SEOUL, Mar. 2 (Yonhap) — South Korea’s telecommunications regulator said Tuesday it will appeal a recent court decision to temporarily lift a suspension order against local cable TV channel MBN over accounting fraud.
Last month, the Seoul Administrative Court granted an injunction sought by MBN against the six-month suspension order from the Korea Communications Commission (KCC), citing possible “irreversible” damage against the company.
The KCC issued the suspension last October after it found that MBN manipulated its balance sheet in 2011 to conceal a portion of the capital raised under the borrowed names of its employees.
The channel was originally set to shut down its service in May for six months after a six-month grace period given by KCC to minimize damages ends.
The regulator said it would pursue the appeal as the move could damage trust in broadcast channels’ public interest and responsibility.
MBN has also filed a lawsuit against the suspension, arguing the penalty is too heavy and that it has already corrected its problematic practices.