WAN condemns tax probe of newspapers

(WAN/IFEX) – The following is a 10 July 2001 WAN letter to South Korean President Kim Dae-jung: Paris, 10 July 2001 Your Excellency, We are writing on behalf of the World Association of Newspapers and World Editors Forum, which represent more than 17,000 newspapers in 93 countries, to express our serious concern over the unprecedented […]

(WAN/IFEX) – The following is a 10 July 2001 WAN letter to South Korean President Kim Dae-jung:

Paris, 10 July 2001

Your Excellency,

We are writing on behalf of the World Association of Newspapers and World Editors Forum, which represent more than 17,000 newspapers in 93 countries, to express our serious concern over the unprecedented tax investigation into the finances of South Korean newspapers and the record fines and penalties that were subsequently imposed.

Your government, through your embassy in Paris, has kept us informed about developments. We are grateful for this information but it has not eased our concerns about the investigation or its results. Despite your government’s denials, we remain concerned about the apparent political motivation of the investigation and its negative impact on press freedom in your country.

According to reports, South Korean authorities have levied record fines and penalties against media firms following the investigation, which was the largest single audit of any business sector, with an unprecedented number of National Tax Service investigators taking part.

The reports said the NTS levied fines of almost 400 million US dollars against 23 media companies and that it has asked prosecutors to investigate six major newspapers with an eye to lodging criminal charges. Furthermore, the Korea Fair Trade Commission also conducted investigations into media companies, focusing on independent newspapers, and charged 24.1 million won (US$18.6 million) on 16 media companies.

Although your government has denied the investigation was a political attempt to muzzle criticism, the actions of investigators and your government’s response to criticism are not reassuring. We understand that this was the first time the NTS has announced the amount of penalties and fines imposed ­ a possible violation of National Tax law. We also understand that the amount is the highest retroactive tax for a single sector. We also note that the methods of calculating tax are overly complicated and open to dispute.

Furthermore, your government has resorted to using questionable public opinion polls and pro-government “media experts” to show the “popularity” of its actions as justification for its investigation. These tactics appear to be an attempt to erode the public’s trust in the media and could also be viewed as an attempt to blunt criticism of your government.

The massive investigation of media companies, and not other industries, also leads us to conclude that this is a tactic aimed at silencing government critics rather than correcting business practices in South Korea.

Although tax evasion cannot be justified, we are concerned that the investigation and the large fines imposed will damage the independent press’s ability to investigate and comment on the actions of government, a critical element in any democracy. The threat of fines, penalties and jail sentences will have a chilling impact on press criticism, particularly when coupled with your government’s confrontational approach to the independent press.

We respectfully ask you to ensure that no publisher or other newspaper official will be jailed in these cases. We respectfully urge you to instruct your government to adopt a less confrontational approach and work toward ending this controversy.

We will be closely watching the investigations in the hope that the accusations, investigations and outrageous penalties will not result in a diminishment of press freedom in South Korea.

We are looking forward to receiving your comments on this matter.

Sincerely,

Roger Parkinson
President
World Association of Newspapers

Gloria Brown Anderson
President
World Editors Forum

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