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Big corporations with total asset of less than W10 trillion will be able to jump into competition to set up Internet Protocol TV channels under a draft enforcement decree on the IPTV law passed in a Cabinet meeting Tuesday (US$1=W1,018). The decree sets the standard at W10 trillion in total assets to render large corporations eligible to set up IPTV cable news and general television channels. YTN and mbn are examples of cable new and general television channels can air virtually everything from news and soap operas to sports matches.
Park No-ik, an official from the conversion policy bureau of the Korea Communications Commission, said companies will have to pass a rigorous screening process. According to Fair Trade Commission figures, LS Dongbu, Daelim, Hyundai, Daewoo Shipbuilding and Marine Engineering, KCC and Hyosung are among the conglomerates eligible to set up an IPTV channel. The CJ Group, which owns many popular cable channels such as tvN, Channel CGV and Mnet, has more than W10 trillion in assets at the moment but is likely to become eligible from next year as it decided to sell shares in CJ Investment and Securities.
Many say that it will not be easy for large firms to set up news or general television channels. The television advertising market has contracted, and there are fears that big business will try to exert too much influence over the media. The general television channel is an especially tempting option since it could be as comprehensive as a terrestrial network, but since it will require at least W100 billion of capital to start, many large firms will hesitate.
Meanwhile, the government decided to put no limit on eligibility for IPTV service providers. Therefore, KT, which has W27 trillion of total assets, Hanaro Telecom and LG Telecom are planning to start IPTV provider services from the second half of this year.
(englishnews@chosun.com )
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