Industry and Government Departments Have Different Agendas Surrounding Local Commerce

Broadcasting Commission and Home Shopping Industry Halt Amid Ministry of Science and ICT's Legal Amendment Moves

Broadcast screen of the local channel commerce program introduced in line with the 2021 'Korea Together Sale'

[Asia Economy Reporter Cha Min-young] The Ministry of Science and ICT's move to institutionalize the 'local channel commerce' project, where cable TV sells local small business specialty products, is facing opposition from the Korea Communications Commission and the home shopping industry, leading to a power struggle between the two ministries.

According to the broadcasting industry on the 15th, the KCC recently raised objections to the Ministry of Science and ICT's amendment to the Enforcement Decree of the Broadcasting Act to introduce local commerce broadcasting. The Korea TV Home Shopping Association and the T-Commerce Association also submitted opposing opinions to the Ministry of Science and ICT in February. According to the current Broadcasting Act, broadcasting that sells products requires approval for home shopping broadcasting. Initially, local commerce was impossible to introduce, but it was temporarily authorized for two years last year through the 'ICT Regulatory Sandbox' demonstration exception.

The Ministry of Science and ICT, judging from the operation results of the regulatory sandbox, prepared an amendment to the enforcement decree to regularize local commerce programming. However, the KCC and the home shopping industry opposed it. A KCC official said, "There is a total volume regulation on broadcast advertising under the Broadcasting Act, but the Ministry of Science and ICT proposed an amendment to the enforcement decree that exceeds this," adding, "The Broadcasting Act itself should be amended, or local cable TVs should obtain home shopping broadcasting approval." A representative of the Korea TV Home Shopping Association said, "Since this system has no basis in the Broadcasting Act, it requires a legal amendment rather than an enforcement decree amendment," and added, "There is also an issue of reverse discrimination regarding entry and operation regulations imposed on home shopping companies."

In response, a representative of the Cable TV Association said, "Opposing the introduction of commerce broadcasting solely on the grounds of the rigid broadcasting law system contradicts the KCC's past cases of allowing new types of advertising and the future regulatory innovation trend," and argued, "Even if commerce broadcasting partially conflicts with the current advertising regulation system under the Broadcasting Act, there is no unconstitutionality or illegality as it does not violate constitutional provisions or principles such as the principle of proportionality or equality."

A Ministry of Science and ICT official said, "The KCC and the home shopping industry continue to raise objections, and discussions are ongoing," adding, "Since there are legal issues, it may take some time."

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