By Kim Rahn
Staff Reporter

A mud cosmetics and soap making company has filed a suit against state-owned KBS TV, seeking 20 billion won in damages. Actress Kim Young-ae, vice chairwoman of the cosmetics producing firm Chamtowon, said Thursday that the company recently filed the compensation suit.

The suit came after a local court ruled earlier this month that a report made by the KBS program ''Consumer Report'' about the products' safety, was based on ''false facts.''

Last October, the program reported that Chamtowon's mud products contained heavy metals, the amount of which were over a permissible level. After the broadcast, the company had to suspend operations at its factory in Jeongeup in North Jeolla Province and dismiss 100 workers. Currently, the firm has become virtually bankrupt.

''The false report has killed not only the mud cosmetics market but also other mud-related industries, forcing companies to close,'' Kim said in a media briefing.

''The Korea Food and Drug Administration confirmed the safety of the mud products, and the Press Arbitration Commission and the court pointed out that there were problems with the report, but KBS still insists on its innocence. We'll make KBS take responsibility for its arrogant attitude, as the broadcaster has ignored its duty as a member of the press,'' she said.

Kim said that the company set the compensation money at 20 billion won, which is the company's alleged loss during the eight months after the broadcasting, and may demand more if the firm sees more losses.

On May 8, the court ruled in favor of Chamtowon, concluding that the magnetic substance found in the mud products was oxidized steel originally present in the mud, not foreign materials put in the products during the manufacturing process.

It also ordered KBS to release a correction regarding the wrong report, but KBS said it is considering appealing to the high court.

rahnita@koreatimes.co.kr