By Kim Tong-hyung
Staff Reporter
South Korea's top media policymaker vowed to push forward the government-led deregulation of the media market, despite attempts by opposition party lawmakers and unionized journalists to derail the moves.
In a news conference on Sunday, Choi See-joong, chairman of the Korea Communications Commission (KCC), the country's broadcasting and telecommunications regulator, said that his agency will complete the regulatory framework for the licensing of new cable news and entertainment channels next month.
Choi also said the government could raise the reception fees for national television channel, KBS, which is now included in household electricity bills, while pressing new board members of MBC, another terrestrial network, to proceed on the privatization process for the station.
``It would be ideal that we announce specific policy plans to encourage the emergence of more cable news and comprehensive programming channels, while finalizing the licensing process,'' Choi said.
``With the new media reform bill passing through the National Assembly, the media industry got an opportunity to achieve real growth for the first time in 30 years. It would be regrettable if unproductive political debate disturbs the process.''
The ruling Grand National Party (GNP) rammed through a controversial media reform bill, which calls for easing the country's cross-ownership restrictions on newspapers and television stations.
The changes now allow the same corporate owner to have a newspaper and as much as 10 percent of a terrestrial television station. Newspapers can also hold up to 30 percent in cable news channels and ``comprehensive'' channels that combine news and entertainment programs.
Although the Lee Myung-bak government insists that the changes are vital for sparking new competition in the media industry and allow ``global'' media organizations to emerge, critics have been claiming that the new rules will threaten diversity in media ownership and discourse.
It remains to be seen how far the government will manage to push the deregulation efforts, with lawmakers from the opposition Democratic Party filing petitions with the Constitutional Court last week, calling for the nullification of the revised media laws, claiming irregularities in the voting process.
There is also inner-conflict within the KCC over the issue. Last week, two of the five KCC commissioners Lee Byeong-gi and Lee Kyung-ja, both appointed to their seats by opposition parties, said they will refuse to discuss media reform policies before the Constitutional Court makes its verdict.
Choi criticized the decision by the two commissioners, claiming that the KCC, as an administrative body, can't afford to drag behind schedule.
``Who knows how long it will take the Constitutional Court to come up with a decision. In the meantime, we have to do what we have to do,'' Choi said.
The country's ``big three'' newspapers with the widest circulations ― Chosun Ilbo, JoongAng Ilbo and Dong-A Ilbo ― are considered to be the main beneficiaries of the changes. The three, which combine for about 70 percent of overall readership, have been looking to leverage their dominance to the television sector, with the traditional newspaper market continuing to struggle with the emergence of new media from the Internet and broadcasting.
The three newspapers are distinctive for their conservative outlooks and considered the biggest backers of the Lee Myung-bak government.
Although media unionists and smaller news outlets dread the possibility of one of the ``Cho-Joong-Dong'' trio having influence over national television networks like MBC or KBS2, industry watchers say it is more likely that the newspapers are thinking cable, rather than chasing the more expensive terrestrial channels.
Government officials expect the major newspapers, which have been dipping their toes into the pay-TV market over the years, to seriously consider the possibilities of operating new cable news and comprehensive programming channels. Choi stressed that no media outlet would be preferred over another in the licensing process.
``I assure you that no particular newspaper or company will receive preferential treatment. It will be a fair competition,'' Choi said.
Although the KCC hasn't finalized the licensing plans, Choi said that there is likely to be one additional license offered for a news-only channel and two new licenses for comprehensive channels.
``Like the way that three companies are competing in the telecommunications market, I think that it would be ideal for three players to compete in each market for terrestrial, cable news and comprehensive channels,'' Choi said.
Currently, there are two 24-hour cable news channels, YTN and MBN, and KCC officials are likely to provide licenses for two comprehensive programming channels first and add another one later.
Choi also said that the government is intent on pushing the privatization process of MBC. One of the three biggest terrestrial channels along with KBS and SBS, MBC is 70-percent owned by the state-run Foundation for Broadcast Culture. The remaining 30 percent is held by the Jeongsu Scholarship Foundation, which calls former GNP chairwoman Park Geun-hye as president.
The current board members of the Broadcast Culture Foundation end their three-year terms in August, and KCC holds the right to name all nine of the board members.
``As I said last year during the 20th anniversary ceremony of the Broadcast Culture Foundation, I believe that MBC needs to choose whether it wants to be a public organization or a private organization,'' Choi said, adding that the KCC officials are talking with MBC officials over the candidates for the new board.
The issue of raising the KBS reception fees will likely be decided by the television station's new board sometime next year, Choi said.