Controversy Surrounds Media Acquisition and Defense Procurement Issues

by Lee Dong Geon Posted : October 25, 2026, 19:52Updated : October 25, 2026, 19:52

MBC's investigative program 'Straight' focuses on the controversy surrounding media privatization following corporate acquisitions and the issues in the defense procurement process.


On October 25, 'Straight' will air two segments titled 'After They Acquired the Media...' and 'Is Defense Procurement a Lottery?'


'After They Acquired the Media...' explores the motivations behind corporate acquisitions of media outlets and the impact on management and reporting.


On October 20, the Daou Technology Group consortium was selected as the preferred bidder for the acquisition of JoongAng Ilbo. Interest surged as IT solutions company Daou Technology entered the bidding, followed by late participation from CJ and Shinsegae.


'Straight' examines why large corporations are investing in newspapers burdened with massive debts.


The program also discusses the case of G1, a private broadcaster with coverage across Gangwon Province. Since SG Construction, a small construction firm, acquired G1 in 2017, family members of the major shareholder, including their son, son-in-law, and even a teenage grandson, have appeared in the main news. The production team has uncovered evidence suggesting that employees of the broadcaster were mobilized for the interests of the major shareholder's business.


Additionally, the program tracks major media outlets acquired by private companies over the past decade and examines whether there are institutional safeguards to prevent the privatization of media by owners.


The second segment, 'Is Defense Procurement a Lottery?', investigates the flaws in the defense procurement process and the realities of supplier selection.


In 2020, the procurement of general defense supplies, excluding weapons, was transferred from the Defense Acquisition Program Administration to the Public Procurement Service, with related businesses being selected through the online bidding system, Nara Market.


However, an analysis of defense supply bids conducted through Nara Market over the past five years revealed instances where companies unrelated to defense supplies secured contracts.


For example, a buoyancy control device ordered by the Marine Corps was awarded to a vocational training institute, while an automatic oxygen resuscitator for the Army was won by a banner production company. There was also a case where a construction machinery company won a bid for dental equipment.


Quality issues with supplied defense materials have also come under scrutiny. Reports of defects have surfaced regarding life jackets, canteens, and container bags, which are directly related to the safety of military personnel.


Some companies that supplied defective products or failed to fulfill contracts have faced bidding sanctions but still managed to secure defense supply contracts again.


The production team will investigate why defense procurement is referred to as a 'lottery' among certain companies and highlight the issues within the procurement system that fail to prevent repeated contracts with unqualified suppliers.


'Straight' will air today at 8:30 PM.





* This article has been translated by AI.