my timesThe Korea Times

Existential Crisis Befalls KCC

Listen

Does Korea Need a Dedicated Information-Technology Agency?

By Kim Tong-hyung

Staff Reporter

Just two years into its existence, the Korea Communications Commission (KCC) appears to be the bureaucratic equivalent of Swiss cheese ― known more for its holes than substance.

Apparently, this is not what the Lee Myung-bak government pictured when it took the Ministry of Information and Communication (MIC) and the Korean Broadcasting Commission and blended them into KCC, the country's first converged regulator for broadcasting and communications.

The reasoning for the shakeup was simple ― the distinction between telecommunications, broadcasting, entertainment and information services is continuing to blur, and it no longer make sense to have separate regulators or different rules.

Aside of the concerns that the country would be losing a dedicated technology agency in the MIC, there were also worries about concentrating too much power into a single government body.

However, after witnessing the Ministry of Culture, Sports and Tourism acquire a stronger role in controlling television content and the Ministry of Knowledge Economy getting a larger say in technology industry growth policies, the KCC is worried more about losing some of its relevance than shouldering excessive responsibility. The country's fourth technology agency is the Ministry of Public Administration and Security, which handles e-government efforts.

``It's hard to say that KCC has a role as a converged regulator, when the introduction of the agency resulted in a further segmentation of regulations, rather than a consolidation,'' said an official of mobile telephony carrier, who didn't want to be named.

``It's frustrating for us in doing business, as there are always those (government officials) who get touchy whenever we meet and talk with people from a different government ministry. Considering the strengthening trend of convergence between hardware and software, as well as service and manufacturing, which is forcing companies like us to adapt and survive, the current regulatory system can be accused of holding businesses back.''

Although some observers say that growing pains are inevitable, others argue that the spreading of power has resulted in a leadership void in the country's technology policies, which seem to lack the pace and purpose of the days of the MIC.

All this is leading to serious talks on whether the country should bring back the MIC or something like it. Earlier this week, National Assembly speaker Kim Hyung-o called for the establishment of a dedicated technology agency with centralized power over ``ICCT,'' or information, communication, content and technology.

Just a year ago, KCC officials wouldn't have dared to touch the debate over a resurrected MIC with a bargepole. Now, they are suddenly vocal about their agency gaining status as an ``IT control tower,'' as it becomes apparent that the KCC is punching below its weight.

Meeting with reporters recently, KCC Chairman Choi See-joong admitted that the decision to retire the MIC and spread its functions to four government bodies was ``inconsiderate.''

``There has been constant friction between the KCC, knowledge economy ministry and the culture ministry over boundaries, especially over content,'' Choi said.

``Despite the overlaps, it is also true that each agency is just doing the jobs assigned to them. You have to admit that the inconsiderate reshuffling of government organizations is hurting what Korea achieved in the past 20 years as an IT-driven nation.''

Specter of MIC Looms

To put it briefly, the KCC is currently responsible for the regulations on broadcasting and telecommunications, and also the new business areas created as a result of the convergence between the two sectors, such as Internet protocol television (IPTV).

The Ministry of Knowledge Economy handles the policies for industrial production and research and development (R&D), while the culture ministry is responsible for the policies on content.

However, the lack of cohesion between the government bodies is a letdown for technology companies, as they scramble to adapt and create new products in a post-Apple world where the convergence between hardware, software and services is strengthening.

The lack of direction was painfully exposed last year when the KCC and knowledge economy ministry engaged in a messy fight over who gets to use national funds for information technology and broadcasting-telecommunications promotion. This year, the KCC locked horns with the culture ministry over who gets to spend the money for content development.

Apparently, businesses would rather have a single government agency to answer to, and KCC would be more than glad to become it. The sense of urgency only grew among KCC officials as the knowledge economy ministry recently announced a slew of measures to ease Internet regulations and promote the software industry.

Some parts of the ministry's plans, including reducing real-name registrations on Web sites and approving a wider variety of security programs for mobile-phone-based financial services, were basically repeats of earlier suggestions by the KCC. And unless changes are coming, this surely won't be the last time the government agencies get petty over who gets the last say.

``The Ministry of Knowledge Economy is clearly stepping over the lines. And there are complaints among KCC officials that we compromised too much in negotiating our boundaries with the culture ministry in the past two years over regulating content, especially with broadcasting,'' said a KCC official, who previously was with the Korean Broadcasting Commission.

``KCC Chairman Choi See-joong has a special position in the Lee Myung-bak administration, and it's his job to see the whole picture and consider ways to achieve chemistry between different government bodies. But now, with all the talk about an IT control tower, there is a consensus that we need to become more assertive.''

The suggestion by National Assembly Speaker Kim excites KCC officials, who believe that they should be absorbing the powers assigned to the knowledge economy and culture ministries.

Granted, Kim's plan has yet to gain full support from his colleagues at the ruling Grand National Party (GNP), but KCC officials are taking it as a starting point of debate.

One idea is to consolidate the IT-related functions of the KCC, and knowledge economy and culture ministries into a new government body that would essentially be MIC 2.0. Another option is to conjoin parts of the KCC and Ministry of Culture to streamline the policies for services and content.

However, it remains to be seen whether the Lee administration, which touts itself as a ``small government,'' will swallow its pride and green-light the plans for a new, super-charged government organization.