ID :
71764
Thu, 07/23/2009 - 15:59
Auther :
Shortlink :
https://oananews.org//node/71764
The shortlink copeid
(News Focus) S. Korean companies cautious about entering broadcast sector
SEOUL, July 23 (Yonhap) -- Local companies are cautious about making any forays
into the broadcast sector, industry sources said Thursday, despite the
parliament's passage of media reform bills that allows large businesses to own
stakes in major broadcasting stations.
Ruling party lawmakers on Wednesday passed the controversial bills aimed at
easing restrictions on ownership of television networks in the face of strong
opposition by rival parties.
Under the revised laws, newspapers and private companies will be allowed to own
up to 10 percent of terrestrial TV stations, 30 percent of general programming
and content providers and 30 percent of all-news TV channels.
But newspapers with more than 20 percent of the country's total readership will
be banned from entering the broadcasting industry.
"As of now, we don't have any plans to launch a broadcasting unit," said an
official at LG Group, asking not to be named. "There are still uncertainties ...
Business ventures are aimed at making money or boosting corporate image. But this
is not the case when going into broadcasting in South Korea," he said.
The official with one of the country's largest conglomerates said most local
business groups are currently struggling with the ongoing economic slump and do
not have the resources available to divert towards the broadcast sector.
The ruling Grand National Party (GNP) claims that the bills will help create tens
of thousands of jobs and significantly improve the competitiveness of the
country's media industry, but opposition parties say that the revised laws
undermine the independence and diversity of news outlets. They add that the laws
reflect the government's attempt to streamline and control the media.
"There are still many people opposing the move," said an official at SK Group,
another of South Korea's leading conglomerates. "There are also many other things
that need to be addressed in the future, so now is not the time to enter into the
(broadcast) business."
Park Jong-soo, an analyst at Hanwha Securities, said local business groups would
not be interested in entering the broadcasting business as the sector is riddled
with regulations.
"Even if the government offers incentives and adopts further deregulations to
lure business groups, most will not be willing to get directly involved in the
industry," he said.
Analysts say due to the economic slump, the local advertising market is rapidly
shrinking as well.
According to the Korea Communications Commission, combined sales at three
terrestrial TV stations totaled 3.39 trillion won last year, down 3.4 percent
from a year earlier.
Income from advertising also fell 8.7 percent, or 208 billion won, to 2.19
trillion won last year, according to the nation's telecom regulator. Advertising
income peaked at 2.72 trillion won in 2002.
sam@yna.co.kr
(END)
into the broadcast sector, industry sources said Thursday, despite the
parliament's passage of media reform bills that allows large businesses to own
stakes in major broadcasting stations.
Ruling party lawmakers on Wednesday passed the controversial bills aimed at
easing restrictions on ownership of television networks in the face of strong
opposition by rival parties.
Under the revised laws, newspapers and private companies will be allowed to own
up to 10 percent of terrestrial TV stations, 30 percent of general programming
and content providers and 30 percent of all-news TV channels.
But newspapers with more than 20 percent of the country's total readership will
be banned from entering the broadcasting industry.
"As of now, we don't have any plans to launch a broadcasting unit," said an
official at LG Group, asking not to be named. "There are still uncertainties ...
Business ventures are aimed at making money or boosting corporate image. But this
is not the case when going into broadcasting in South Korea," he said.
The official with one of the country's largest conglomerates said most local
business groups are currently struggling with the ongoing economic slump and do
not have the resources available to divert towards the broadcast sector.
The ruling Grand National Party (GNP) claims that the bills will help create tens
of thousands of jobs and significantly improve the competitiveness of the
country's media industry, but opposition parties say that the revised laws
undermine the independence and diversity of news outlets. They add that the laws
reflect the government's attempt to streamline and control the media.
"There are still many people opposing the move," said an official at SK Group,
another of South Korea's leading conglomerates. "There are also many other things
that need to be addressed in the future, so now is not the time to enter into the
(broadcast) business."
Park Jong-soo, an analyst at Hanwha Securities, said local business groups would
not be interested in entering the broadcasting business as the sector is riddled
with regulations.
"Even if the government offers incentives and adopts further deregulations to
lure business groups, most will not be willing to get directly involved in the
industry," he said.
Analysts say due to the economic slump, the local advertising market is rapidly
shrinking as well.
According to the Korea Communications Commission, combined sales at three
terrestrial TV stations totaled 3.39 trillion won last year, down 3.4 percent
from a year earlier.
Income from advertising also fell 8.7 percent, or 208 billion won, to 2.19
trillion won last year, according to the nation's telecom regulator. Advertising
income peaked at 2.72 trillion won in 2002.
sam@yna.co.kr
(END)
