Media group, tax service head continue verbal spar

Posted on : 2007-02-26 14:15 KST Modified on : 2019-10-19 20:29 KST
Newspaper says audit is political; tax head says same about media investigation of his son
 commisioner of the National Tax Service
commisioner of the National Tax Service

Remarks by the commissioner of the National Tax Service (NTS) against a media outlet have ignited controversy. During an interview published in the March edition of the Monthly JoongAng magazine, NTS dommissioner Jeon Goon-pyo said a media outlet which was currently being audited by the NTS was lashing back at him through "retaliatory coverage." Though Jeon did not reveal the name of the media organization, observers said he was referring to the Chosun Ilbo, which has been under recent investigation related to inheritance and gift tax practices.

Jeon did not go on to specify how the newspaper company was retaliating against his organization’s audits, and the Chosun Ilbo denied allegations that it was the company in question.

During the National Assembly confirmation hearing in July last year, Jeon said the NTS would investigate the nation’s media outlets at the same level as it would regular for-profit companies. He added that, just as the NTS did during its tax audits in 2002, "we will not investigate Korea’s 23 media companies simultaneously, or in a way that could cause misunderstanding." On October 19, the NTS announced the start of tax audits on the Chosun Ilbo, the Maeil Business Newspaper, and the Korean Broadcasting System (KBS), saying the audits would last until January 23, 2007. This survey period was extended on January 19 until late February.

But unlike the Maeil newspaper and KBS, the Chosun Ilbo strongly decried the tax audits from the start, claiming that they were aimed at suppressing the media. In an October 21 editorial, the Chosun said, "the Roh [Moo-hyun] administration has ceaselessly been exercising power and legal, administrative, and verbal abuse toward the Chosun Ilbo for the three years and eight months since its inauguration."

When the NTS announced on January 19 that it would extend the auditing period for the three companies, it specified that its probe into the taxes of the late Bang Il-young, former chairman of the Chosun Ilbo, would have a special extension until April 19. While he was still alive, Bang donated most of his property to his son, Bang Sang-hoon, current president of the Chosun Ilbo, and his grandson, Bang Jun-oh. The NTS reportedly has been investigating possible tax evasion during the inheritance proceedings.

A January 20 Chosun article criticized the NTS for its extension of tax audits in 2001, a move which was accused at the time of being politicised. In response, Jeon said in the Monthly JoongAng interview that media companies should accept tax audits as a natural course of events.

During a February 23 interview with The Hankyoreh, Jeon said, "I heard that the Chosun Ilbo is secretly investigating three or four items" relating to the NTS and himself, especially Jeon’s second son. However, Jeon did not provide any details.

Observers say Jeon was referring to a scandal surrounding his second son, alleged to have received special treatment during his mandatory state service - rather than serving in the military, he was given permission to work in a defense-related industry instead. The allegations were reported in the Ilyo Sisa weekly last summer. The Chosun Ilbo reportedly demanded the weekly provide it with more specific materials in connection with its report. Regarding this, a reporter at the weekly said through a telephone interview with The Hankyoreh that, as a reporter, he was not at liberty to discuss the details surrounding the story. In a February 23 telephone interview with The Hankyoreh, a high-ranking official of the Chosun Ilbo denied that the paper had asked for materials used in the weekly’s report on Jeon’s son.

Kim Suh-Jung, a professor of Media Law at Sungkonghoe University, said, "As the related persons made contradictory statements, it is important to disclose the facts. If Jeon was simply saying what he felt, he should apologize about the carelessness of such remarks. If Jeon is right, the Chosun Ilbo should apologize."

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