First Step Toward Abolishing Paid Broadcasting Reauthorization... Discussion on Media Industry Development Plans

Ministry of Science and ICT Preparing Broadcasting Act Amendment as Government Proposal
Gathered Media Industry Stakeholders Last Month for Feedback

It has been confirmed that a government-level discussion took place on measures to develop the media and content industry, focusing on the abolition of paid broadcasting reauthorization. The possibility of the content, which had been discussed within an advisory body directly under the Prime Minister, being drafted into a bill has increased.

According to the media industry and the Ministry of Science and ICT on the 18th, last month the Ministry of Science and ICT discussed amendments to the Broadcasting Act with some media industry stakeholders, including IPTV, cable TV, satellite broadcasting, and content providers. The amendment is still in draft form and is being prepared as a government-initiated bill. A Ministry of Science and ICT official stated, "The subject of bill initiation may vary depending on the situation."

This discussion is an extension of the "Media Content Industry Convergence Development Plan" announced in March by the Media Content Industry Convergence Development Committee (hereinafter referred to as the Convergence Committee), an advisory body directly under the Prime Minister.

The Convergence Committee previously proposed development measures including ▲expansion of tax credits for video content production costs ▲establishment of a 1 trillion won-scale K-content and media strategic fund ▲abolition of paid broadcasting reauthorization and reapproval systems ▲improvement of ownership restrictions ▲enhancement of autonomy in operating paid broadcasting channels. Among these, the tax credit for production costs has already been implemented through the amendment of the Restriction of Special Taxation Act in December last year, and since the K-content media strategic fund is not a matter requiring legal amendment, follow-up procedures such as selecting a delegated management company are underway.

The subjects under discussion include the abolition of paid broadcasting reauthorization and reapproval systems and improvement of ownership restrictions, which require amendments to the Broadcasting Act. The abolition of the reauthorization and reapproval systems involves eliminating the reauthorization and reapproval reviews conducted every seven years after entering the broadcasting market to ensure business stability, while the improvement of ownership restrictions focuses on easing limits on broadcasting media shares held by large corporations, daily newspapers, and foreigners. It is also reported that proposals such as "enhancing autonomy in channel operation" by abolishing the obligation to operate more than 70 channels were discussed together.

Although discussions have begun, it is expected to take time before the amendment bill is completed. Since the Broadcasting Act amendment must include all discussed content, even if one issue is reviewed, if discussions on other issues take a long time, the final draft will inevitably be delayed.

Passing the bill will also face challenges. The standing committee, the Science, Technology, Information and Broadcasting and Communications Committee, consists of 13 opposition members and 7 ruling party members, making the initial process difficult. An industry insider predicted, "Even if the government wants to amend the bill, it will be difficult without cooperation from the opposition."