MBN Wins First Trial in Lawsuit Challenging Order to Restructure Outside Board Members

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] Maeil Broadcasting Network (MBN) won the first trial in an administrative lawsuit filed against the Korea Communications Commission's (KCC) order to reorganize its outside directors last year.

The Seoul Administrative Court, Administrative Division 13 (Chief Judge Jang Nak-won), ruled on the 18th that MBN's lawsuit seeking cancellation of the corrective order issued by the KCC was fully in favor of the plaintiff.

In October last year, the KCC issued a corrective order requiring MBN to reorganize its outside directors by the end of April this year, stating that "MBN did not implement the reorganization of outside directors as planned among the measures to secure professionalism, independence, and transparency in management submitted in 2018."

In response, MBN filed a lawsuit on January 10th seeking cancellation of the corrective order.

Meanwhile, MBN also filed an administrative lawsuit seeking cancellation of the six-month suspension order it received from the KCC in October last year. The first hearing is scheduled for the 23rd of next month. MBN has obtained a suspension of execution, temporarily halting the effect of the suspension order.

The KCC imposed the six-month suspension order, alleging that when MBN was selected as a general programming channel operator (PP), part of the paid-in capital of 395 billion KRW was paid with company funds using nominee shareholders among executives and employees, and that false documents were submitted at the time of initial approval.

This content was produced with the assistance of AI translation services.