[2020 National Audit] "Pengsoo, Subsidiary Raised It but Headquarters Took It"

[Asia Economy Reporter Koo Chae-eun] EBS has been criticized for abusing its power over its subsidiary EBS Media by taking away the license for the 'Pengsoo' character.

On the 15th, Rep. Han Junho (Democratic Party) pointed out at the National Assembly Science, ICT, Broadcasting and Communications Committee’s audit held at the National Assembly in Yeouido, Seoul, that "EBS transferred the character licenses, including 'Pengsoo,' from EBS Media to the headquarters last year."

Rep. Han stated, "In November last year, when EBS headquarters was negotiating the revision of the business consignment agreement with EBS Media, they said they would first sign an adjustment agreement only for the character licenses in two phases," adding, "In the first phase, they hurriedly took out only Pengsoo and pushed for the transfer within a week."

According to the materials disclosed by Rep. Han, although EBS Media was running a deficit of 23 million KRW last year, on December 22, seven major characters popular with children, including Pengsoo, Bungeeman, and Ppungppungi, were transferred to EBS headquarters.

Rep. Han said, "From November last year to September this year, EBS earned 10.5 billion KRW in revenue through advertising models, sponsorships, image licenses, and MD businesses using the characters," adding, "This income is comparable to EBS Media’s sales of 11.7 billion KRW last year."

In response, Kim Myung-jung, president of EBS, explained the reason for the transfer, saying, "The character business requires someone with legal expertise; while the headquarters has three lawyers, EBS Media did not." President Kim rebutted, "We generated advertising revenue by utilizing Pengsoo through institutional collaborations, not simply by selling characters to earn 10.5 billion KRW."