Korea Cable TV Blue Broadcasting received a conditional licence renewal after failing to meet the renewal score threshold, with its licence term shortened to 5 years.

The Broadcasting Media and Communications Commission on July 15 held its 23rd plenary meeting and approved a conditional renewal for Korea Cable TV Blue Broadcasting.

In an earlier first plenary meeting in April, the commission decided to determine whether to renew Blue Broadcasting's licence after holding a hearing, after its renewal review score fell short of the threshold of 400 points.

The commission held a hearing in June to confirm the operator's explanations and improvement plan on issues flagged during the review process. It then comprehensively reviewed the hearing results and decided on a conditional renewal.

The commission imposed 7 renewal conditions to raise the public interest nature of broadcasting and improve management transparency. Key conditions include stronger management of transactions with related parties, regular reporting of related-party fund transactions and implementation of a self-help plan to improve the financial structure. It said it can revoke the renewal if the conditions are not met.

During the renewal term, Blue Broadcasting must report to the commission within 1 month after the end of each quarter details of fund transactions with related parties, such as lending, recovery and provision of collateral, after review by an independent auditor and confirmation by the chair of its board.

It must also complete a self-help plan to improve its financial structure, including asset sales, by Dec. 31 next year. Funds secured through the plan must be used first to ensure stable operation of its broadcasting business and to secure financial soundness.

The renewal can also be revoked if improper external outflows recur, such as using principal and interest on loans to related parties and related companies recovered during the hearing process for purposes outside the broadcasting business, or lending them again to related parties.

Blue Broadcasting must comply with guidelines and standard contracts related to paid-broadcast channel contracts and content supply. It must establish criteria for allocating programme fees reflecting the views of content providers, and is also prohibited from actions such as unfairly overpaying fees to affiliated programme providers (PPs).

It must meet its plan for the proportion of first-run local channel programmes and its investment plan, and submit related performance results to the Central Radio Management Office by April 30 each year. It must also comply if the commission requests submission of materials or on-site inspections to check implementation of its business plan.

Kim Jong-cheol (김종철), chairman of the commission, said it will continuously check whether the renewal conditions are being met and take strict measures under relevant laws and regulations if they are not.