Korean Academic Society of Business Administration: "Regulatory Improvement and New Technology Adoption Needed for TV Home Shopping Development"

Photo of the discussion session at the Autumn Academic Conference hosted by the Korean Academic Society of Business Administration on the 17th. (Photo by Korea TV Home Shopping Association)

[Asia Economy Reporter Jeon Jin-young] Experts have expressed the opinion that government-level regulatory improvements and the introduction of new technologies are necessary for the development of the TV home shopping industry.

The Korean Academy of Management held a discussion forum on "Improvement of Home Shopping Regulations and Industry Development" on the morning of the 17th at the Korea Chamber of Commerce and Industry. At the forum, Professor Yoo Byung-joon of Seoul National University’s Department of Business Administration pointed out, “Last year, the operating profit of seven TV home shopping companies decreased by 19.1%, while transmission fees increased by 8.1%,” adding, “The home shopping industry is facing a crisis.”

Experts unanimously agreed that the government’s sales commission rate policy and broadcasting review regulations are excessive. Professor Yoo said, “The government includes plans to reduce the sales commission rate as a condition in the re-approval review of home shopping operators,” criticizing, “This is a regulation where the government effectively controls contracts with suppliers.” Hwang Ki-seop, Director of the Korea TV Home Shopping Association, also emphasized, “It would be fair to impose obligations based on laws rather than conditions during the re-approval process.”

There were also calls to change the Korea Communications Standards Commission’s sanctions on home shopping broadcasts to self-regulation. Professor Choi Jeong-hye of Yonsei University’s Department of Business Administration said, “Since consumers’ discernment to distinguish exaggerated advertisements has improved compared to the past, policy needs to be reconsidered.”

Experts also saw the need for technological attempts alongside regulatory improvements. Professor Yoo stated, “The government should support the introduction of technologies such as virtual reality (VR) and augmented reality (AR).”

Jung Yeon-seung, Policy Chairman of the Korean Academy of Management, added, “Such efforts will inevitably have limited effects as long as excessive regulations on TV home shopping continue,” emphasizing the need to move toward granting autonomy.

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