MBC's deficit hit 53.6 billion won at the first half of this year

MBC's deficit hit 53.6 billion won at the first half of this year. October. 19, 2018 07:21. imi@donga.com.
The scope of MBC’s deficit exceeded 50 billion won in just the first half of this year and it has been pointed out that it will exceed 100 billion won at the end of this year.

Rep. Chung Yong-gi of the Liberty Korea Party, who is a member of the Science, ICT, Broadcasting, and Communications Committee, revealed at the parliamentary inspection Thursday that MBC acquired 2.7 billion won of business profits at the first half of last year but its deficit at the first half of this year hit 53.6 billion won. “If this situation continues, MBC will record a deficit of more than 100 billion won at the end of this year,” pointed out Rep. Chung.

“I received business report of MBC last month. Its advertisement sales decreased by 19 billion won while its business cost increased by 30 billion won, leading to some 50 billion won of loss in the first half of the year alone,” said Kim Sang-kyun, chairman of the Foundation for Broadcast Culture, at the parliamentary inspection on the same day. “Under a situation where the general service channel is making rapid progress and global business encroaching the domestic market, it is shocking that MBC is suffering a vicious cycle for being left behind. It is important to vitalize the public management.”

It has also been identified that Foundation for Broadcast Culture filed for an agenda to dismiss Choi Seung-ho, president of MBC, due to deteriorating business management. “Directors submitted an agenda to dismiss Choi in July but it was rejected after discussion,” said Kim. “It has only been less than a year since Choi was inaugurated. The previous Board of Directors appointed him publicly and we need to take a look at how he responds to various crises.”

The opposition parties pointed out MBC firing 14 employees last year. “Two thirds of those dismissed were related to corruption and illegality. There were four people who were engaged in illegality and the remaining 10 were engaged in personal corruption,” explained Kim.