[Column] "Missed the Timing" Sighs Despite the Abolition of Media Nail Regulations

The government has announced measures to revitalize the media industry, which is being dominated by giant global companies such as Netflix and YouTube. Among these measures is the abolition of the outdated system requiring paid broadcasting operators like cable TV, satellite broadcasting, and IPTV to obtain re-authorization from the government every seven years. The government stated it will lift 13 regulations that have hindered the growth of the media industry, including the paid broadcasting re-authorization system.

The broadcasting industry welcomed the announcement but expressed disappointment, calling the government's measures "too little, too late." Many were skeptical, saying, "It is regrettable that already obsolete provisions were included," or "The timing seems too late."

Some even expressed resentment that the government is only now addressing regulations that the industry has been requesting to improve for over a decade. Except for IPTV operated by the three major telecommunications companies, the paid broadcasting market has long been in decline.

The abolition of regulations on newspaper companies' ownership stakes in paid broadcasting is similar. An industry insider said, "For newspaper companies to find it attractive, it would have to be something like IPTV, but securing more than 50% ownership would require enormous capital investment. The three major telecom companies have no reason to hand over their core businesses to newspaper companies, so realistically, their influence will be minimal."

Broadcasting and Telecommunications Advertising Expenditure Survey Report [Source=Ministry of Science and ICT]

The easing of TV advertising regulations also has uncertain effectiveness. Until now, TV advertisements for high-calorie and high-caffeine foods were prohibited from 5 p.m. to 7 p.m. to protect children's health. Major advertisers like Coca-Cola and McDonald's have moved away from TV to online platforms such as portals and YouTube, where regulations do not apply. According to the Ministry of Science and ICT, terrestrial TV advertising revenue is expected to decrease by 30%, from 1.55 trillion won in 2017 to 1.07 trillion won this year. More than half of the advertising market in 2022 is concentrated on online advertising via mobile and PC. There is no guarantee that lifting regulations will bring advertisers back to a market they have already abandoned.

There are more problems. Most of the key regulations require legal amendments to be abolished, and if the National Assembly obstructs the process, delays are inevitable. Criticism that this is "closing the barn door after the horse has bolted" is unavoidable. The government’s lack of a proactive approach to swiftly respond to market changes is regrettable.