MBN Granted Conditional Renewal for 3 Years... Avoided License Cancellation (Update)

[Image source=Yonhap News]

[Asia Economy Reporter Koo Chae-eun] MBN has received a 3-year "conditional re-approval" from the Korea Communications Commission. Although the approval cancellation was avoided, as a condition for re-approval, it was required to establish management innovation plans, improve financial soundness, and prepare measures to protect outsourced production companies.

On the 27th, the Korea Communications Commission held the 64th committee meeting at the Government Gwacheon Complex and approved the re-approval of the comprehensive programming channel operators JTBC and MBN, whose approval validity expires on the 30th of this month. JTBC scored 714.89 out of 1000 points without any failing marks in the key evaluation items and received re-approval.

On the other hand, MBN scored 640.50 out of 1000 points, which is below the approval standard score of 650. Although the key evaluation items were satisfactory, a failing mark occurred in item 5 of the individual evaluation items, "Implementation of support plans for broadcasting development and compliance with broadcasting laws and regulations."

The score shortfall was largely influenced by the fact that when it was first approved as a general programming business operator in 2011, the company mobilized funds to acquire 60 billion KRW of treasury stock under a borrowed name and engaged in accounting fraud. The prosecution indicted some related parties, and the first trial court delivered a guilty verdict on July 1. MBN acknowledged the accounting fraud through the "2019 audit report" disclosed in March 2020 and revised the financial statements.

When suspicions of MBN's capital fund manipulation were raised, the Korea Communications Commission requested an investigation by the prosecution in November last year, and based on the guilty verdict, decided on administrative measures and imposed a six-month business suspension last month.

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