Meeting between Kim Hong-il, Broadcasting Commission Chairman, and OTT Industry
Industry: "Minimal Regulation, Maximum Promotion... Please Protect Domestic Industry"
Representatives of the four major domestic online video service (OTT) companies emphasized the principle of ‘minimal regulation, maximum promotion’ for market development and requested Chairman Kim Hong-il of the Korea Communications Commission to ease regulations and provide policy support.
On the 28th, Chairman Kim held a meeting at the Government Complex Gwacheon with domestic OTT representatives including Choi Joo-hee, CEO of TVING; Lee Tae-hyun, CEO of Wavve; Kim Sung-han, CEO of Coupang Play; and Park Tae-hoon, CEO of Watcha.
The representatives reportedly suggested that "when the KCC pursues the reorganization of the regulatory system for the entire media sector, it is necessary to apply the principle of ‘minimal regulation, maximum promotion’ to OTTs, and more active support is needed for the overseas expansion of domestic OTT operators."
They added, "Although the market environment is challenging, we intend to continuously strengthen investments," and "We hope the KCC will actively implement protection and support policies for the domestic industry so that the domestic OTT sector can overcome financial difficulties and respond to the onslaught of global OTTs."
Lee Tae-hyun, CEO of Wavve, told reporters immediately after the meeting, "I conveyed the industry's difficulties to the chairman, especially requesting a more lenient approach to the Integrated Media Act." He explained, "By 'lenient,' I mean to view this regulation (Integrated Media Act) more generously."
The Integrated Media Act encompasses existing media such as TV and radio as well as OTT. The government’s plan is to revise the Broadcasting Act, which has remained unchanged for over 20 years, and bring OTTs, which are currently in a legal blind spot, under regulatory oversight. If the law passes, OTTs, which currently face relatively fewer regulations compared to other media, may be subject to increased regulation.
In addition, the representatives reportedly requested tax credits for original content and the resolution of unfairness in competition with global big tech companies such as Google and Netflix.
Chairman Kim responded to these industry demands by stating, "The integrated media legislation will be reasonably prepared by fully reflecting the opinions of operators under the principle of minimal regulation." He added, "To leap forward as a global media powerhouse in the digital era, we will actively strive to revitalize the OTT industry through policy support for securing global networks and overseas expansion of domestic OTTs."
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