Radio Korea to Replace KBLA’s Business Format

Fred Sands, the Santa Monica real estate broker who bought KBLA-AM last year and struggled to introduce an all-business news format, has thrown in the towel and signed a tentative agreement to lease the station to Korean-language programmers.

Previously, Sands had let go more than half of his local staff, but insisted only a few weeks ago that he intended to stick with the all-business format by relying on Colorado Springs-based Business Radio Network.

Radio Korea USA, which currently airs on KAZN-AM in Pasadena and KWIZ-FM in Santa Ana, is headed by J. Janghee Lee. Its programming--which will begin airing on KBLA as early as Saturday--is a mixture of news, entertainment and talk targeted at the estimated 250,000 or more Korean speakers in Los Angeles.

Sands said his decision to drop the business network and most of KBLA’s remaining staff and talent--including Chuck Ashman’s “California Drive” program--was made for financial reasons.

“This will bring instant cash flow to me and my partner,” he said. “In the first year it will be in the seven figures. In these economic times, that’s nothing to sneeze at.”

Sands and Paul Amir, a Los Angeles real estate developer, bought KDAY-AM last year for $7.2 million. They dropped the station’s all-rap format to introduce all business news, investing about $2 million in new equipment and a 30-member staff.

But the new format never registered above a 1% rating in its more than six months on the air. Employees said Amir had declined to pour any more money into the station; Sands said the decision to drop the format was mutual.

Sands, who also owns hard-rock station KNAC-FM, said that only four or five current employees will remain at KBLA when Radio Korea takes over.

KAZN President Edward Kim said his station will look for Korean programming to replace Radio Korea. Andy Mars, general manager of KWIZ, said Liberman Broadcasting, owner of the station, had no comment. Liberman is selling KWIZ to broadcaster John Douglas for $8.75 million.