Court halts 6-mth business suspension penalty on cable channel MBN

An appellate court on Wednesday halted a six-month business suspension penalty cable TV channel MBN had received on accounting fraud charges.

The Korea Communications Commission (KCC) handed the heavy punishment in November 2020 with a six-month grace period, concluding the channel illegally raised its capital in violation of the broadcasting act.

The channel lodged an administrative suit challenging the suspension order, along with a request for a separate court injunction halting the effect of the suspension order.

In a ruling in early November, the Seoul Administrative Court sided with the communications commission’s business suspension decision, citing the seriousness of irregularities committed by the cable channel.

MBN again sought an injunction from the Seoul High Court seeking to stop the business suspension order from taking effect.

The Seoul High Court on Wednesday granted the injunction, allowing the suspension of the six-month penalty until 30 days after an appellate court’s decision on the main lawsuit the channel filed against the communications commission.

The six-month broadcasting suspension order was to take effect in early March if MBN failed to win the additional court injunction, given that the channel had three months left in the grace period and the effect of the first injunction expires 30 days after the channel loses the first suit.

“The decision by the communications commission could cause irrevocably heavy social or financial damage to the applicant,” the court said, recognizing an “urgent” need to halt the penalty to prevent such damage.