Paid Broadcasting License and Home Shopping Approval Extended from 5 to 7 Years... Government Significantly Eases Outdated Broadcasting Regulations

Ordinance Amendments on the Enforcement Decree of the Broadcasting Act and the Internet Multimedia Broadcasting Business Act Approved at the Cabinet Meeting

[Asia Economy Reporter Oh Su-yeon] The government is significantly reforming outdated regulations in the broadcasting market by extending the approval validity period for paid broadcasting and home shopping channels from the existing 5 years to 7 years, and easing ownership and cross-ownership regulations.

The Ministry of Science and ICT announced on the 9th that the amendments to the 'Enforcement Decree of the Broadcasting Act' and the 'Enforcement Decree of the Internet Multimedia Broadcasting Business Act' have passed the Cabinet meeting. The amendments will take effect from the 16th.

This amendment to the enforcement decree is part of the Yoon Seok-yeol administration's national agenda to realize a 'global media powerhouse.' It aims to revitalize investment and expand autonomy by innovating the paid broadcasting market, which has been subject to strict regulations for over 20 years.

First, ownership and cross-ownership regulations for broadcasting businesses will be significantly reduced to expand autonomy in mergers and acquisitions (M&A) and promote investment.

The ownership scope of terrestrial broadcasting operators in television broadcasting channel usage businesses will be expanded from 3% to 5% of the total number of television broadcasting channel usage businesses. The cross-ownership restrictions on broadcasting channel usage businesses by comprehensive cable broadcasting operators (SO) and satellite broadcasting operators have been abolished. Additionally, the ownership restriction among broadcasting channel usage businesses (PP) has been expanded from 33% to 49% of the total sales of all broadcasting channel usage businesses, and ownership restrictions among satellite broadcasting operators have been removed, significantly easing ownership and cross-ownership regulations.

Second, the approval validity period for paid broadcasting business licenses and home shopping channels will be extended to the maximum 7 years stipulated by law, ensuring stable broadcasting operations and greatly reducing the burden on operators. This improves the existing maximum validity period of 5 years for the first time in about 12 years.

Third, documents and facility change approvals that were conventionally submitted will be abolished to expand operational autonomy. The submission of regional channel operation plans by comprehensive cable broadcasting operators and direct-use channel operation plans by comprehensive cable broadcasting operators and satellite broadcasting operators has been abolished, and the change approval for the relocation of main transmission devices by comprehensive cable broadcasting operators and relay cable broadcasting operators has been eliminated.

The Ministry of Science and ICT stated, "With the expansion of M&A autonomy in broadcasting businesses through this enforcement decree amendment, we expect capital investment to be promoted. By substantially reducing the burden on operators through administrative procedure simplification, paid broadcasting operators will be able to focus their capabilities on strengthening competitiveness and innovating services. We will also proceed smoothly with the amendments to the 'Broadcasting Act' and the 'Internet Multimedia Broadcasting Business Act' that were announced for legislative notice in March, and swiftly carry out 'mid- to long-term media legislative reforms' for minimal regulation, self-regulation legalization, and fair competition, continuously promoting regulatory innovation that can be felt on the ground."