KLPGA Broadcast Rights Bid Halted... Court Rules "Unfair Clause"

JTBC Discovery's Injunction to 'Suspend Bidding Process' Granted
"Clause on 'Penalty Payment for Legal Objections' Violates Participants' Right to Trial"

Seoul Central District Court. Image source=Yonhap News

[Asia Economy Reporter Jang Hee-jun] The court has issued an injunction to halt the bidding process for selecting the next broadcasting rights holder of the Korea Ladies Professional Golf Tour (KLPGT), which is expected to cause delays in the schedule.

According to the legal community on the 12th, the Seoul Central District Court Civil Division 50 (Chief Presiding Judge Song Kyung-geun) approved the provisional injunction request on the 10th filed by JTBC Discovery (JTBC Golf) against KLPGT to preserve its status in the second round of evaluation and to suspend the bidding process.

The court ruled that JTBC Discovery, which was eliminated in the first round of the broadcasting rights bidding by KLPGT, must be reinstated as a candidate for the second round of evaluation, and that the second round should not proceed excluding JTBC Discovery.

Previously, on the 11th of last month, KLPGT announced a bidding notice to select the broadcasting rights holder for the next five years from 2023 to 2027. Among the terms, a pledge clause requiring a penalty payment of 2 billion KRW to KLPGT if legal objections were raised during the evaluation was deemed an excessive provision. JTBC Discovery filed a provisional injunction on the 21st of last month, claiming infringement of its right to a fair trial and other rights.

The court dismissed the injunction on the 28th of last month, considering that KLPGT had deleted the 2 billion KRW penalty clause. However, JTBC Discovery immediately appealed and participated in KLPGT’s bidding for the next broadcasting rights on the 2nd. They did not sign the pledge stating "to fully accept the results and not raise objections," adding a reservation to withhold signing until the court’s ruling on the validity of the clause.

Subsequently, KLPGT disqualified JTBC Discovery in the first round of evaluation, citing failure to comply with bidding guidelines. JTBC Discovery then filed another provisional injunction to preserve its status and suspend the bidding process, which the court approved on the 10th.

The court viewed the series of bidding procedures as seriously infringing on participants’ rights to judicial claims and legitimate objections, ruling KLPGT’s original bidding terms invalid. Furthermore, the court found that the revised notice also contained illegalities that could excessively restrict participants’ freedom of action.

The bench stated, "Considering KLPGT’s attitude during the bidding process, there is a significant risk of arbitrary interpretation and application of the clause in question," and added, "Disqualifying JTBC Discovery from the document screening because they withheld signing the pledge is an act that severely undermines the public nature and fairness of the bidding process, and is likely to be deemed invalid."

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