FTC to investigate four newspaper companies

The Fair Trade Commission (FTC) has decided to begin an investigation of four newspaper companies Monday on suspicion they engaged in unfair trading practices and irregular inside transactions. The FTC intends to notify the firms of the timing and scope of the probe Friday.

"After investigating 10 newspaper companies and three broadcasting firms, the FTC will publicly unveil the results of the probe and take appropriate action, including penalties, against those found to have violated the law," said FTC chairman Lee Nam-Kee Thursday.

Noting that the FTC had considered looking into 20-30 business lines while preparing a "clean market" project since October last year, Lee said, ¡°We selected six business lines which have a significant impact on the people¡¯s daily lives, including media firms. We have no intention of going beyond these companies.¡±

Noting that there were no prior negotiations with Cheong Wa Dae or government ministries in the process of selecting firms subject to the probe, he said, ¡°We agonized over whether or not to include media institutions in the investigation, as the probe overlaps with the National Tax Service¡¯s investigation. We have finally decided independently to include them in the probe at this time.¡±

Citing the free distribution of newspapers and the giving of gifts as the biggest problems in the media sector, Lee said, ¡°Based on the results of the first-phase of on-site investigations, the FTC will draw up an institutional reform plan, in addition to correction steps, as a means of improving the market structure.¡±

Yonhap