Separate Budget Allocation for App Market Survey
Strengthening Domestic OTT Competitiveness and Supporting Overseas Expansion
Opening of Online Damage Support Center for 'Saewootwigim Gapjil' and Others

[Asia Economy Reporter Cha Min-young] The Korea Communications Commission has finalized its 2022 budget at 256.1 billion KRW, an increase of 8.9 billion KRW compared to the previous year (2021). New budgets have been allocated for an application (app) market operation survey and support for the overseas expansion of domestic online video service (OTT) providers. A counseling center will also be established to handle cases of online platform damage caused by malicious comments, known as the so-called 'Saewootwigim Gapjil' incident.

On the 3rd, the National Assembly approved the '2022 Budget and Fund Operation Plan' containing these details. The original government proposal was 252.7 billion KRW, but the final amount was confirmed at about 3.5 billion KRW more than the government proposal. The budget is allocated as follows: Broadcasting Policy Bureau 112.8 billion KRW, Broadcasting Infrastructure Bureau 77.4 billion KRW, and User Policy Bureau 28.8 billion KRW. The Broadcasting and Communications Development Fund was finalized at 205.4 billion KRW, an increase of 10.2 billion KRW from the previous year.

The National Assembly allocated 200 million KRW for the app market survey. The KCC plans to understand the operational status of app market operators, content consumption patterns, and user complaints, and utilize this information for policy purposes. Including this, a total of 2.085 billion KRW was allocated for broadcasting and communications market research and analysis.

The KCC will also conduct overseas OTT market research next year to support the overseas expansion of domestic OTT providers such as Wavve, Watcha, and TVING. A new budget of 350 million KRW was allocated for strengthening the competitiveness of the domestic OTT industry.

An online damage support center, a comprehensive support center for online damages, will also be operated. It will provide systematic counseling to remedy various damages such as defamation, financial harm, and malicious comments. In May this year, a restaurant owner who suffered from false reviews related to Saewootwigim delivery food orders passed away due to a cerebral hemorrhage, highlighting concerns that some false accusations and malicious comment damages are becoming excessive.

A budget of 5.03 billion KRW was also allocated to build viewer media centers in the Daegu and Gyeongnam regions next year. Once the Daegu and Gyeongnam centers open, the total will expand to 12 metropolitan local governments nationwide. Six additional media sharing buses will be operated, totaling eight, with a budget of 1.2 billion KRW to support media education for media-disadvantaged groups.

The budget for supporting the production of regionally focused and public interest programs by local and small broadcasters was increased by about 500 million KRW to 4.53 billion KRW. This targets 35 companies, including 16 regional MBC stations, 10 regional private broadcasters, and 9 small and radio broadcasters.

Support for the production of EBS elementary and secondary school learning programs in the era of non-face-to-face classes will also be promoted. A budget of 1.5 billion KRW was reflected during the National Assembly review stage for the production of EBS elementary and secondary learning programs.

KCC Chairman Han Sang-hyuk said, “Next year’s budget includes many newly initiated projects such as support for domestic OTT overseas expansion and operation of the online damage support center,” adding, “The National Assembly’s separate allocation of the app market survey budget is a sign of encouragement to enforce app market regulations precisely.”

He added, “As the first country in the world to legally stipulate the obligations of platform operators, there is a high possibility that Korea’s app market policy will become an international standard.”