"Allowing Live Broadcasts on Data Home Shopping... Will Cause Cutthroat Competition"

Special Seminar Hosted by the Broadcasting Society on the 13th
Industry: "Intensified Competition in Transmission Fees, Fee Rates Expected to Rise"

The TV home shopping industry is voicing criticism over the government's move to accommodate demands for allowing live broadcasts on data home shopping (T-commerce).

At a discussion forum titled "Policy Directions for Enhancing Consumer Welfare and Competitiveness of Small and Medium Enterprises in Home Shopping," hosted by the Korean Broadcasting Society at the Dalgabi Conference House in Gwanghwamun, Seoul, at 10 a.m. on the 13th, Professor Cho Chun-han of Gyeonggi Science and Technology University stated, "Allowing live broadcasts on data home shopping does not align with the original purpose of data home shopping or the re-approval conditions set in 2021. Permitting live broadcasts on data broadcasting will lead to excessive competition between TV home shopping and data home shopping, accelerating the increase in transmission fees, which will ultimately result in harm to small suppliers and consumers."

In principle, live broadcasts are prohibited on data home shopping. About ten data home shopping channels can only sell products through recorded broadcasts on TV, while only seven TV home shopping channels are allowed to sell products via live broadcasts. Data home shopping providers have been requesting the lifting of the ban on live broadcasts and the screen size restriction (at least 50% data content), but TV home shopping companies oppose this, arguing that it contradicts the purpose of approving data home shopping businesses.

Professor Moon Sang-il of the Law Department at Incheon National University, who attended the discussion, explained, "If the Ministry of Science and ICT allows live broadcasts on data home shopping, transmission fees will rise sharply. This will worsen the profits of small suppliers, and if suppliers use cheaper materials to reduce costs, consumers will suffer."

Finally, a representative from a home shopping company raised their voice, saying, "There seems to be insufficient consideration for the domestic broadcasting market, which is dying due to overseas OTTs. Since this policy change significantly affects pay broadcasting and small and medium enterprises, the government should take time to communicate thoroughly with businesses to resolve conflicts."

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