Yonhap News Takes Legal Action Against Portal Removal "Unfounded Contract Termination Rights Granted"
"Impossible to Confirm Whether Apology and Follow-up Actions Were Reflected in the Decision"
Yonhap News Agency is legally challenging the termination of its news content contracts with portal sites Naver and Kakao. On the 15th, it submitted an application for a 'preliminary injunction to suspend the effect of contract termination' to the Seoul Central District Court. It argued that the contract termination was carried out solely based on the unilateral internal decisions of the portal companies, violating the Act on the Regulation of Terms and Conditions (Terms and Conditions Act).
The News Alliance Evaluation Committee (Je-pyeong-wi), jointly operated by Naver and Kakao, recommended contract termination on the 12th, stating that some Yonhap News articles sent to the portals from March to July this year fell under 'transmission outside the registered category (advertorials)'. Naver and Kakao accepted this recommendation, and Yonhap News's news content contract with the portals will be terminated on the 18th. Previously, exposure on the portals was suspended for 32 days for the same reason. Despite a public apology and promises of social restitution, Yonhap News is effectively facing expulsion.
Yonhap News bases its denial of the contract termination on the Terms and Conditions Act. The law stipulates that terms granting the right to terminate contracts without legal grounds are invalid. This also applies when a business operator can easily terminate a contract, potentially causing disadvantages to customers. Naver's terms specify that the company can immediately terminate the contract upon notification. It also states that 'no objections should be raised against compliance with the opinions of the Je-pyeong-wi.' Kakao's terms similarly mention only that 'requests, opinions, and recommendations of the Je-pyeong-wi must be complied with,' without addressing any procedures for raising objections. Yonhap News claimed, "Naver has operated by confirming whether media companies agree whenever it changes the terms," adding, "In fact, it has been changing and notifying the terms unilaterally."
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Yonhap News also expressed regret that the Je-pyeong-wi did not disclose the total score and scoring details it assigned. The Je-pyeong-wi recommends contract termination if the evaluation score is below 80 out of 100. Yonhap News stated, "We cannot even confirm whether our apology and follow-up measures were reflected in the decision," and argued, "Exercising an illegal right to terminate the contract without even giving an opportunity to explain is a serious disadvantage." It further pointed out, "If the contract is terminated and we are expelled from the public discourse arena, irreparable damage is inevitable," and noted, "Even if the injunction is granted, the portals will suffer little or no damage."
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