Staff Writer
Aug 28, 2008

Will the KCC end Kobaco's hold on ad distribution?

The new Korean Communication Commission's chief, Choi See-joong, has vowed to ease state body Kobaco's hold on TV and radio ads. But is this a realistic plan?

Will the KCC end Kobaco's hold on ad distribution?








       
Les Edwards
VP & managing partner
Lee DDB
David Richardson
Regional director of North Asia & Great China
TNS
Steve Yi
Strategic planning director
Grey Korea
Blair Currie
CEO Japan & Korea
Aegis Media

NO

MAYBE

YES

NO

“It is unlikely that anything will happen in the short term. It would take a great deal of effort, especially on the part of the Korean Government, as it makes money from Kobaco. It uses the tax to promote worthwhile causes and to put on events. That said, the Government is pro-business, but it will take time to change the status quo.” “There have been discussions for years on this subject with plans to change Kobaco’s monopoly on broadcast media ad sales first officially announced more than 10 years ago. The many unrealised announcements have taught me not to hold my breath. But this time it does look more likely to proceed as lots of forces are combining together and people are looking to do whatever they can to stimulate sales.” “This is a perennial question that is asked by all foreign advertising networks when they start doing business in Korea, but change seems inevitable in many ways. Pricing and distribution may be handed over to the major broadcasting companies, but with a large exodus of Kobaco personnel; the other possibility is a diminished role of Kobaco as a guidelines setter. This compromise would be typical of the market, and would allow you to ignore the Kobaco guidelines to some extent while preventing gross abuses of the situation.” “The president has an agenda for privatisation, but there would be no benefit in [the move] at this time. I think that the market will determine the future of Kobaco. As media moves towards digital TV, Kobaco will become less important. As Kobaco doesn’t govern cable or digital, it will lose its power.”
Source:
Campaign Asia

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