT, Stage X stated, "After being selected as a corporation subject to frequency allocation on January 31, we established a preparatory corporation on April 19 and paid approximately 43.01 billion won, which is 10% of the frequency fee, on May 7."

In addition, it was stated, “Once the Ministry of Science and ICT allocates the frequency in accordance with relevant laws and regulations and the frequency usage plan, StageX simply needs to receive full payment of capital contributions from shareholders and complete the remaining procedures outlined in the frequency usage plan.”

Stage X explained, “On the contrary, it is clear that the time of full payment of the capital of 205 billion won in the ‘Frequency Usage Plan,’ for which Stage X received notification of ‘eligibility’ for the allocation application even after receiving a request for supplementation from the Ministry of Science and ICT, is after the frequency allocation,” adding, “The said Frequency Usage Plan clearly includes the content that each constituent shareholder of Stage X will contribute capital after approval (frequency allocation).”

Meanwhile, prior to the last frequency auction, the government changed the licensing system for key telecommunications operators to a registration system in order to select the fourth mobile carrier. StageX countered, “Retrospectively questioning the capital requirements of a business operator who acquired eligibility as an allocated entity through an auction is a procedure and practice from the licensing system era.”

Regarding the requirements for constituent shareholders, Stage X stated, “In the capital raising plan through the third quarter of 2024, there are no planned changes to the constituent shareholders and stock ownership ratios described in the frequency usage plan, and if there are any changes to major shareholders holding 5% or more, we will immediately notify them and obtain approval.” They added, “As of the date of the report, the constituent shareholders and stock ownership ratios are a phenomenon occurring during the process of sequentially raising the total capital of 205 billion won in the frequency usage plan, so it is unfair to take issue with this.”

Stage X stated, “We have submitted ‘confirmations’ and ‘commitments’ regarding the capital contribution plan to the Ministry of Science and ICT, and it is unfair to distrust the ‘investment participation agreement/letter of intent’ and ‘confirmations’ and ‘commitments’ officially signed by each constituent shareholder, and to demand matters not included in relevant laws and the frequency usage plan approved by the Ministry, as this may constitute a violation of relevant laws.” They added, “We will clarify the facts through a hearing process and proceed with the necessary legal and administrative procedures.”

The Ministry of Science and ICT stated, "We have notified StageX of the planned cancellation of its selection as a frequency allocation entity and plan to make a final decision on whether to cancel the cancellation after a hearing in accordance with the Administrative Procedure Act."