Assemblyman Hong Seok-jun, "Merger Procedures Between Affiliate Companies of Paid Broadcasting Businesses Should Be Simplified"
Applying Permit System to Mergers Between Affiliated Companies Is Excessive Regulation
[Asia Economy Reporter Lim Hye-seon] On the 2nd, Hong Seok-jun, a member of the People Power Party, took the lead in proposing a revision to the Broadcasting Act that simplifies regulations from a licensing system to a notification system when a comprehensive cable broadcasting operator, satellite broadcasting operator, or internet multimedia broadcasting service provider merges with an affiliate.
The current law stipulates that broadcasting operators must obtain a change of license or approval when merging with another corporation. Additionally, internet multimedia broadcasting service providers are also required to obtain a change of license when merging with another corporation.
However, as the influence of global online video services (OTT) expands in the domestic market, there is a need to secure the competitiveness of domestic pay broadcasting operators. Applying the procedures of change of license or approval even for mergers between affiliated companies is criticized as an administrative process that hinders companies' swift decision-making to respond to the rapidly changing media environment.
The bill led by Representative Hong Seok-jun simplifies the procedure so that comprehensive cable broadcasting operators, satellite broadcasting operators, and licensed internet multimedia broadcasting service providers only need to notify the Minister of Science and ICT when merging with an affiliate company as defined in Article 2, Clause 12 of the Monopoly Regulation and Fair Trade Act.
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Representative Hong Seok-jun stated, "Currently, broadcasting, telecommunications, and internet multimedia media environments are rapidly changing, and swift decision-making leads to corporate competitiveness. I hope the amendment will be passed promptly to simplify the merger procedures between affiliates of pay broadcasting operators, enabling domestic broadcasters to gain international competitiveness and grow further."
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