The government on Friday ordered Lotte Shopping, a TV shopping channel under retail giant Lotte, to stop operating programs for six hours during prime time for six months, as part of a disciplinary measure for submitting false documents.
The suspension is set to begin on Sept. 28, according to the Ministry of Science, ICT and Future Planning, adding that the TV channel will be banned from broadcasting programs between 8 a.m. and 11 a.m., and 8 p.m. and 11 p.m. daily.
The decision came after Lotte was found to have submitted documents that were required to renew its license last year without mentioning criminal cases involving its executives. The ministry, citing findings discovered by the state-run audit agency in February this year, said the cases and the names of executives involved were intentionally omitted from the documents, marring the fairness in the license re-approval process. Lotte Shopping, the nation’s third-largest shopping channel, renewed its licenses for another three years in April 2015.
Under the law, the ministry can impose administrative measures on broadcast stations if the government’s approval on launching or continuing operations was obtained through illegal means.
In response, Lotte Shopping expressed regret over the ministry decision, saying the suspension will cause serious damage to its partners, subcontractors and the company itself.
The peak hours generate about half of Lotte Shopping’s revenue, the company said, adding that 65 percent of products presented and sold during the time were manufactured by small and medium-sized companies.
If the suspension order takes effect, Lotte is expected to suffer a nearly 50 percent drop in its revenue this year from 1.28 trillion won last year.
The company also plans to hold an emergency meeting to minimize the damage expected from the government’s measures and will review filing an administrative litigation against the decision.
By Cho Chung-un (christory@heraldcorp.com)