‘Accelerated’ control over internet, such as portal advertising in the ‘reverse discrimination’ controversy of domestic businesses
Kim Soo Yeon | newsnews@dt.co.kr | 2017-02-14 09:47:18
Korea Communication Commission is focusing on internet such as portal advertising control regulation plan after Choi Seong Jun-chairman of Korea Communication Commission statement on necessity of advertising control plan over internet media. Internet experts are worried about domestic businesses reverse discrimination.
According to one official on 13 February, Broadcasting advertising policy department of Korea Communication Commission has registered ‘Research for system improvement plan on overall advertising system’ as this year’s policy research assignment candidate after chairman Choi’s statement.
Earlier Chairman Choi stated that ‘There has been neither supervision nor control over internet business except for self-imposed control over internet businesses’ regarding advertising profit of internet enterprises which profit is even bigger than national broadcasting companies in the field of January advertising profit’. And he said that he would research control regulation plan on internet such as portal, SNS enterprises.
In the situation of contents service not through traditional media such as broadcasting but through internet, the advertising control regulations are strict on newspaper, broadcasting while there is no control regulations on the internet advertising.
In fact, advertising revenue of representative internet enterprises such as Naver and Kakao are growing rapidly. The sum of advertising revenue of two companies last year was 3 trillion 500 billion won, which is about 1 trillion won bigger than 3700 newspapers and 3 national companies’ total advertising revenue.
Therefore, broadcasting experts claimed that the same advertising regulations as broadcasting companies shall be applied to internet video service companies.
The procedures for control regulation plan actualization on portal advertising is being developed fast after Chairman Choi’s statement. Currently, research plan has been submitted to the planning and coordination department of Korea Communications Commission and the planning and coordination department is about to hold review commission this week to confirm this year assignment and research funds. Total 36 assignments have been received as a policy research assignment candidate and research fund will be allocated based on priority which is designated by review commission. Last year Korea Communications Commission secured 1 billion won in the National Assembly as this year’s policy research assignment operation budget.
The research assignment will be announced next week through tender notice of Public Procurement Service. Enterprises to be selected even by over two bids and Korea Communications Commission plans that the assignment to be proceeded at the end of March at earliest. Jang Bong Jin-the head of broadcasting advertising policy department stated that ‘the research shall be proceeded under the purpose of building basic role which can be applied to internet media control including separation of content and advertising, children and teenager protection, media user inconvenience reducing etc.’
Internet enterprises, on the other hand, are concerned about ‘discrimination regulation’. They argue that in the situation of greater control of overseas enterprises in domestic online advertising market, the regulation, which cannot be applied to overseas enterprises such as Facebook, YouTube, will be nothing but reverse discriminative control over domestic enterprises.
A person of domestic portal said that ‘please do not try to control only domestic enterprises’ and he added that ‘The exact data is not published despite of YouTube has made 350 billion won only by video advertising in 2015 (about 80% more than domestic mobile video advertising market) in domestic market’.
He argued that ‘Overseas enterprises can be exempted from regulations due to not opening advertising revenue of them, which is important factor of the regulation application’.
A person of Korea Communications Commission said to stop ‘reverse discrimination’ statement and he added that ‘the regulation will be applied to both domestic and overseas enterprises accordingly’.
A person of Korea Communications Commissions also stated that ‘There is a difference in execution power only. The regulation will be applied in the same way to everyone and it is needed to strengthen maximum execution power.’ And ‘those who are opposing the regulation are going to lose after all.
On the other hand, Chairman Choi will be termed out of office on 7 April this year.
By Kim Soo Yeon newsnews@dt.co.kr
[ copyright ⓒ The Digitaltimes ]
According to one official on 13 February, Broadcasting advertising policy department of Korea Communication Commission has registered ‘Research for system improvement plan on overall advertising system’ as this year’s policy research assignment candidate after chairman Choi’s statement.
Earlier Chairman Choi stated that ‘There has been neither supervision nor control over internet business except for self-imposed control over internet businesses’ regarding advertising profit of internet enterprises which profit is even bigger than national broadcasting companies in the field of January advertising profit’. And he said that he would research control regulation plan on internet such as portal, SNS enterprises.
In the situation of contents service not through traditional media such as broadcasting but through internet, the advertising control regulations are strict on newspaper, broadcasting while there is no control regulations on the internet advertising.
In fact, advertising revenue of representative internet enterprises such as Naver and Kakao are growing rapidly. The sum of advertising revenue of two companies last year was 3 trillion 500 billion won, which is about 1 trillion won bigger than 3700 newspapers and 3 national companies’ total advertising revenue.
Therefore, broadcasting experts claimed that the same advertising regulations as broadcasting companies shall be applied to internet video service companies.
The procedures for control regulation plan actualization on portal advertising is being developed fast after Chairman Choi’s statement. Currently, research plan has been submitted to the planning and coordination department of Korea Communications Commission and the planning and coordination department is about to hold review commission this week to confirm this year assignment and research funds. Total 36 assignments have been received as a policy research assignment candidate and research fund will be allocated based on priority which is designated by review commission. Last year Korea Communications Commission secured 1 billion won in the National Assembly as this year’s policy research assignment operation budget.
The research assignment will be announced next week through tender notice of Public Procurement Service. Enterprises to be selected even by over two bids and Korea Communications Commission plans that the assignment to be proceeded at the end of March at earliest. Jang Bong Jin-the head of broadcasting advertising policy department stated that ‘the research shall be proceeded under the purpose of building basic role which can be applied to internet media control including separation of content and advertising, children and teenager protection, media user inconvenience reducing etc.’
Internet enterprises, on the other hand, are concerned about ‘discrimination regulation’. They argue that in the situation of greater control of overseas enterprises in domestic online advertising market, the regulation, which cannot be applied to overseas enterprises such as Facebook, YouTube, will be nothing but reverse discriminative control over domestic enterprises.
A person of domestic portal said that ‘please do not try to control only domestic enterprises’ and he added that ‘The exact data is not published despite of YouTube has made 350 billion won only by video advertising in 2015 (about 80% more than domestic mobile video advertising market) in domestic market’.
He argued that ‘Overseas enterprises can be exempted from regulations due to not opening advertising revenue of them, which is important factor of the regulation application’.
A person of Korea Communications Commission said to stop ‘reverse discrimination’ statement and he added that ‘the regulation will be applied to both domestic and overseas enterprises accordingly’.
A person of Korea Communications Commissions also stated that ‘There is a difference in execution power only. The regulation will be applied in the same way to everyone and it is needed to strengthen maximum execution power.’ And ‘those who are opposing the regulation are going to lose after all.
On the other hand, Chairman Choi will be termed out of office on 7 April this year.
By Kim Soo Yeon newsnews@dt.co.kr