By Kim Rahn
Staff Reporter
The Constitutional Court ruled Thursday that the state-run media representative's monopoly of ad agency work for KBS and other terrestrial broadcasters is unconstitutional.
The court recommended the government revise the Broadcasting Law by December 2009, until then the law will remain effective.
The court said the law guaranteeing the monopoly of Korea Broadcast Advertising Corp. (KOBACO) is against the Constitution.
A media representative is a broadcasting ad agency that connects broadcasters and advertisers. KOBACO has monopolized the work for 147 terrestrial television and radio stations nationwide.
The ruling comes following a petition in 2006 by a private ad agency. The agency head claimed that the law allowing only KOBACO and its affiliates to do the agency work for terrestrial broadcasters infringed on the right for equality and the freedom of choice.
``There may be other ways to secure diversity and public interest of broadcasting. The law infringed on private agencies' right for equality and vocational freedom by making KOBACO monopolize the ads without devising other ways,'' the court said. ``If the law becomes ineffective right now, the ad sales market can become chaotic. So the law can be applied by the end of 2009.''
The court recommended the government come up with measures to encourage broadcasters produce programs of public interest, such as providing subsidies.
Founded in 1981, KOBACO has been the exclusive agency for terrestrial broadcast advertising. It has helped finance smaller local broadcasters and religious broadcasters, which are less favored by advertisers compared to big broadcasters such as KBS, MBC and SBS. But there has been criticism about the monopoly.
National Union of Mediaworkers and labor unions of Christian Broadcasting System and Buddhism Broadcasting System denounced the court's ruling, claiming KOBACO played an important role in maintaining broadcasting independence by preventing advertisers from directly having influence on programs.
``If KOBACO is abolished and private media representatives are set up, broadcasters will have to compete to make more sensational programs to attract advertisers and will not make less programs for public good. Advertisers will also want to sponsor only big broadcasters, not local ones,'' they said in a statement.
The Lee Myung-bak administration has said it plans to adopt private media representatives for terrestrial broadcasting.