Chairman Kim Hong-il presiding over the Korea Communications Commission
[Photo by Yonhap News]

The Korea Communications Commission (KCC) has consecutively issued corrective orders to companies that violated ownership restrictions on terrestrial broadcasting operators.

On the 24th, the KCC held a plenary meeting at the Government Complex Gwacheon and resolved to issue corrective orders to Mageum, which holds more than 30% of the shares of Daegu Munhwa Broadcasting Corporation (MBC); Samra, which owns 30% of Ulsan Broadcasting shares; and Gyeongnam Enterprise, which holds 17.26% of YTN DMB shares. This is the fourth corrective order for Mageum and Samra, and the third for Gyeongnam Enterprise.

In the case of Mageum, holding more than 30% of terrestrial broadcasting shares is equivalent to having management rights, so approval from the KCC is required. However, Mageum owns 32.5% of the shares without approval, violating the Broadcasting Act.

Samra and Gyeongnam Enterprise, affiliates of the SM Group, are violating the Broadcasting Act by owning 30% of Ulsan Broadcasting shares and 17.26% of YTN DMB shares, respectively, as large business groups are prohibited from owning more than 10% of terrestrial broadcasting shares.

All three companies expressed that it is difficult to find buyers given the current market conditions.

The KCC decided to temporarily withhold actions such as reporting to related agencies, considering the ongoing discussions about the need to revise the Broadcasting Act Enforcement Decree regarding the "10 trillion won total asset threshold for large business groups."

Lee Sang-in, Vice Chairman of the KCC, stated, "Taking into account the various circumstances claimed by the respondents and the ongoing discussions about revising the ownership restriction laws for large business groups, we will reconsider reporting to related agencies later and impose one more corrective order."

KCC Chairman Kim Hong-il also said, "While administrative measures against legal violations are inevitable, I believe the government should listen to various opinions and prepare fundamental solutions."