MBN Loses First Trial in Appeal Against KCC's '6-Month Suspension' Sanction

[Asia Economy Reporter Kim Daehyun] Maeil Broadcasting Network (MBN) filed a lawsuit challenging the Korea Communications Commission's (KCC) "6-month business suspension" order in 2020 but lost in the first trial.

On the afternoon of the 3rd, the Administrative Division 2 of the Seoul Administrative Court (Chief Judge Shin Myunghui) ruled against MBN in the first trial of the lawsuit seeking cancellation of the business suspension order filed against the KCC, stating, "It is difficult to find any significant procedural illegality in the KCC's review process."

The court stated, "The plaintiff has enjoyed considerable economic benefits so far, and the fact that the plaintiff may suffer massive economic losses due to this order is not an appropriate factor to consider when judging whether the proportionality principle was violated," adding, "The need to protect private interests cannot be considered high simply because the illegal gains were sustained for a long period."

In particular, the court emphasized, "Unlike private companies, the plaintiff has public characteristics and accordingly is required to uphold a high level of public responsibility, fairness, and public interest. Nevertheless, the plaintiff intentionally committed the violations in this case," and "Considering the methods and content, duration, and degree of public interest infringement comprehensively, the public's trust in the broadcasts transmitted by the plaintiff and in the plaintiff as a media organization must be regarded as seriously damaged."

Earlier, on November 25, 2020, the KCC imposed a six-month business suspension on MBN, citing violations of the Broadcasting Act by illegally raising capital. However, to minimize damage to partner companies, the suspension was deferred for six months, and the actual broadcast stoppage began at the end of May the following year.

MBN filed an administrative lawsuit challenging the KCC's order. Additionally, about three months into the deferral period, in February last year, MBN obtained a suspension of execution order that temporarily halted the effect of the KCC's order for 30 days after the first trial ruling, allowing it to continue broadcasting.

If the first trial ruling is finalized on this day, the effect of the KCC's order will be reinstated 30 days later. In this case, after the remaining three-month deferral period ends, the business is expected to be suspended for six months. However, if MBN appeals, it can apply again for a suspension of execution at the High Court.

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