Newspapers Can Own Broadcasting Firms
By Kang Hyun-kyung
Staff Reporter
Print media firms are likely to be allowed to own broadcasting companies and vice versa, the presidential transition team said Tuesday.
Lee Dong-kwan, spokesman of the team, told reporters that the next government will seek alternative legislation replacing the current Newspaper Law to give press companies more autonomy.
The spokesman said the new legislation will also focus on strengthening the financial health of the media industry.
Lee said the incoming Lee Myung-bak administration will ease regulations prohibiting cross ownership between media businesses and get rid of stumbling blocks to the growth of their business.
Prof. Kang Kyung-keun of Soongsil University, Seoul told The Korea Times that the alternative legislation, not a revision bill, was inevitable as the current law was lax in coping with the new media environment.
``The distinctive trend in the global media industry shows the line between print and broadcasting has blurred in the past decade. The current Newspaper Law has limitations as it fails to take into account the rapidly changing environment of the industry,'' Kang said.
According to the law, print media are prohibited from having shares of broadcasters, and newspapers and broadcasting companies are not allowed to encroach upon each other's turf.
Experts predict that if the alternative legislation is enacted, newspapers could reach nationwide readers with content-oriented, in-depth coverage through broadcasts.
Major newspaper businesses have called for revisions of the current law so that they can take advantage of the power of broadcasting for business growth.
``Compared with TV companies, the market share of newspapers is extremely limited. The Newspaper Law makes the situation even worse because of regulatory measures,'' the professor said.
The Constitutional Court ruled in 2006 that Articles 17 and 34 of the Newspaper Law are unconstitutional.
Article 17 sets the standards for an oligopoly in the media industry, saying that if one newspaper has 30 percent or more of the market share and if the combined market share of three newspapers goes over 60 percent, they are considered an oligopoly.
The court ruled that this article is unconstitutional as the standard of oligopoly of other industries is 75 percent or more.
The court also said that Article 34, which stipulates that public funds will not be given to the leading newspapers having a high market share, is unconstitutional as it could be misused by the government.
An administration is likely to use the article to offer financial benefits to print media that run favorable coverage, sources said.