FTC to investigate media institutions

Following the National Tax Service¡¯s investigation into press institutions, the Fair Trade Commission (FTC) has decided to conduct a sweeping probe on irregular inside transactions and unfair trade practices among press institutions.

After holding a meeting of FTC executive members, presided by Chairman Lee Nam-Kee, the commission announced, ¡°The FTC will conduct intensive investigations into possible irregular inside transactions of companies in the six fields -- press institutions, including newspapers, broadcasting, and magazines, academies, information and telecommunication, medical and pharmaceutical companies, ceremony halls and funeral halls, and construction -- for 50 days from Feb. 12 to the end of March.¡±

The FTC probed newspaper-publishing companies once in 1994, but it is the first time for the FTC to investigate them for unfair inside transactions.

The objects of the first-phase investigation are 10 newspaper companies, including Donga Ilbo, Chosun, Joongang, Hankuk, Kyunghyang, Kookmin, Munhwa, Segye, Hankyoreh, and the Korea Daily News, and three broadcasting companies -- KBS, MBC, and SBS.

The FTC has decided to dispatch four task forces comprising 37 investigators to major press institutions.

The focus of the investigations will be placed on whether or not of unfair inside transactions, unfair supports to large enterprises after separation from a group, pre-arrangement of subscription and advertisement fees, gift presentation for appreciation, free distribution, and related unfair trading practices.

The FTC plans to conduct its first-phase probe on 13 press institutions until the end of March, and expand its investigations into economic newspaper companies and provincial-based newspaper companies, if necessary.