Posted December. 21, 2004 23:09,
The Korean Broadcasting Commission has decided to reject iTVs licence renewal. iTVs broadcasting authorization finishes this year. Therefore, iTV cannot air starting from next year.
KBCs rejection is the first since the introduction of renewal system in 2000 and since the 1980 press abolition and amalgamation ordinance was in effect, the first case of a broadcasting company closure is expected.
KBC said that iTV has insufficient finances to carry on its work and that it did not provide broadcasting profits to society. Therefore, iTV is not apt for normal business and broadcasting.
KBC said that it asked for a capital increase in return of the renewal. However, no response came from a major stockholder, TS Corporation, and there was no improvement in their financial structure. On top of this, there was no possibility of promoting for outside funding. iTV, at the end of 2003, had debt of 87.8 billion won, which is 6.7 billion won more than its assets of 81.1 billion won.
KBC added for their reason of refusal that iTV only gave a billion won out of what they promised to give back to society.
ITV could not promote for a capital increase due to labour union strike and closure of business during the investigation for authorization renewal.
On the other hand, iTVs FM radio is expected to run at least until its due date at the end of 2005.