Broadcasters Say Competition in TV Advertising Necessary
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By Kang Hyun-kyung
Staff Reporter
Major broadcasters admitted Tuesday that allowing competition in the current monopoly-dominated broadcasting advertising market was a necessary step to keep pace with global trends in media convergence.
They differed, however, over details of the reform in the current media representative system, saying much discussion was needed before lawmakers could come up with concrete legislation.
Media representatives are the agents buying media time or space from media owners and selling them to national advertisers, profiting from transaction fees.
Under the current system, the Korea Broadcasting Advertising Corp. (KOBACO) is the only public media representative that handles television advertising.
The monopoly system was challenged after the Constitutional Court ruled last November that it was unconstitutional.
Despite the decision, the court said the current system would be effective for the time being until a competition-oriented revision bill is passed in the legislature.
In a seminar to look into necessary measures for the future revision bill, presenters of KBS, MBC and SBS said the broadcasters should be allowed to be shareholders in the governance of media representatives. Rep. Choi Moon-soon of the largest opposition Democratic Party chaired the event.
The big three networks hailed the court's decision but differed over the details of governance.
MBC said that legislators should pay extra attention to leveling the playing-ground in the media industry so that all players, including broadcasters, print media and other possible shareholders, can compete in a fair manner.
KBS, meanwhile, called for setting a ceiling on the ratio of stakes that each shareholder can have so as to prevent the possible misuse of influence in the business operations of media representatives.
As for the number of media representatives, KBS proposed a two-way system of one public and one private media representative, saying allowing too many agents to operate would do more harm than good.
SBS, meanwhile, said broadcasters should be allowed to participate as shareholders, but conglomerates and advertising firms should not be part of the governance of media representatives to prevent their possible influence on the content of television programs.
It also said the largest shareholder should be permitted up to a 51-percent stake in a media representative.
Under the court's decision, lawmakers must change the law governing KOBACO in a manner that allows multiple players to join the television advertising market.
They are scheduled to vote on a set of media-related bills by June _ reform of media representatives will be discussed after this.
Staff Reporter
Major broadcasters admitted Tuesday that allowing competition in the current monopoly-dominated broadcasting advertising market was a necessary step to keep pace with global trends in media convergence.
They differed, however, over details of the reform in the current media representative system, saying much discussion was needed before lawmakers could come up with concrete legislation.
Media representatives are the agents buying media time or space from media owners and selling them to national advertisers, profiting from transaction fees.
Under the current system, the Korea Broadcasting Advertising Corp. (KOBACO) is the only public media representative that handles television advertising.
The monopoly system was challenged after the Constitutional Court ruled last November that it was unconstitutional.
Despite the decision, the court said the current system would be effective for the time being until a competition-oriented revision bill is passed in the legislature.
In a seminar to look into necessary measures for the future revision bill, presenters of KBS, MBC and SBS said the broadcasters should be allowed to be shareholders in the governance of media representatives. Rep. Choi Moon-soon of the largest opposition Democratic Party chaired the event.
The big three networks hailed the court's decision but differed over the details of governance.
MBC said that legislators should pay extra attention to leveling the playing-ground in the media industry so that all players, including broadcasters, print media and other possible shareholders, can compete in a fair manner.
KBS, meanwhile, called for setting a ceiling on the ratio of stakes that each shareholder can have so as to prevent the possible misuse of influence in the business operations of media representatives.
As for the number of media representatives, KBS proposed a two-way system of one public and one private media representative, saying allowing too many agents to operate would do more harm than good.
SBS, meanwhile, said broadcasters should be allowed to participate as shareholders, but conglomerates and advertising firms should not be part of the governance of media representatives to prevent their possible influence on the content of television programs.
It also said the largest shareholder should be permitted up to a 51-percent stake in a media representative.
Under the court's decision, lawmakers must change the law governing KOBACO in a manner that allows multiple players to join the television advertising market.
They are scheduled to vote on a set of media-related bills by June _ reform of media representatives will be discussed after this.
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