Controversy is mounting over the Korean Broadcasting Commission's decision to permit mid-program TV ads on the country's three major TV stations.
The nine-member commission, which regulates the local broadcasting industry, announced early this month that it will allow the three broadcasters to run commercial breaks because they are having difficulty competing with emerging cable and satellite TV stations. The commission also noted that the three networks need stable sources of revenue to complete the transition to digital broadcasting. The three are the state-run Korea Broadcasting System and two commercial stations -- Munhwa Broadcasting Corp. and Seoul Broadcasting Station.
After the announcement, civic groups including the Media Viewers Rights Association, a confederation of 72 media rights and civic organizations, launched an all-out campaign urging the commission to reverse its decision. They are criticizing the commission for ignoring the rights of TV viewers, saying they already suffer through a growing number of commercials aired by the TV broadcasters and mid-program advertising disturbs the continuity of TV viewing. They also claim that the commercials will affect the welfare of TV viewers, pointing out the public role of the country's major broadcasters. KBS is owned by the government and MBC is partially owned by the state.
The broadcasting panel is being particularly criticized for allowing state-run KBS to get more money. Critics point out the failure of keeping to the function of the public channel, noting that there is no country that permits commercial breaks for public TV stations.
KBS has also been accused of proposing a plan to collect more subscription fees, without trying to cut costs through implementing managerial restructuring. In July, the public channel decided to raise its monthly subscription fee from the present 2,500 won ($2) to 4,000 won.
The increase of the subscription fees should get approval from the National Assembly. Experts predict that the three TV stations could generate 530 billion won ($580 million) in additional revenues from commercial breaks.
Cable TV stations and newspapers are worried that their revenue from commercials might drop as more advertisers would invest money on mid-program ads with the networks. Cable and satellite TV stations are currently allowed to put commercial breaks in the middle of programs.
Some critics even raised the possibility that the commission is trying to win the favor of the three big TV stations by easing the advertising rules before the presidential election on Dec.19.
Under growing pressure from civic groups and related businesses -- newspapers and cable TV stations -- the commission held a public hearing yesterday afternoon in an effort to diffuse the controversy. The commission said it would hear the opinions of civic groups and industry insiders. The panel stuck to its decision to permit mid-program TV ads at the hearing, but said it will only partially allow the airing of mid-program ads, offering a list of restrictions.
The commission said it will ban TV stations from dividing lengthy programs like movies into two separate parts and putting commercial breaks in each part. It put the issue of the maximum length of the mid-program TV ads and the number of such breaks in each program up for discussion in the open forum.
The commission again claimed that commercial breaks are needed to help the nation's three major broadcasters increase their competitiveness before market opening.
"The free trade agreement between Korea and the United States concerning broadcasting and audiovisual services is expected to bring substantial changes to the market environment, pressuring the local industry to become more competitive in securing viewers", said Kim Sang-hoon, professor of Inha University, one of the participants at the hearing. "The major TV networks will require sources of revenue to strengthen their competitiveness before market opening".
Members from the country's newspaper association refuted the idea.
"There are a lot of technical, procedural problems with the commission's decision. And the decision should not be made in haste", said Kim Taek-hwan, advisor to the Korean Association of Newspapers.
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