On What Basis Should Owners of Media Companies`s Be Punished?

The conflict between the ruling party and the opposing party has deepened around the issue of the tax investigation on the media companies. On the one hand, the Grand National Party (GNP) has stepped up the offensive toward the ruling party, defining the tax investigation, conducted by the National Tax Office (NTO) and the Fair Trade Commission (FTC), as the press oppression. However, on the other hand, the New Millennium Democratic Party (NMDP) has criticized that the opposing party are protecting the evasion of taxes.

▼ Grand National Party

Lee Hoi-Chang, the president of the GNP, told yesterday that ``it has been said that the tax investigation on the media companies was just an official investigation, but it can possibly infringe upon and limit the freedom of the press``.

Kim Mahn-Je, the chief policymaker of the GNP, told in the meeting between three representatives of each party that ``the ruling party is intentionally leaking the information that the owners of the media companies will be punished as criminals on suspicions of the tax evasion. But it is not right to punish certain people only in order to create the sensation. Hence, it cannot be acceptable to examine and arrest the owners of the media companies which are the nations`s public institutions``.

▼ New Millennium Democratic Party

Jeon Yong-Hak, the NMDP spokesperson, told in the critical review that ``most media companies regretted that they have not faithfully fulfilled the tax obligations, and pledged to be born again. But if the GNP continues to stand by the press, the GNP cannot avoid the criticism that it tries to have the collusive relationship with the press on behalf of the next presidential election``.

``I clearly remember that, despite the GNP conducted the tax investigation, it colluded with some media companies and abandoned the tax justice hiding the tax evasion and reducing the tax in 1994 when the GNP was a ruling party. At that time, if the GNP executed the law according to the results of the then-tax probe, the result of this tax probe would be very different``.

▼ National Assembly

Rep. Kim Kyung-Jae of the NMDP told in the executive policy council meeting that ``because the media firms have been in a difficult financial situation, they cannot but borrow the loans from the financial institutions in order to pay the retroactive taxes. Therefore, the government should offer convenience for the loans``.

Lee Keun-Young, the chairman of the Financial Supervisory Commission, responded to Rep. Kim`s remarks that the media companies who prepare the same requirements for the loan as the private companies will have no problem to borrow money, and the government will not be involved in the financial institutions` decision-making.

The Finance and Economy Committee meeting was adjourned because the NMDP opposed to the GNP`s demand the attendance of the Sohn Young-Rae, the head of the Seoul Regional Tax Office and the directors of the tax probe teams.

Kim Chang-Hyuk chang@donga.com