▲ Kim Jong-cheol, Chairperson of the Korea Communications Commission
- "Many broadcasting regulations maintained based on outdated environments"
- "Need to find a new balance point suitable for the changed environment"
- Regulatory reform amendment under legislative notice; aiming for promulgation in September"
Kim Jong-cheol, Chairperson of the Korea Communications Commission, stated that "a balance point of regulation suitable for the changed market environment is necessary," in response to the rapid shift in media consumption patterns centered on Over-the-Top (OTT) services.
Chairperson Kim made these remarks in a contributed article for the Dong-A Ilbo today (June 25), titled "Media Transformation, Finding a New Balance" (page A28), noting that the landscape of the media industry is changing rapidly.
Over the past decade, the online advertising market has grown nearly threefold, from approximately 3.4 trillion won to 10.1 trillion won, while broadcasting advertising revenue has plummeted by more than half, from 1.9 trillion won to the 800 billion won range.
"The decline in advertising revenue is not merely a management issue for broadcasters," Kim diagnosed. "It leads to a reduction in the capacity to invest in content production, which ultimately results in weakened content competitiveness and a reduction in viewer choice."
In particular, Chairperson Kim emphasized the need for deregulation, pointing out that current regulations on broadcasters fail to keep pace with the times, leading to criticisms of "asymmetric" and "discriminatory" regulation.
The problem, he argued, is that many broadcasting regulations are still maintained based on past environments, even as broadcasters and OTT platforms compete for the same viewers and advertising market.
To address this, Kim stated that the commission is pushing for the rationalization of advertising regulations, including: ▲ expanding the daily total advertising volume and mid-program advertisements, and ▲ expanding the allowance for virtual advertisements while easing restrictions on the size of indirect and subtitle advertisements.
Chairperson Kim assessed these measures as "the first step toward restoring the balance of the system and expanding the foundation for content investment in line with the changed competitive environment."
He added, "By expanding the autonomy and creativity of broadcasters, we expect a virtuous cycle that leads to more investment and better content."
"What is needed now is deliberation to find a new balance point that fits the changed environment," Kim reiterated.
Previously, the Korea Communications Commission processed an amendment to the Enforcement Decree of the Broadcasting Act related to the easing of advertising regulations at its 17th plenary meeting on the 12th, and aims to promulgate it in September following legislative notice and consultations with relevant ministries.
(Photo: Provided by the Korea Communications Commission, Yonhap News)
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