It has been argued that the current home shopping regulations weaken the growth foundation of small businesses and medium enterprises.
Professor Jo Chun-han of the Gyeonggi Science and Technology University noted at the seminar 'Policy Directions for Expanding Market Access for Small Businesses and Medium Enterprises,' held on the 3rd by the Small Business Association, that 'the purchasing rate through smartphones has been steadily increasing, which diminishes the role of TV shopping, yet due to the regulatory structure, the home shopping industry bears an excessive burden.'
TV home shopping sales stagnated at around 5 trillion won last year after reaching 5.8 trillion won in 2020. The proportion of broadcasting sales dropped from 56.5% in 2019 to 47.4% in 2024. In contrast, the live commerce market is expected to grow from about 3 trillion won in 2023 to 24 trillion won within five years.
Professor Jo cited the irrationality of the re-authorization system, the structure centered on quantitative regulations, and the burden of transmission fees as structural problems.
He said, 'TV home shopping operators must receive government re-authorization regularly, yet the conditions differ by operator, which reduces the consistency of review standards,' adding that 'differentials based on starting points create an uneven playing field.' He emphasized the need for equitable standards across the industry.
The method of home shopping regulation has also risen as an issue. The current regulations focus on quantitative and formal obligations such as the ratio of small business product programming and fixed fee ratios. While there is an obligation to program a certain percentage of small business products, it has not resulted in actual sales growth or enhanced competitiveness.
Professor Jo pointed out that 'home shopping companies are paying 1.9375 trillion won in transmission fees to pay-TV platform operators as of 2023,' and noted that 'this is an 87% increase compared to 2014, leading to reduced investment capacity and weakened ability to discover small business products.'
He added, 'The current home shopping regulations focus solely on quantitative criteria such as programming ratios and fees, failing to contribute to the substantial sales growth or enhanced competitiveness of small businesses,' and emphasized that 'regional-based commerce needs to shift to T-commerce, which sells 100% local products or small business products, beyond merely being a sales channel.'
T-commerce is a term that combines television and commerce, allowing viewers to check product information and purchase directly using the remote while watching TV.
He also stated, 'We need to rationalize the fee structure and alleviate the dependent structure of platforms to reduce the burden on small businesses,' and added, 'A distribution ecosystem should be created where small business owners, medium enterprises, and consumers can all share benefits, leading to balanced industrial development.'