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If the amendment to the Regular Publications Law (i.e. the new Newspaper Bill) submitted by the Uri Party on Oct. 20 were to become a reality, journalism scholars and economists point out that "newspaper control tools" even more effective than the newspaper censorship efforts of the military government of the 5th Republic could emerge.
The Fair Trade Commission, the "Prosecutor of the Financial World" that has exercised much power against civilian companies, could become the representative tool of control pointing a regulatory blade against papers with large readerships like the Chosun Ilbo and Dong-A Ilbo. Newspapers like the Chosun and Dong-A, which are likely to be termed "monopolistic" under the new law, will face regular surveillance of their sales, pricing and advertising receipts according to standards much tougher than those used for minor newspapers. According to the penalty application standards set by the enforcement ordinance of the Fair Trade Law, firms labeled "monopolistic" could face fines of up to 3 percent of revenues made while they were in violation. Considering how the Chosun Ilbo made W410 billion in newspaper-related sales last year, it could face up to W12.3 billion in fines. If the Fair Trade Commission were to rule that the paper was in violation for a period of two or three years, the fines could skyrocket to W20~30 billion. There are many who point out that the Newspaper Bill's use of a 30 percent/60 percent standard -- much tougher than the 50 percent/75 percent standard found in the Fair Trade Law -- to judge newspapers alone was aimed at particular papers such as the Chosun Ilbo and Dong-A Ilbo.
Seoul National University economics professor Lee Sang-seung said, "Just like how big corporations like Hyundai Motor and SK Telecom are watching their business activities shrink because they are watched as monopolistic businesses, newspaper companies could experience the same losses." Lee In-kwon, director of the Center for Law and Economics of the Korea Economic Research Institute (KERI), said the Fair Trade Law itself could be arbitrary interpreted, and if political influence couldn't be removed, the Fair Trade Commission could be ill used as a tool to tame the media. The commission does have a record of assisting in the government's attacks on newspapers, having conducted investigations into improper internal dealings of media companies when then-President Kim Dae-jung launched tax probes against media companies in 2001.
The window that will assume the role of "newspaper control body" through appeasing minor papers and Internet media including the Hankyoreh, Seoul Daily, OhMyNews and Seoprise is the minister of Culture and Tourism. Article 28 of the Newspaper Bill calls for establishment of a newspaper development fund, while Article 29 calls for the fund money to be spent on promoting opinion diversity, newspapers and Internet media, promoting the dissemination of periodicals and Internet media, improving the distribution system, cultivating human resources and media-related education and research, and informationalization. Papers designated "monopolistic," however, like the Chosun Ilbo and Dong-A Ilbo will be cut off from the fund.
Articles 32, 33 and 34 call for the establishment of a Korean Media Promotion Center that would come up with plans and study and evaluate policies designed to guarantee diversity of opinion in Korea. Of the nine directors who would sit on this body to replace the Korea Press Foundation, however, the law stipulates that two must be appointed by the Minister of Culture and Tourism at the recommendation of media-related civic groups. There are many who point out it is very likely the influence of particular groups such as the People's Coalition for Media Reform and Citizens' Coalition for Democratic Media would be reflected.
Hanguk University of Foreign Studies journalism professor Kim U-ryong said the law ignores Korea's relatively congested newspaper market, and called the government's engagement in supporting all newspapers in the name of diversity of opinion an anachronistic concept. He also warned that more than anything, a newspaper control body that imposed discriminatory regulations and offered discriminatory support based on how friendly particular companies were with the government would result in the obliteration of the freedom of the press in Korea. The Fair Trade Commission and Ministry of Culture and Tourism said they were not consulted when the Uri Party prepared the proposal of the Newspaper Bill, and the legislation is expected to have a rough time passing through the committee in the National Assembly.
(Jin Sung-ho, shjin@chosun.com )
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