The Korea Communications Commission said Monday that it would deregulate rules governing terrestrial broadcast advertising in line with efforts to help the saturated network advertising market and boost ultrahigh-definition content production.
South Korea currently regulates the amount of time and the type of commercials broadcasters can show between TV programs and station breaks as a means to control their influence on the public.
However, the KCC said it would revise this to regulate only the total amount of commercial time on network TVs, while allowing broadcasters to play any type of commercial they and their advertisers see strategically fit, beginning this year.
KCC chairman Choi Sung-joon said the revision was in line with global standards, stressing it was inevitable as it needs to reinvigorate the TV ad market that could also potentially lead to a UHD content boom.
Since more than 80 percent of visual content comes from terrestrial broadcasters, the ads are needed to boost UHD content, he added.
“A slowdown in the (TV) advertising market would deteriorate the content ecosystem and weaken the Korean Wave,” Choi told the press on Monday.
“(The regulatory revision) follows the global trend, and we need to rejuvenate network advertising.”
His remarks came as some, including the telecom industry, criticized the KCC for increasingly siding with the broadcasting networks as the communication regulator has complied with most of their demands.
The KCC will also move to allow networks to launch multiple channels within a single allocated spectrum beginning next year. This would also help boost TV ad revenue for broadcasters, experts said.
The regulator said it would renegotiate with the Ministry of Science, ICT and Future Planning on allocating the 700 MHz band for UHD broadcasting and telecommunications.
Recently, the KCC said it would reconsider the allocation plan from scratch, overturning its previous view that 40 megahertz of spectrum in the 700 MHz band should be given to mobile carriers.
The ICT Ministry, in response, expressed concerns over the KCC backtracking on its decision, saying it would confuse the public. Nevertheless, the ministry said it would continue to discuss the matter with the KCC.
The communication regulator said it would finalize its decision on the telecom subsidy ceiling, which would range between 250,000 won and 350,000 won, by the end of next month. It will also implement rules forcing mobile carriers and phone manufacturers to separately disclose the amount of subsidies they provided to consumers when subscribing and purchasing products and services.
By Park Hyong-ki (
hkp@heraldcorp.com)
