hankyoreh

The Fair Trade Commission (FTC) has commenced on an on-site inquiry at four newspapers, the Chosun Ilbo, JoongAng Ilbo, DongA Ilbo, and Herald Gyeongje. It is looking into whether there have been unfair trade practices between those papers and their branch offices, but what is of more interest to us is whether the Chosun, JoongAng, and DongA, which share an oligopolistic hold on the newspaper market, have violated the "newspaper directives." Media and civic groups have repeatedly called for an investigation of newspapers' main office operations, but perhaps because of the great influence the press enjoys, that hasn't happened. You almost feel like the FTC is making up for lost time, but at least it is finally looking into overall company operations.

The newspapers themselves are trying to make the inquiry look like it lacks legitimacy, alleging it is a target investigation of newspapers that are critical of the government. We think that isn't even worth arguing with. The market is terribly corrupt. It's lawless. The newspaper directives clearly prohibit the giving of free copies and prizes exceeding 20 percent of yearly subscription rates, and yet these newspapers are increasing their subscribers through free papers and gifts. Not satisfied with just giving away bicycles, now even cameras are being given away. According to the Citizens Coalition for a Democratic Media, in November the "violation rate" of the newspaper directives by major newspapers was 70 percent. It is the Chosun, JoongAng, and DongA that lead the pack when it comes to distorting the market. They need to be the subject of an inquiry if order is going to be restored to the market.

The big newspapers must not try to build a wall around themselves and claim they do not have to submit to legitimate inquiries. After all, is it not the media that should be watching to see whether there is behavior that hinders fair competition? On the one hand they dictate that mobile communications companies must not be giving away an excessive amount of gifts, then they say the are not going to submit to an inquiry into the same activity on their part. They are ignoring the "logs in their own eyes." The right way to go about the newspaper business is to submit to the inquiry fair and square then change one's ways if faults are discovered. The FTC has not reason to shrink from its responsibility. The only way to be judged properly will be to restore order to the market through a strict inquiry.

The Hankyoreh, 2 December 2005.


[Translations by Seoul Selection]