[Broadcasting Commission Report] Growing 'Native OTT' to Compete with Netflix and YouTube (Comprehensive)

Sang-hyuk Han, Chairman of the Korea Communications Commission
[Photo by Korea Communications Commission]

[Asia Economy Reporter Kim Heung-soon] The government will ease regulations and increase support to enable domestic OTT providers to stand out in competition with global online video service (OTT) operators such as Netflix and YouTube.

According to the 2020 work plan of the Ministry of Science and ICT and the Korea Communications Commission on the 16th, the government will apply the principle of minimum regulation so that domestic OTT platforms can innovate freely like Netflix and YouTube, and will promote fee reductions so that paid broadcasting can also leap forward in the changed environment.

◆ Strengthening indigenous OTT content = The Ministry of Science and ICT will support 3.7 billion KRW this year to activate the production of OTT specialized content such as web dramas, web entertainment, short-form (complete videos that can be watched in a short time) content, and one-person media. It will also invest 4.2 billion KRW to establish OTT education courses for professionals in the broadcasting content field and expand the number of subjects (from 135 to 145).

Additionally, a cross-ministerial task force (TF) composed of the Office for Government Policy Coordination, Ministry of Science and ICT, Ministry of Economy and Finance, Korea Communications Commission, Financial Services Commission, Ministry of Employment and Labor, Ministry of Culture, Sports and Tourism, and Fair Trade Commission will establish a plan to create a virtuous cycle ecosystem of content, platform, and network (tentatively called the Digital Media Ecosystem Development Plan) by March.

◆ Alleviating reverse discrimination against domestic OTT = Han Sang-hyuk, Chairman of the Korea Communications Commission, said, "Not only Netflix but also global OTT operators such as Disney Plus are expected to enter the domestic market," and added, "We will prepare policies to maintain fairness so that domestic operators are not treated discriminatorily." In particular, illegal activities by overseas operators will be strictly investigated and inspected, and major overseas operators will be included in user protection evaluations to ensure regulatory fairness between domestic and foreign operators. Separately, support will be provided to help domestic OTT operators smoothly enter platforms in key New Southern countries such as Indonesia and Thailand and develop into Korea-ASEAN OTTs.

However, Chairman Han emphasized, "Existing paid broadcasting demands more active regulatory policies on OTT, while OTT operators are requesting minimum regulation that does not exceed current regulations from the perspective of industry revitalization," and said, "We need to listen carefully to these conflicting opinions and gather opinions with related ministries, especially the Ministry of Science and ICT, to prepare appropriate policies."

◆ Creating a fair competition environment in broadcasting and communications = The Korea Communications Commission plans to add new types of unfair practices occurring in the broadcasting market to prohibited acts and introduce on-site investigation rights for paid broadcasters to improve investigation efficiency. It also plans to add conditions for re-licensing (re-approval) of broadcasters to comply with the 'Broadcast Program Outsourcing Transaction Guidelines' enacted in July last year and promote the use of standard contracts to induce win-win cooperation in the outsourcing production market.

Furthermore, it announced plans to resolve outdated regulations in the broadcasting sector such as advertising, sponsorship, programming regulations, and regional cross-ownership regulations, define a user-centered media concept, and prepare mid- to long-term broadcasting regulation reform plans responding to the broadcasting and communications convergence environment.

◆ Preventing fake news and blocking harmful information = A private-led 'Fact-Check Center' to prevent the spread of false manipulated information (fake news) will be established as early as this year. Chairman Han said regarding the Fact-Check Center, "The government will support infrastructure so that centers in the private sector can be established and fulfill their roles," and added, "We will strive to establish the center within this year through public contests." This is the first time a rough launch timeline has been announced since Chairman Han mentioned the establishment plan for the center to activate private fact-checking functions in November last year.

He said, "Overseas, various fact-check centers receive IFCN (International Fact-Checking Network) certification and the process of publishing results is very active," and added, "In Korea, fact-checking is still at a very rudimentary level and lacks infrastructure." However, he made it clear that while the government will support the center's establishment, it will not intervene or interfere.

The Korea Communications Commission will also strengthen cooperation with related ministries by promptly reviewing and blocking digital sex crime videos within 24 hours and operating a joint cross-ministerial database (DB) to identify related videos to respond to illegal harmful information. To respond to the advancement of the intelligent information society, the 'Intelligent Information Society Policy Center' established earlier this month will discuss practical measures to protect users of the intelligent information society centered on public-private consultative bodies and support related policies.

◆ Creating a trusted broadcasting environment = Chairman Han also pledged, "We will strictly carry out re-licensing (re-approval) examinations of terrestrial, comprehensive programming, and news channels according to laws and principles." He mentioned this point in his New Year's address this year, emphasizing once again, "We will faithfully fulfill the authority and responsibility given to the Korea Communications Commission in the re-licensing and re-approval examinations."

Starting with YTN and Yonhap News TV in March, TV Chosun and Channel A (April), JTBC and MBN (November), and terrestrial broadcasters (December) have license and approval validity periods approaching. Some point out that there are broadcasters with violations equivalent to license cancellation, and the Korea Communications Commission cannot be free from responsibility. Chairman Han said, "Investigations on specific broadcasters are underway, and the Korea Communications Commission must conduct its own investigations and legal reviews," and added, "If problems are found with the Korea Communications Commission separate from the re-licensing and re-approval procedures, we will sincerely apologize to the public and prepare improvement measures for legally problematic parts."

The Korea Communications Commission also plans to introduce a public opinion hearing system during broadcaster re-licensing and re-approval examinations to create a trusted broadcasting environment. It is a method of receiving public opinions, questioning broadcasters, and disclosing their answers. When appointing directors and presidents of public broadcasters such as KBS, plans will be made to guarantee public participation and enhance procedural transparency. To increase the reliability of disaster broadcasting, evaluations related to this will be strengthened in broadcasting re-licensing, re-approval examinations, and broadcasting evaluations.

In addition, in relation to the controversy over the assault of minors during YouTube live broadcasts last year, guidelines will be established to protect the rights of child and adolescent performers, strengthening the protection of vulnerable groups' rights. Chairman Han said, "Issues of child and adolescent human rights can be enforced through punitive laws or by adhering to principles through guidelines," and emphasized, "We will establish policies so that these principles apply not only to broadcasting but also to communication content produced by broadcasters such as YouTube."

This content was produced with the assistance of AI translation services.