Will MBN's 'Naneun Jayeoninida' Not Air Next Year?
Passed General Programming Channel Reauthorization
6-Month Suspension Still Valid
No Variables in Administrative Lawsuit
Broadcast Suspension from May 26 for 6 Months
[Asia Economy Reporter Koo Chae-eun] Maeil Broadcasting Network (MBN), which was embroiled in controversy over illegal capital replenishment, narrowly survived by receiving conditional re-approval from the Korea Communications Commission (KCC), but the '6-month business suspension' penalty remains in place. Accordingly, unless there are variables such as administrative lawsuits, it is expected to face a 'broadcast suspension' situation for half a year starting from May 26 next year.
On the 27th, the KCC resolved to grant MBN a '3-year conditional re-approval.' The approval period is from December 1 to November 30, 2023. Considering the submission of improvement plans such as management transparency measures and outsourcing win-win plans, the 'conditional re-approval' was decided.
However, separate from MBN's conditional re-approval, the 6-month business suspension must be implemented next year. Earlier, the KCC referred the investigation of MBN's suspected illegal capital replenishment to the prosecution in November last year, and upon receiving a guilty verdict, imposed a '6-month business suspension' penalty. The grace period is 6 months, ending on May 25 next year.
During this period, unless MBN files an administrative lawsuit and the court issues a stay of execution on the KCC's decision, the 'business suspension' decision remains valid.
A KCC official explained, "The business suspension period is deferred until May 25, and the broadcast suspension period of 6 months will begin from May 26." Accordingly, from May 26 next year, MBN will not be able to broadcast any programs, including popular shows such as 'I Am a Natural Person,' 'Voice Trot,' dramas, entertainment, or news.
Within the industry, although MBN survived the re-approval, there is expected to be significant confusion as there is no precedent for the enforcement of a '6-month full broadcast suspension' penalty. During the 6-month grace period before the broadcast suspension, MBN must sufficiently notify viewers about the broadcast suspension. Additionally, the survival of outsourcing production companies that produce MBN programs and PP companies that use the MBN channel will face a major threat. However, it is unclear whether MBN's broadcast programs on OTT platforms or YouTube, which are not governed by the Broadcasting Act, will be suspended.
Accordingly, the KCC included measures in the re-approval review to hold MBN economically responsible for damages caused by the '6-month business suspension' penalty and imposed a condition that the major shareholder does not intervene in the broadcaster's operations and internal personnel matters.
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There remains a possibility to overturn the broadcast suspension penalty. If the court issues a stay of execution on the KCC's administrative disposition, the business suspension decision can be overturned. MBN indicated the possibility of an administrative lawsuit on October 30 after the business suspension decision, stating, "If the broadcast is interrupted, the viewing rights of an average of 9 million households per day will be restricted, the employment of about 3,200 people involved in program production will become unstable, and about 900 shareholders will suffer significant damage. Considering these points, we will prepare comprehensive measures including legal responses."
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