MBC Attempts to Change Zoning at Will

One of the major broadcasting companies in Korea, MBC has purchased a chunk of land in the size of 48,000 square meter in Ilsan, Koyang City, Kyunggi Province to build its recording studio complex. It has become known that MBC plans to construct numerous units of condominiums within the complex. Therefore, some experts point out that construction of condos in the complex is in substance a change of the original zoning, raising a suspicion that MBC has received a special favor.

According to the joint press release by MBC and the Goyang city government, MBC has filed with the city government its project outline and relevant applications to build a studio complex in the city. According to the outline of MBC, it plans to build various recording facilities including 5 studios and auditoriums on the land that MBC purchased from the Korean Land Corporation in 1994 for \64.2 billion (approximately $5.3 million). The lot is located at 869 Changhang Dong, Ilsan Gu, Ilsan City.

If the city government approves of the construction, MBC will also have SK Construction build, for three years from March of 2003, a 15-story building accommodating 1,500 units of condos on the part of the land earmarked for the studio complex.

Minister of Construction and Transportation has zoned the area, upon which the complex is expected to be set up, for construction of business facilities, especially for communications and recording facilities.

MBC has verified, in the outline filed with the city, that it would earmark out of the total land to be developed 28.17% for broadcasting facilities, 48.31% for condos, 13.84% for offices, 9.43% for lodgings and associated facilities and 2.25% for concessions.

Out of the 1,500 condo units, MBC expects to use only 25% for broadcasting purposes by giving units to its crew members and the personnel from other affiliated companies. The rest of the units will be sold to the general public by commissioning the sale to SK Construction.

MBC has alleged that the total percent of the area used for construction of the recording facilities amounts to 61.5%, when including in the definition of the facilities restaurants, barber shops, laundry shops, 25% of the condos, just name a few.

Regarding the allegation, one city official commented, "How could they [i.e. MBC] include in the facilities condos and all kinds of shops like restaurants? Those shops are not just for MBC employees. Everyone can use those shops. We don`t get it. How could they come to that conclusion?"

In addition, the city government has not allowed any construction of condos on the lot #852 and #849 that are bordering the lot upon which MBC will build up its complex. The city government has cited the zoning regulations in refusing applications for construction of condos on those two lots. Thus, many people are pointing fingers at the unfair treatment of the city government.

As the problems are emerging, the city mayor Kang Hyun-suk said, "We will review the plan from the beginning again. We have to think about ways to cut down on the percentage of the lot to be used for non-broadcasting facilities, and matters concerning the zoning regulation."

But one MBC official alleged, "We need condos to conduct regular operations of a broadcasting station. That is why the condos are to be constructed within the complex. Those units to be sold to the public will be used for business purposes. Therefore, there will be no problem with the use of the lot."

He continued alleging, "Most of the recording and broadcasting equipment will be purchased by us [i.e. MBC]. In a nutshell we will pay for most of the construction cost and the purchase. Building a complex there will serve the city an opportunity to advance itself to a center of broadcasting software. How can they say we are receiving a favor?"

argus@donga.com