By Han Eun-jung
Staff Reporter


For the first time in broadcasting history, a terrestrial television network had its application for the renewal of its license denied Tuesday, forcing the station to go off the air at the beginning of next year.

The Korean Broadcast Commission (KBC) refused to renew the license of Kyung-in Broadcasting Limited, which runs the channel iTV. If the commission’s decision stands, the television channel, whose offices are based in Kyonggi Province, will be forced to discontinue its operation as of Jan. 1.

The decision was reached during a license renewal hearing held by a special panel of the commission and in the presence of iTV officials in western Seoul yesterday.

Aside from the three major national networks - KBS, MBC and SBS - iTV is the only independent terrestrial broadcasting network to offer all-original programming.

The commission cited iTV’s unstable financial situation as the main reason for its decision to deny the renewal.

``Realistically there is no way that iTV can carry out the proposals it submitted prior to the license renewal hearing,’’ said Sung Yoo-bo, head of the panel.

In 2001, when local terrestrial broadcasters were last up for renewal evaluation, iTV was granted a new license on the condition that it would work to increase capital by 20 billion won. The network, however, failed to come through, reaching only 7 billion won.

The network has accumulated a debt of 87 billion won, 6.7 billion won more than its total assets.

DC Chemical Co., the broadcaster’s largest shareholder, retains 42.5 percent of total shares, which violates the article in local broadcasting laws that specifically limit a single shareholder’s dividend to 30 percent.

Since this is the first time for a license renewal application to be rejected, there is no specific policy as to what actions the network is required to take. However, iTV is expected to take legal action after examining the commission’s decision.

ejh09@koreatimes.co.kr