Korea Communications Commission, to alleviate asymmetric regulations between terrestrial and paid broadcasting

The Korea Communications Commission aims to revitalize the broadcasting market by completely resolving the asymmetric regulations between terrestrial and pay-TV and removing various advertisement regulations.

The key to this reorganization is the introduction of a negative method of accepting the principle and prohibiting exceptions, which regulates only prohibited advertisement types, instead of the positive method that allows only the types of advertisements listed in the existing broadcast advertisement field. Terrestrial waves, like long-term and cable channels, allow full intermediary advertisements, and review the broadcast advertisement combined sales system and media representative (broadcast advertisement sales agency system). The media industry is expected to have a ripple effect along with the backlash from the newspaper industry of’terrestrial customization’.

First of all, the types of broadcast advertisements that are subdivided into seven types according to the current legislation are simplified into’ads within the program’ and’ads outside the program’. A’ad free zone/sandbox’ will be introduced that temporarily exempts form regulations such as the type, time, and size of advertisements during certain times. Through this, the likelihood of seeing’new type’ advertisements in length and format that has not been seen until now has increased.

Intermediate advertisements were also allowed to be fully allowed regardless of business classification. Interim advertisements can be made within 1 minute per session, and can be performed once in a program longer than 45 minutes and twice in a program longer than 60 minutes. As a result, the main terrestrial news may also contain intermediate advertisements. Existing terrestrial’Trick Intermediate Advertising (PCM)’ will be applied as an intermediate advertisement in the future.

Ads for program titles are also allowed. In order to use the advertiser’s name as the title of the program, amendments to the broadcasting law related to the expansion of broadcasting advertisement types will be promoted, but the permitted genre and time will be limited to prevent damage to publicity and commercialization. The regulations on items for virtual and indirect advertisements will be relaxed, and the genre allowed for virtual advertisements will be expanded in accordance with indirect advertisements. Live-read advertisements on the radio (advertising where the host reads the ad text while on the air and mentions a specific product) are also allowed.

In the case of broadcasting, the ratio of entertainment programs of general broadcasting companies has been reduced from 50% or less to 60% or less, so that both terrestrial and general broadcasting can increase entertainment programming. The ratio of programming in the main broadcasting sector of professional programming PPs was also changed from 80% or more to 70% or more.

▲ Three terrestrial companies.
▲ Three terrestrial companies.
▲ Han Sang-hyuk, chairman of the Korea Communications Commission.  ⒸKorea Communications Commission
▲ Han Sang-hyuk, chairman of the Korea Communications Commission. ⒸKorea Communications Commission

Terrestrial advertisement combined sales system and media representative’review’

The Korea Communications Commission also announced on the day that “we will fully review the combined sales system, which is imposed only on terrestrial waves, weakens competitiveness and weakens its effectiveness as a support for regional and small and medium-sized broadcasting.” Amid a lawsuit for unconstitutionality was filed against the combined sales system last year, the Korea Communications Commission also seems to have started to move in earnest. The Korea Communications Commission △Introduced a sunset system that gradually excludes the target of combined sales support △Abolition of combined sales or a plan to impose a combined sales obligation for all-time PPs △Support small and medium-sized broadcasting companies with public funding such as the Bang-in Fund or advertising tax benefits It is a policy of thinking about ways to do it in various ways.

[ 관련기사 : 미디어오늘) 헌재 결정 앞둔 ‘결합판매’ 방송계 지각변동 예고 ]

The Korea Communications Commission also said, “We will review the overall system, such as a new sales system that responds to the global market, to check the performance in the meantime.” By reorganizing the role of (Korea Broadcasting Advertisement Promotion Corporation), we will reinforce public interest functions such as advertisement promotion, and re-establish the role and organization of the institution.”

Choi Yoon-jung, head of the Broadcasting Advertising Policy Division, said, “We are obligated to combine advertisements from small and medium-sized broadcasting companies to terrestrial operators, but terrestrial advertisement sales are falling sharply. Because only terrestrial broadcasters are obligated to do this, there is a phenomenon of avoidance of advertisements (advertisers). “The reason for maintaining asymmetric regulations has been lost as terrestrial sales declined. Whether to maintain or abolish consolidated sales or adjust the consolidated sales ratio in stages, everything is subject to review.”

Pointing out that if the combined sale is abolished, it is pointed out that there may be a backlash against local and small and medium-sized broadcasting companies. In the end, it is a question of how and how much will you support them.” He said, “Including both terrestrial media representatives and full-length media representatives, whether to maintain a media representative or to conduct direct advertising sales, they are basically all open.”

It also came up with a policy for Kobako. In the current situation where only broadcasting advertisement sales agency is available, it will change to enable cross-media advertisement sales to the Internet and mobile, and devise a plan for Kobaco to designate it as a government advertising agency for broadcasting media. Currently, the Korea Press Foundation is acting on behalf of all government advertisements, so conflicts between ministries are expected.

▲ Korea Communications Commission.
▲ Korea Communications Commission.

Standing Committee member Kim Hyo-jae from the Chosun Ilbo “Terrestrial interim advertisement, hitting the newspaper industry”

The Korea Communications Commission’s secretariat reported on the policy plan to revitalize the broadcasting market at the plenary meeting on the 13th. Most projects are scheduled to be implemented within 2021. Broadcasting Infrastructure Director Bae Joong-seop said, “Global media is trying to swallow the Korean market. I have a sense of crisis that broadcasting may disappear,” he stressed the justification of the policy.

Ban Sang-kwon, the head of the Broadcasting Infrastructure Supervisory Commission of the Korea Communications Commission, explained that “the Broadcast Advertising Balance Development Committee was formed from January of last year, and the policy came after collecting opinions from civic groups.” He emphasized that I will be punished for any violations of the law after death.” “There was a need for reform of the regulatory system that did not fit the reality. We will make sure that the policy can be materialized with a sense of speed.”

On the other hand, Kim Hyo-jae, a standing member from the Chosun Ilbo, said, “The issue of allowing intermediary advertisements requires sufficient hearing from stakeholders. There is also a study that 20 billion won annually in newspaper advertisements goes to terrestrial broadcasting due to the introduction of terrestrial interim advertisements. It is clear that newspaper bowls are taken away.” “There is also the importance of a country’s print media. It is not that the Korea Communications Commission only needs to save our broadcasts, but it must cooperate with the Ministry of Culture and Sports so that stakeholders do not die.”

Accordingly, Chairman Han Sang-hyuk said, “It is not correct that the discussion results in an interim advertisement issue. (This policy) is to finalize the lack of asymmetric regulation resolution.” Standing Committee member Kim Chang-ryong also said, “This policy is to set the principle of same service and same regulation.” An official from the Korea Broadcasting Association said, “I judge it as an unfounded claim” to the claim of 20 billion won in newspaper advertisements by standing member Kim Hyo-jae.

Ahn Hyung-hwan, a member of KBS, said, “We cannot demand public duty or high-quality content without financial support. (This policy) takes into account the resolution of asymmetric regulations and the market situation,” he said, but added, “There are areas that will lead to concerns about the loss of viewing rights and weakening of terrestrial publicity.” The Citizens’ Alliance for Democratic Press is scheduled to hold an emergency meeting on the 14th to criticize the policy.

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