An article was released today about KBS rejecting 'City Conquest' and it got a little sensitive. In some point, I can't blame KBS in regarding to this as the government is now one of the factors.
The articles are kinda long so let me just summarized it for you.

About the recent controversy of 'City Conquest' being rejected by KBS wasn't really explained how and why.
And now they released a more thorough explanations.
Media Baek actually received a letter of intent from KBS and was given a grace period to change writers until Jan 2013.
▶ KBS said that the violence of drama is considered inappropriate.
▶ KBS drama department organized a consultation process and requested by the senior officials to replace the drama's writer, script, actors,and the big production cost.
▶ KBS is trying to be careful this time that their government is under new management.
▶ City Conquest is a story of revenge to the society, that's why KBS wanted for the storyline to be changed.
▶ The content and feasibility of the drama is inappropriate to their newly inaugurated administration.
▶ But according to Media Baek, the storyline of City Conquest is just fiction (So nothing to worry about, it will actually help to improve growth and development for Korea).
▶ Baek Media also said that because of Kim Hyun Joong, the amount earned domestic and foreign is surprisingly high.
▶ To the fans waiting, Baek Media promised to implement a desperate effort and become the forefront of cultural export for Kroean Dramas.
▶ KBS drama department should acknowledge the fans domestic and foreign as soon as possible (not sure of this)

So basically, City Conquest got rejected because of Korea's new government. KBS probably is now being too careful not to get sued by the government for airing such drama with violence and revenge.
Since government is now connected to this issue, I think we might have to wait a little more longer for City Conquest.

Here's another article about this issue from https://en.korea.com

                                               
KBS: “City Conguest is insufficiently competitive”

On January 31, KBS made an official announcement on reasons why they decided not to air the TV series City Conquest through their network. KBS said, “We are very sorry that the production company for the series insists that our decision is an arrogation. They even said that we are feeling constraint in the new government, which is completely not true.”

“We held four meetings to review the series and whenever the series receives suspension we asked the production crew to make up for the weak points in the series.”

“However, the recent proposal that they handed in for the latest meeting is insufficiently competitive and contains a lot of violence to air through public broadcasters. That’s why we decided not to air the series,”

“We clearly stated on the letter that if the script for the series is insufficiently competitive, it is not allowed to air. Even though we made the decision through our official system, the production company is insisting that we are feeling constraint in the new government. They also used an expression on defamation of character.”

KBS added, “We are determined to sternly deal with the insist that the production company made.”

Taeborum Kim
1/31/2013

Being an alien fan and admirer of Kim Hyun Joong, this actor/director/singer and dancer, Leader of the new generation of Kop and Rock Music, this man of Universal Love and Peace maker, I certify that this is the most talented and the most integrated actor and the best Star and performer of City Conquest TV series’ fictional social drama. His charisma and his great human value are indisputable and undeniable. The current world really needs a leader who guides him and shows him the property and the good and right things. Kim Hyun Joong is a futuristic genius who can help people to accede to much more sense of humanity values and dignity. Kim Hyun Joong is fundamentally good and positive. He embodies the image of the legendary hero with a big heart. He is the best actor and cannot be replaced by any other figure because he is at poll position everywhere and in all the footprint of his magnetic Aura of best figure of great actor of eager youth of love, peace and nobility! This great super actor, this Star is so honest and correct that he has become the international Leader because he is a super-creator and an innovator of above normal intelligence. City Conquest is his idea...his own great work! He is romantic and sentimental, and listening to others always... especially to those who suffer. He loves his neighbor and gives fully, without computing all human causes. He seeks always to please everyone and to respond to all that is demanded from him as a public figure without prevarication, without wearing a mask and without detours. There is a lot of dignity in all his actions. He is always humble in his success and perfect in his conception of the active life. He has that Super attractive physique of manly but never sharp sports is full of surprising vitality. His special particular beauty of delicate romanticism that touches hearts is that of a healthy being of great sensitivity that moves the crowds because it comes from his high value moral and humanitarian sense to the highest degree! His face has a special pleasant cachet because it represents the purity and honesty of youth in its bottom-up cool! Kim Hyun Joong has become as a human being the emblem of nobility and generosity of spirit. As a player, he was able to move around the world because when he plays with so much brio and pure disinterested feelings, his magnetic power gives new energy of great social utility. Why reject what can make more human society? Why break the momentum of this innovative futuristic lifestyle healthy? Kim Hyun Joong deserves that we congratulate and support him in his great work that gives hope to the construction of the civilization. I'm just a voice that rises among millions who support and approve Kim Hyun Joong. We are just a voice to rises up and we do believe that without Kim Hyun Joong radiant presence, City Conquest cannot be this pure jewel of the Korean Drama! Fighting!!!

