[Distribution Hot People] MCN as a Curveball... "A TV Playground for Creators"

Interview with Kim Myungseop, Head of KTH Commerce Division
T-commerce Channel 'K Shopping' New Challenge
Main Target in 50s... Missing 2030 Customers
Diverse Sub-Channels Like YouTube
Lowering Barriers for Young Designers and SMEs

Kim Myung-seop, head of the Commerce Division at KTH, demonstrated K Shopping's new TV multi-channel network (MCN) system on the 25th.

[Asia Economy Reporter Minyoung Cha] As the T-commerce (data home shopping) industry, which facilitates interactive communication, has grown into a 5 trillion won market, 'K Shopping' has announced its entry into the 'TV Multi-Channel Network (MCN)' business. They plan to launch sub-channels such as food, fashion, and pets, featuring top celebrities in each field to target the younger generation familiar with the one-person creator culture.

On the 25th, Kim Myungseop, head of the commerce division at KTH, said in an interview with Asia Economy at the K Shopping Media Center in Mokdong, Seoul, "While the main channel K Shopping plays a central role, the new specialized shopping channels will focus on developing differentiated content capabilities." What Kim aims to achieve through the MCN format is the effect of 탈 (?) home shopping. The goal is to expand the main customer base of home shopping from the 50s-70s age group to the 20s-30s. Many new projects are also being prepared. Collaborating with Dongdaemun Design Plaza (DDP) and the fashion industry, they will create an 'At-Home Fashion Show' stage to support the rise of young emerging designers. Dedicated celebrity shops will be established for famous figures in various fields, such as stylist Yoon Seulgi for stars, Chef Oh Se-deuk from 'Please Take Care of My Refrigerator,' and Director Lee Woongjong of 'TV Animal Farm.' The ultimate goal is to enable various one-person creators to continuously stream their self-produced video-on-demand (VOD) content 24 hours a day.

Kim said, "Expanding into the MCN business inherently aligns with the founding purpose of T-commerce, which is primarily to expand sales channels for small and medium-sized enterprises." He added, "It also allows for win-win effects by offering prime time slots, which only a few companies could enjoy, and by reducing excessive sales commissions." Although the blueprint for this new business has been drawn since the launch of K Shopping in 2012, its actual implementation was a matter for technical experts. Kim explained, "This has been a concern since the early days of K Shopping in 2012, but technical capabilities such as TV and set-top box model issues within individual households and data processing were not sufficient." He continued, "From last year through the first half of this year, we have refined cloud solution technology to acquire the capability for 24-hour data transmission." Recruitment of experienced and new employees for the MCN new business has also taken place.

The COVID-19 pandemic also served as a catalyst for internal changes at K Shopping. Kim noted, "Given the price-competitive nature of the home shopping industry, the consumption downturn caused by COVID-19 is a negative factor." He pointed out, "Although home shopping is often considered a beneficiary industry of contactless consumption, this varies greatly depending on each company's product composition (MD), sourcing, and future response capabilities."

K Shopping TV MCN will first be introduced on Olleh TV and Skylife. After technical enhancements, it plans to be supplied to major TV platforms such as SK Btv, LG U+, LG HelloVision, and D'Live by March next year. Kim Myungseop said, "When we started T-commerce (K Shopping) in the past, our internal slogan was '1,000 shopping hosts are waiting for you.'" He confidently added, "What we have shown so far is only one-hundredth of the ideas in our minds, and we will present various ideas going forward."