As the use of media services based on new technologies, such as video on demand (VOD) and over the top (OTT) services, is rapidly increasing worldwide, broadcasting/media business entities are pursuing not only business diversification, such as launching their own OTT and partnering with each other, but also disruptive innovation that transcends boundaries and areas, such as horizontal and vertical mergers and acquisitions, to secure content production, distribution, and advertising capabilities in response to market changes. Accordingly, while regulations in advance for pay broadcasting are mitigated to promote competition, it is necessary to promote the revision of the Broadcasting Act in a way to complement fair competition- and user protection-related systems, considering the market environment, overseas systems, etc. 

Details

A. Abolish the market share regulation (Article 8 (16) through (19)) 

Abolish the regulation that prohibited a CATV broadcasting business entity or a satellite broadcasting business entity from exceeding 1/3 of the total number of pay broadcasting subscribers.

B. Reinforce the evaluation standards to enhance the publicness and public interests of satellite broadcasting (Article 10-2 (1) 8) 

Newly add matters related to support for reception of broadcasts in island and mountain areas, service provision plans for Korea’s future reunification, management transparency, and effectiveness of internal control to the evaluation standards for the new or renewed license of satellite broadcasting.

C. Establish fair competition-related matters in the evaluation items for new or renewed licenses and mergers and acquisitions (Article 10-2 (1) 7 and Article 15-2 (3) 4 newly inserted) 

To create a fair competitive environment for the pay broadcasting market, specify fair competition-related matters in the evaluation standards for new or renewed licenses and mergers and acquisitions of pay broadcasting.

D. Provide grounds for promoting the diversity surveys and research for pay broadcasting (Article 35-4) 

Newly add matters related to surveys and research on the diversity of broadcasting to the duties of the Media Diversity Promotion Committee to increase media diversity.

E. Establish duties of accounting separation and business report submission (Article 69-3 newly inserted) 

Newly add duties of accounting separation and business report submission to pay broadcasting business entities that meet the standards prescribed by Presidential Decree.

F. Introduce a report system of pay broadcasting service fees (Article 77) 

Prescribe that the service fee approval system of pay broadcasting shall be converted to a report system, but the approval system of minimum channel tier rates shall be maintained to protect users, and the bundle rates shall be approved for businesses that meet the standards prescribed by Presidential Decree.

G. Establish a provision on prohibited acts of related parties (Article 85-2 (2) 9 newly inserted) 

Define the acts of providing channels or distributing profits with significantly favorable conditions to a broadcasting business entity, etc., which is a related party, without justifiable reasons as prohibited acts.

H. Activate regional channels of CATV broadcasting business entities (Article 92-4) 

Impose on CATV broadcasting business entities obligations for trying to maintain and strengthen locality through activation of regional channels, and provide a basis for financial support for local content production.

Reinforce the evaluation standards to enhance the publicness and public interests of satellite broadcasting (Article 10-2 (1) 8), Establish fair competition-related matters in the evaluation items for new or renewed licenses and mergers and acquisitions (Article 10-2 (1) 7 and Article 15-2 (3) 4 newly inserted), Establish duties of accounting separation and business report submission (Article 69-3 newly inserted), Establish a provision on prohibited acts of related parties (Article 85-2 (2) 9 newly inserted)