KCC: "No Discussion on Broadcasting and Communications Development Fund Collection Plan for OTT Operators"

Concerns Persist in the OTT Industry

[Asia Economy Reporter Cha Min-young] On the 19th, the Korea Communications Commission (KCC) issued a press release stating, "The KCC has not made any plans to collect the Broadcasting and Communications Development Fund from online video service (OTT) providers."

According to a previous media report, the KCC had prepared a plan to collect the Broadcasting and Communications Development Fund from OTT providers. The Broadcasting and Communications Development Fund is a contribution collected by the KCC under the Broadcasting Act from terrestrial broadcasters and comprehensive programming providers to support broadcasting and communications development.

Kim Seong-wook, Director of the Media Diversity Policy Division at the KCC's Broadcasting Infrastructure Bureau, said, "Concerns about collecting the fund from OTT providers without establishing the legal basis for the levy are premature," adding, "While concerns may arise in the market, there has been no discussion about this within the KCC."

The KCC stated, "The three ministries, including the KCC, the Ministry of Science and ICT, and the Ministry of Culture, Sports and Tourism, have been working to revitalize the OTT market by finding areas where each ministry can perform well, in accordance with the 'Minimum Regulation and Promotion Priority Principle for OTT' outlined in the inter-ministerial joint plan 'Digital Media Ecosystem Development Plan' announced last June."

However, concerns about regulation have been rising in the market. Under the current Telecommunications Business Act, domestic OTT providers classified as value-added telecommunications service providers are still operating at a loss, but there is increasing criticism that instead of fostering them, they are being confined within regulatory boundaries.

An industry insider from the OTT sector said, "There are talks about changing the Broadcasting Act to the Audiovisual Media Service Act to regulate OTTs, and voices from the Ministry of Culture, Sports and Tourism demanding payment of the Film Development Fund, which raises many concerns," adding, "We hope people understand that domestic OTTs are still in the early growth stage companies that have not yet overcome losses."