Park Ji-won is a writer for The Korea Times who has been covering a wide range of topics from Korea’s culture to its politics. An avid journalism enthusiast to the core, Ji-won brings a thoughtful and unique perspective to every topic she covers. On weekends, you'll often find her contemplating life’s purpose on a yoga mat — with a cup of quality tea in hand. A native Korean speaker by birth and fluent in English through her work, she went to college in Japan and is learning Chinese and French — hoping to add Polish, Russian and Thai to the mix.
MBN gets 6-month broadcasting suspension due to accounting fraud
MBN Yonhap
By Park Ji-won
By Park Ji-won
The Korea Communications Commission (KCC) announced Friday that it was suspending the Maeil Broadcasting Network's business license for six months, following the company being fined in July after its management was found guilty of committing fraud to gain licensing approvals in 2011, 2014 and 2017.
Specifically, the KCC said in a statement: “The KCC held a general meeting Friday and decided to suspend all programming for MBN for six months based on Decree 17 of Article 18 of the Broadcast Law.”
MBN will not be able to air programs from May next year for six months after a six-month grace period.
The company is a cable network which airs a variety of news, drama, documentary and entertainment programs and provides online services.
This is the first time a cable network that produces news programs has had its license suspended.
The KCC added that the six-month grace period was given to minimize damage to subscribers and subcontracting companies due to the suspension.
It also stated that the case will be referred to the prosecution for an investigation into the illegal activities.
The KCC members were divided over the decision ― members affiliated with the ruling Democratic Party of Korea wanted MBN's license cancelled or suspended for six months, while members close to the opposition People Power Party favored a partial suspension.
The decision came after the management of the company was found guilty of accounting fraud by getting a loan worth 55 billion won ($48.7 million) through borrowed-name accounts to boost its capital to 300 billion won to establish the company, and buying shares with the loan. It also submitted false business reports to renew its license twice. The company was fined 200 million won ($176,775) while company executives were fined 15 million won or received suspended jail terms.
The MBN union released a statement after the KCC decision saying, “We understand it as a realistic decision to punish the illegal actions of the company, while considering the rights of the employees working for MBN.”
Earlier on Thursday, the network issued an apology.
“The company caused trouble by using borrowed-name accounts in the process of financing to gain the broadcasting license in 2011. We will deeply reflect on ourselves because public trust is vital for a broadcasting company. We apologize to the people who have supported MBN.”