MBN's Unprecedented '6-Month Business Suspension' Sanction... Criticism of 'Light Punishment' and 'Get-Out-of-Jail Free Card'

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[Asia Economy Reporter Joselgina] The comprehensive programming channel MBN (Maeil Broadcasting Network), which violated the Broadcasting Act by illicitly covering capital, has been ordered to suspend operations for six months starting from May next year. Although it avoided the worst-case scenario of license revocation, a six-month broadcasting halt would inevitably cause significant damage.

However, if MBN files an administrative lawsuit during the grace period, the enforcement of the suspension will be immediately halted, leading to criticism from civic and media organizations that the punishment is too lenient.

Broadcasting Commission Orders 6-Month Suspension for MBN

The Korea Communications Commission held a plenary meeting at the Government Complex Gwacheon on the afternoon of the 30th and resolved to suspend MBN’s operations for six months due to violations of the Broadcasting Act. The broadcast will not be stopped immediately. The Commission set a six-month grace period to minimize damage to viewers and partner companies such as external production firms. MBN and its representatives who committed illegal acts will also be criminally prosecuted.

This is an unprecedented severe sanction for a nationwide comprehensive broadcaster to be completely suspended for six months. However, since disqualifying reasons sufficient to invalidate the comprehensive programming channel approval were confirmed, there are criticisms that this is effectively a pardon. It is also possible that MBN will file a lawsuit opposing the suspension. In that case, the administrative sanction of six months’ suspension will be suspended.

It was confirmed that MBN, at the time of its launch as a comprehensive programming channel in 2011, used nominee shareholders among executives and employees to pay part of the paid-in capital (395 billion KRW) with company funds, submitted false documents during the initial approval in 2011, thereby deceiving the government and obtaining approval as a comprehensive programming PP through acts recognized as fraudulent and socially unacceptable. During the re-approvals in 2014 and 2017, MBN again submitted false shareholder registers and financial statements and obtained re-approval as a comprehensive programming PP.

This corresponds to "obtaining approval or re-approval by false or other fraudulent means" under Article 18 of the Broadcasting Act. Under current law, this is grounds for license revocation.

Kim Hyun, Vice Chairman of the Broadcasting Commission, stated, "MBN is a broadcasting operator that should be based on the trust of the people and has the duty to expose and monitor illegal acts and corruption in society. All standing commissioners of the Commission agreed that there must be strict punishment according to the law for MBN’s illegal acts committed during the comprehensive programming PP approval process."

However, considering comprehensively MBN’s 26 years of broadcasting business, concerns about damage to partner companies such as external production firms and viewers, and employment issues, mitigating factors under the Enforcement Decree of the Broadcasting Act were applied, he explained.

Criticism of "Leniency Toward Comprehensive Programming Channels"... Opposition Claims "Government’s Broadcasting Takeover"

Voices of criticism continue mainly from civic and media organizations. The Media Reform Citizens’ Coalition stated in a press release the day before, “MBN applied for broadcasting approval and re-approval through illegal and improper methods, did not resolve or disclose the illegalities during the process, showing a very bad and serious nature,” and pointed out that “considering the public responsibility of broadcasting and the gravity of the crime, the suspension of operations is actually a light punishment.”

The Citizens’ Coalition for Democratic Media also criticized, “A six-month grace period suspension for MBN, which manipulated accounting worth 60 billion KRW? Is the media above the law no matter what illegal acts it commits?” and “This is another lenient treatment for MBN, which has continuously committed various criminal acts to the extent that it can be called an ‘illegal department store.’” They warned that if legally recognized guilty parts through trials are not properly punished, the law and standards for sanctioning comprehensive programming channels will inevitably be undermined.

The Broadcasting Independence Citizens’ Action demanded the dissolution of the Commission in a statement titled “The Commission is undermining its own authority and encouraging the misconduct of private broadcasters’ owners.” They called the decision “irresponsible” and urged the Commission’s disbandment.

During the plenary meeting held from 2 p.m. the previous day, the commissioners were sharply divided over two proposals from the secretariat: license revocation and six months’ full or partial suspension. Kim Hyun, a ruling party appointee and Vice Chairman, voted for six months’ full suspension. Standing Commissioner Kim Chang-ryong also initially advocated license revocation but gave it up in favor of the collegial spirit and changed to six months’ full suspension.

On the other hand, opposition appointees Commissioner Kim Hyo-jae proposed partial suspension, and Commissioner Ahn Hyung-hwan suggested suspension during early morning hours (0-6 a.m.) excluding prime viewing times. With no consensus reached, Chairman Han Sang-hyuk voted for six months’ full suspension, concluding the vote.

In response, People Power Party lawmakers from the National Assembly’s Science, ICT, Broadcasting and Communications Committee including Park Sung-joong, Park Dae-chul, Kim Young-sik, Jung Hee-yong, Cho Myung-hee, Heo Eun-ah, and Hwang Bo-seung-hee immediately issued a statement claiming, “After taking control of terrestrial broadcasters like KBS and MBC, the Moon administration is now attempting to seize comprehensive programming channels, a broadcasting outrage.” They urged withdrawal, saying, “MBN, which recorded an operating loss of 3.7 billion KRW in the first half of the year, faces a death sentence with a six-month suspension. The viewing rights of over 9 million viewers, thousands of jobs, many external production companies’ damages, and future freedom of the press will be seriously infringed, which is obvious.”

MBN issued an official statement saying, “We apologize once again to the public for this situation,” but also stated, “Although the Commission’s sanction has been imposed, we will do our best to prevent the broadcast from being interrupted.”

MBN, which was conditionally re-approved three years ago, is also preparing for its re-approval review. Separately from this sanction, the Commission plans to proceed with the re-approval reviews for MBN and JTBC, whose approval periods expire on the 30th of next month, as scheduled. The Commission stated, “We will strictly operate the licensing and approval system for broadcasters according to laws and principles to prevent illegal acts from occurring again during the permission and approval process.”

This content was produced with the assistance of AI translation services.