By Cho Jae-hyon
City editor

The Lee Myung-bak administration has a knack for shocking people at the end of every year.

On the last day of 2009, Samsung Group Chairman Lee Kun-hee, convicted of tax evasion, was granted an unprecedented special pardon ― he was the sole person who benefited from the presidential exoneration that day.

At the end of last year, the Lee administration also took people by surprise ― it awarded as many as five new cable TV licenses to four major conservative newspapers and Yonhap News, lauding them as the most “fair” media outlets.

This back-to-back year-end special treatment, given to two pillars ordained to spur economic growth and promote key government policies, has profound implications to ponder on.

A seasoned businessman, President Lee knows aggressive investment by the nation’s top conglomerate is an essential element to boost economic growth and create more jobs.

His amnesty granted to the tycoon albeit amid a fierce social backlash is paying off as Samsung Group promised to make the biggest-ever investment and hire the largest number of workers this year, brightening the outlook for economic growth and the job market.

Lee has maintained a honeymoon-like relationship with the four major conservative dailies ― Chosun, JoongAng, Dong-A and Maeil Business ― over the last three years.

What has made the newspapers overly supportive of the government was the anticipation that they, if remaining fit to Lee’s taste, would be picked as the winners of licenses to operate general programming and all-news TV channels.

The newspapers, most of which are struggling with falling subscriptions and dwindling advertising revenue, have been dreaming of venturing into broadcasting since late 2008 when controversial media bills enabling them to operate TV channels were put forward by the ruling Grand National Party. In July 2009, the ruling party railroaded the bills at the National Assembly despite violent protests from opposition parties.

At the time when the bills were passed, the prevalent market perception was that one or two licenses would be awarded. Few expected that five applicants would get the ticket.

Choi See-joong, chairman of the Korea Communications Commission, the state agency regulating the broadcasting industry, has claimed the new cable TV program providers will boost global competitiveness and create more jobs.

But most experts are not that sanguine. Even the selected newspapers know that the sudden advent of such a large number of new broadcasting networks would mean the pie will be sliced into fewer and fewer pieces.

It’s obvious that they are stepping into a “red ocean” awash with unknown risks, fierce competition and industry pressure. These heavyweight newsmakers, already sitting on large debts, have to make huge investments over the next couple of years to equip their stations and take the initiative in the race with their rivals.

To prevent the broadcasting rights from becoming a winner’s curse, the newspapers need more policy favors from the government ― they need a low-digit, easy-to-remember channel number. A drastic deregulation is also necessary to allow pharmaceutical and other business entities to run ads more easily.

For President Lee, a stronger backing from the newspapers is essential ahead of the general and presidential elections scheduled for next year.

However, their amicable ties are unlikely to remain as solid as before as Lee is already showing signs of becoming a lame duck with less than two years of his term left.

The presidency is a post given by the people ― only temporarily ― not to rule over but to serve them. Indeed, the presidential power looks so ephemeral and treacherous ― even some GNP members are already distancing themselves from Lee. A series of blunders Lee made in the process of nominations of unqualified figures to key government posts are expected to hasten the lame duck phenomenon.

In contrast, the power commanded by the conservative newspapers and top chaebol looks eternal relative to the presidential power. It’s true that the power has shifted to the market, especially to a handful of media and business oligarchs that call the shots.

With the newspapers given the right to run TV channels, they will expand their dominance further. But a greater dominance by conservative newsmakers will not come without downsides ― it will stifle diversity of public opinion among other things.

Many experts paint a gloomy picture for the newspapers’ entry into the broadcasting business, claiming it would create a bubble in the media industry.

The odds are low that some of them will collapse, given they know how to sway the government and lenders to their favor when in crisis. That’s why they are betting big on risky broadcasting businesses ― they know market principles do not function effectively for the Korean media industry.

They will remain as almighty as before, while President Lee will bow out of the scene in two years. And the provision of new TV channels to the newspapers will be remembered as a bad legacy he will leave in his wake.