hankyoreh

South Korea's corporate watchdog said Monday it has decided to fine the country's three largest newspapers and their distributors a combined 552 million won (US$583,000) for their unfair business practices.

The Chosun Ilbo, Joongang Ilbo and Donga Ilbo were found to have provided excessive amounts of free newspapers to their regional distributors in 2002, providing a "source for excessive offerings which could be used to unfairly lure subscribers," according to the Fair Trade Commission (FTC).

According to the country's fair trade law, newspapers are banned from providing their distributors or subscribers with free papers worth more than 20 percent of what is originally provided.

The newspaper with the highest circulation nationwide, the Chosun Ilbo, was found to have provided 39 percent of the extra papers in 621 branches. The Joongang Ilbo and the Donga Ilbo respectively gave 34.2 percent and 31.2 percent of the free papers.

The FTC also fined distributors of the three companies for using free newspapers and gift coupons to attract new subscribers, the watchdog said.

In the past, major South Korean newspapers often tried to gain new subscribers by giving away large gifts such as bicycles.
Seoul, March 12 (Yonhap News)