By Bae Keun-min
Staff Reporter

Six daily newspapers have asked the government to provide 165.1 billion won to establish nationwide joint distribution centers.

Rep. Park Hyung-joon of the main opposition Grand National Party yesterday said the dailies submitted a proposal to build the centers to the Ministry of Culture and Tourism.

The six newspapers are Hankyoreh, Munhwa Ilbo, Kukmin Ilbo, Kyunghyang Shinmun, Seoul Shinmun and Segye Times. However, Munhwa Ilbo announced yesterday on its front page that it has never asked for the subsidy, adding it has only submitted a suggestion.

On May 24, a day after they handed in the draft, executives of the papers visited Culture-Tourism Minister Chung Dong-chea to discuss the issue, a ministry official confirmed yesterday.

The six newspapers have looked to develop a joint distribution system since 2003. In the proposal, the companies ask for 5 billion won in subsidy for 2005, 64.4 billion won in 2006, 45.7 billion won in 2007 and 50 billion won in 2008 to set up the centers. The centers would be reviewed by the Board of Audit and Inspection and the ministry.

The newspapers suggested the central and local governments would be able to take advantage of the proposed nationwide network for other purposes in the public interest such as a postal service.

``It is possible that the purpose of the distribution centers can be changed in accordance with relations between the government and some press,’’ Rep. Park said. ``It is astonishing that some newspapers have made such a proposal by themselves.’’

Rep. Woo Sang-ho at the ruling Uri Party said the 160 billion won subsidy for four years seemed reasonable to him. He also estimated that over 250 billion won would be needed to set up a state-run newspaper circulation body. The government originally planned the body but scrapped it during reviewing sessions at the National assembly.

The distribution center plan is included in the new law on newspaper for freedom and function, which was passed at the National Assembly on Jan. 1. The law was designed to create a fair environment for market competition through anti-monopoly regulations.

``There is no legal problem for the government to provide subsidy to newspapers so that they can build and run joint distribution centers,’’ a ministry official said, adding the new law states that ``costs to run newspaper distribution centers can be supported by state subvention.’’

However, the new law raised suspicions that the government may be using it to restrain the press, particularly the three major dailies, Chosun Ilbo, Dong-a Ilbo and JoongAng Ilbo.

According to the law, the market share of a single newspaper must not exceed 30 percent. The law also prohibits the top three newspapers from taking up more than 60 percent of the market.

kenbae@koreatimes.co.kr