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Starting next spring,... a clause in the Korea-U.S. free trade deal will kick in... that will
allow American firms to own program providers in Korea.
As some industry insiders have raised concerns... that Korea's broadcasting industry will suffer
as a result,... the government is already preparing.
Our Laah Hyun-kyung reports. Korea is bracing for an era of heated market competition in
its broadcasting industry. Come next year,... American media groups will
be allowed to own program providers, or 'PPs' in Korea under the Korea-U.S. free trade pact
ratified in 2012. PPs are those that create content... or have
acquired the right to broadcast taped television and radio programs -- for example, terrestrial
broadcast stations or cable channels. And to better cope with the upcoming change,
officials from the ICT ministry and the Korea Communications Commission... put their heads
together with industry experts to consider possible negative effects.
"In order to keep a competitive edge in the rapidly changing environment and competition
in the global market, the government came up with a comprehensive plan aimed at improving
the nation's broadcasting industry last December. This plan will be fleshed out and finalized
by the end of April."
Insiders say American media groups have been visiting Korea since late last year to conduct
market research and evaluate its potential. But experts in Seoul say U.S. companies making
a foray into the domestic market... will not likely have an immediate impact in the industry.
"The effects will not be visible in the short run, but because the U.S. dominates the world's
content market, we do need a long-term plan. It could work for the better and serve as
an opportunity for our contents to set foot into the American market."
"Officials say the profit structure for the PPs should also be modified so that they can
focus more on producing creative content rather than relying on commercials.
Laah Hyun-kyung, Arirang News."