Administrative disposition of MBN, suspension of business for 6 months and 24 hours without cancellation of approval



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When the Korea Communications Commission launched a comprehensive programming channel, it timely allocated 55.6 billion won in investment capital and decided on an administrative provision for MBN, which had been hidden after conducting accounting manipulations for several years. However, the commercial suspension time was delayed by six months. Consequently, if MBN is reapproved in November, all operations, such as advertising and programming, will be suspended as of May 2021.

The Korean Communications Commission determined that the illegal activity of MBN was a major problem in violation of Article 18 of the Broadcasting Law. I chose ‘Close 24 hours’. According to Article 18, Paragraph 1 of the Broadcasting Law, if approval is obtained through false or other fraudulent methods, the approval of a commercial broadcasting operator can be canceled or the business can be suspended within 6 months, the ads may be suspended or the validity period of the approval may be shortened.

In the plenary session that day, the members of the standing committee, Kim Hyo-jae and Ahn Hyeong-hwan, who recommended the power of the people, demanded that the business be suspended from 0 to 6 in the morning. On the other hand, President Han Sang-hyuk and Kim Hyun-up, recommended by the Democratic Party, announced the position of a 24-hour suspension for six months. Kim Chang-ryong, recommended by the Blue House, insisted on the “ cancellation of approval ”, but in accordance with the spirit of the settlement system, he changed his position to “ commercial suspension ” for 24 hours for 6 months . In the end, it was decided to suspend the business for 24 hours on a 3 to 2 basis. The members of the standing committee, Kim Hyo-jae and Ahn Hyeong-hwan, expressed their regret and said, “I feel helpless.”

▲ MBN.  Ⓒ Yonhap News
▲ MBN. Ⓒ Yonhap News

On this day, the Korea Communications Commission said: “MBN issued a paid-in capital increase in April 2011 to meet the paid-in capital for a minimum approval of 395 billion, but some companies gave up and used 16 employees as Nominee shareholders to complete the plan, making the list of shareholders false. “I made false financial statements and continued to make false statements until 2018.” He said, “If we knew that we would not be able to raise 395 billion won normally, the KCC I would not have approved. ”

At a hearing on the 12th, MBN said, “Even if we exclude 55.6 billion won (the minimum paid-in capital), it was over 300 billion won.” It was said that it was. MBN is known to have also emphasized the fact that it was first in the full movie rankings for 70 months after its release. The hearing commissioners said: “MBN, who falsely allocates paid capital and deliberately manipulates the accounting, is not eligible as a full-time PP” and “should be severely punished by the broadcaster that damaged the permit system.”

Permanent member Kim Chang-ryong said, “MBN misled the country and the people in the process of obtaining a license for a broadcasting business. “It is an act of denying the existence of a media company that is illegally licensed by itself, that it has to accuse of a lie for the right of the people to know.” “MBN has no response except for cancellation of approval. (If it reaches commercial suspension) I am concerned that I could be charged with abuse of discretion. ”

Standing Committee member Kim Chang-ryong said, “Chairman Jang Dae-hwan of Maekyung Media Group has collected 3.6 billion won in severance pay. There was a serious fault and he said he knew nothing. He also pointed out that the moral hazard of the keys of the media company ”.

On the other hand, standing committee member Kim Hyo-jae said, “There is no room for controversy over the facts. At the time of its launch, other commercial operators faced the same difficulty in recruiting shareholders, but only MBN did. Although the approval must be canceled, the confusion that will inevitably occur must be weighed. MBN claims that there are no serious victims of their violations. As a stable full-length broadcaster, he has been faithfully fulfilling his role as a full-length broadcaster, with a business reaching one billion KRW. He said: “It was the most explosive fund among the top four companies,” he said, citing the controversy after the Lotte Home Shopping business suspension case. “Revocation of MBN approval is excessive abuse of administrative authority” and “Suspension is reasonable.

Vice President Kim Hyun said, “Because the initial approval was bogus, a new approval and a new approval cannot be admitted either. However, in the process of discussing the administrative provisions, the requests of the subcontracted producers and the opinions of the workers were also heard. MBN, which obtained the initial approval by hiding the crime, deserves the cancellation of the approval, but it is weak, but the public apology and mansijitan, but there was also a resignation of CEO Jang Seung-joon. I have to get off. “

Standing Committee member Ahn Hyung-Hwan said: “Administrative arrangements must be made effectively and reasonably within the scope of our discretion. The revocation of approval is excessive. The six-month commercial suspension is close to canceling the approval from the issuer’s point of view. “Even if transmission resumes after six months, it can be difficult. Millions of people are condemned to be threatened with their livelihoods. “Why should employees be harmed by management?” He said. “It is a serious crime, but we must consider how many victims it has.

Standing Committee member Ahn Hyung-hwan said: “The court did not judge that a competitor was eliminated from the final game due to this act. Revocation of approval now or suspension of work for six months can lead to damage to employees as well as viewing rights. To minimize these damages, the commercial suspension should take place during the first hours of the morning, excluding the main viewing hours. It can be pointed out that the public interest is undermined, but it can be done through criminal charges against senior management. ”

▲ The general meeting of the Korea Communications Commission on October 30.  Photo = Korea Communications Commission
▲ The general meeting of the Korea Communications Commission on October 30. Photo = Korea Communications Commission

Subsequently, Kim Chang-ryong changed his proposal to a 24-hour, 6-month trade suspension in accordance with the spirit of the settlement system. On that day, the standing committee member, Kim Chang-ryong, said, “I wanted a proposal under any circumstances. However, since several committee members emphasized the spirit of the settlement system, we cry and desist from the proposal.

However, Kim Hyo-jae said, “It is beyond the discretion of the administrative agency. A six-month commercial suspension is the same as closing the door, “said Vice President Kim Hyun, saying,” MBN management did not seem to take action in line with the level of public demand for media reform. ” Finally, the Korea Communications Commission decided to suspend the business for 24 hours and 6 months as final chief of administrative disposition after going through a regular meeting.

The Chairman of the Korea Communications Commission, Sang-hyuk Han, said: “All members recognize the seriousness of the matter. Although the suspension of the business for the six months is a serious provision, it is not an objective opinion that the broadcasting business will have the same effect as the cancellation. “He said:” It is a pity that we have not been able to reach the agreement.

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