Court Grants Stay on 'MBN Suspension' Until Second Trial Verdict

Seoul High Court.

[Asia Economy Reporter Kim Daehyun] In 2020, comprehensive programming channel Maeil Broadcasting Network (MBN), which filed an appeal against the Korea Communications Commission's '6-month suspension of business' order and lost in the first trial, has temporarily escaped the risk of suspension.

On the 30th, the Seoul High Court Administrative Division 10 (Presiding Judges Seong Suje, Yang Jinsu, Ha Tae-han) accepted MBN's application and decided to suspend the execution (suspension of effect) of the Korea Communications Commission's 6-month suspension order. Suspension of effect is a court order that temporarily halts the effect of an administrative disposition until the main judgment is made.

The first trial court ruled against MBN, stating, "It is difficult to see any significant procedural illegality in the Korea Communications Commission's review process." The first trial court stated, "The plaintiff has enjoyed considerable economic benefits so far, and the fact that this disposition may cause enormous economic losses is not an appropriate factor to consider when judging the violation of the proportionality principle," adding, "The necessity to protect private interests cannot be considered high simply because the illegal gains have been sustained for a long time."

In particular, it emphasized, "Unlike private companies, the plaintiff has public nature and accordingly requires a high level of public responsibility, fairness, and public interest. Nevertheless, the plaintiff intentionally committed each violation in this case," and "Considering the methods, 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." After losing in the first trial, MBN appealed and again applied for suspension of effect at the Seoul High Court.

Previously, on November 25, 2020, the Korea Communications Commission imposed a 6-month suspension on MBN for illegally raising capital in violation of the Broadcasting Act. However, to minimize damage to partner companies, the suspension was deferred for 6 months, and the actual broadcast stoppage began at the end of May the following year.

MBN filed an administrative lawsuit against the Korea Communications Commission's disposition and, about three months into the deferral period, obtained a suspension of effect (suspension of execution) decision in February last year, which temporarily halted the effect of the Korea Communications Commission's order for 30 days after the first trial judgment, allowing the broadcast to continue.