Reply
ser
1/31/2013

What the hell are you saying? plz dont say nonsense! is just a drama -_-

Reply
1/31/2013

@Taeborum Kim:
Very well said dear. ^^

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Taeborum Kim
1/31/2013

Thank you. I have confidence because South Korea has always been the cradle of Art. All Korean people can be proud to belong to this beautiful peaceful country that protects all forms of Art and aesthetics. This is the strong message of a civilization open and forward-thinking that prone this wisdom of the balance between the strength and beauty! Kim Hyun Joong is a son of light that shines by his great virtue and his creative spirit. He is a fighter. He is also the South Korean Ambassador of Arts at the United Nations. He has a high value message to dispense. Defend the right is always paid. It is the doctrine of human dignity. 'City Conquest' drama is a safe bet that deserves that we are fighting all together for the message given in this series to the civilized world of today. Thank you for sharing our faith as the right always by win!

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Taeborum Kim
1/31/2013

Thank you. I have confidence because South Korea has always been the cradle of Art. All Korean people can be proud to belong to this beautiful peaceful country that protects all forms of Art and aesthetics. This is the strong message of a civilization open and forward-thinking that prone this wisdom of the balance between the strength and beauty! Kim Hyun Joong is a son of light that shines by his great virtue and his creative spirit. He is a fighter. He is also the South Korean Ambassador of Arts at the United Nations. He has a high value message to dispense. Defend the right is always paid. It is the doctrine of human dignity. 'City Conquest' drama is a safe bet that deserves that we are fighting all together for the message given in this series to the civilized world of today. Thank you for sharing our faith as the right always by win!^^

Reply
BabyG
1/31/2013

Isn't City Conquest drama is derived from a Japanese mangga series .. so ... "City Conquest is his (KHJ) idea .. his (KHJ) own great work". Well ... due recognition should be given to the right person i.e the mangga writer. Or maybe you interpreted your statement differently .. so please clarify ...

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Taeborum Kim
2/1/2013

I am sorry if I have goofed because being a foreign fan and not knowing exactly what it is all about, I simply followed the interpretation of KHJ’s Internet fans. Everybody there
asked all the fans to support KHJ and to give their opinion and to submit posts on City Conquest Blogs… So I thought it was my duty to do it without any bad intention.
I like mangas and ‘mawas’ very much and appreciate all writers from Asia as the best great artists.
I apologies for any incorrect word of my post and I acknowledge that I have not of me involved to participate in something that I don't fully know.
My intention was good and I'm peaceful. I simply wanted to extol the praises of KHJ I admire as best actor. Good luck.

Reply
Taeborum Kim
2/1/2013

I am sorry if I have goofed because being a foreign fan and not knowing exactly what it is all about, I simply followed the interpretation of KHJ’s Internet fans. Everybody there
asked all the fans to support KHJ and to give their opinion and to submit posts on City Conquest Blogs… So I thought it was my duty to do it without any bad intention.
I like mangas and ‘mawas’ very much and appreciate all writers from Asia as the best great artists.
I apologies for any incorrect word of my post and I acknowledge that I have not of me involved to participate in something that I don't fully know.
My intention was good and I'm peaceful. I simply wanted to extol the praises of KHJ I admire as best actor. Good luck.

Reply
7/5/2013

I don’t think city conquest is running that bad. It is just a bad phase. I am sure they can rebuild. I would say “start over”. Don’t just go down the hill. Thanks a lot for the update. I would like to hear some good news next time.

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7/5/2013

Yes, i do agree nothing is wrong with City Conquest. It is a very valuable and impressive drama. Hope that it will be another chance given to CC in the future. Thanks for the update.^^

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10/24/2013

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Taeborum Kim
10/29/2013

very day teaches man something new. We must be receptive and take advantage of all the teachings of wisdom as a gift from heaven and remain open to the fructifying thought of those who give their hearts and minds to educate people. Thank you for your advice that I take great care. Good day^^~

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10/29/2013

Very good and useful information.

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