The evolution of Korean broadcasting regulation: Ownership, Foreign investment and Quota for domestic program regulation

Abstract

Abstract The evolution of Korean broadcasting regulation: Ownership, Foreign investment and Quota for domestic program regulation

Hyunjin NOH Graduate School of International Studies Seoul National University

With the emergence of the WTO, the scope of trade has been expanded from goods to services. Regarding the service sector, particularly opening the broadcasting industry was one of the controversial issues since the broadcasting industry was considered not only as an industry but also as a part of culture. Korea maintained protectionist stance along with France and Canada while U.S. and Japan support liberalist stances. Despite its protectionist stance, Korea gradually eased its broadcasting industry since 1980s. This paper aims to examine how Korea eased its broadcasting regulation through different regimes. We will examine particularly three regulations policies of broadcasting law: the restriction on ownership, foreign investment and the quota for domestically produced programs. Also this study will compare the degree of openness of Korean broadcasting market with the ones of different countries such as the U.S and France.

The Korean Broadcasting Act was eased particularly in three regimes: Chun Doo-hwan, Kim Dae-jung and Lee Myung-bak regimes. During Chun Doo-hwan regime, the broadcasting law was amended as the democratization was realized in ii Korea. The amended law contained new clauses related to openness policy in broadcasting market such as restriction on inflow of foreign capital. During Kim Daejung regime (1998-2003), Korea eased all three regulations amid the wave of globalization. When Lee Myung-bak took power, the restrictions on ownership and on foreign investment were greatly eased due to business friendly policy and Korea- US FTA.

Compared to the regulation policy of the U.S. and France, Korea is on the way of opening its broadcasting market. Though Korea has tightened regulated policy in foreign investment compared to the two countries, it has gradually eased the restriction on foreign investment. Particularly, after Korea-US FTA, foreigners are allowed to own stocks or equity shares unlimitedly of program providing business operator.

Although Korean broadcasting market was mitigated after Korea-US FTA, it is only confined to the Korea-US FTA case, not other FTAs that Korea has signed. Unlike most countries, the U.S has maintained liberalist stance. So the issue of opening the broadcasting market will not likely to revisit during the other FTA negotiations. Thus, we have to see Korean broadcasting market not from trade perspective but from purely broadcasting policy perspective. This is because broadcasting industry is different from other industries since it is a part of culture and not easily considered from commercial perspective.

Keywords: protectionist stance, deregulation policy, Korean broadcasting industry, different regimes, the degree of openness