The crisis of cable system operators (SO) is not an issue of individual operators but a structural crisis caused by a policy vacuum. As a solution, we urge the government and industry to jointly form a "cable TV sustainability policy task force."
Hwang Hee-man, head of the Korea Cable TV Assosiation, held a press briefing on the 10th in Cheongjin-dong, Jongno-gu, Seoul, and said, "Within a three-month window, the government must present a concrete policy direction and a roadmap for institutional improvements." He called for an outline policy plan that includes: △ a shift in the regulatory paradigm △ securing the sustainability of pay TV △ home shopping carriage fees (a reasonable pricing standard at a level that can balance resources for content compensation).
At the event, officials from the Korea Cable TV Assosiation and representatives, policy staff, and public relations staff of cable system operators (SO) took part together. They demanded a comprehensive redesign of key systems across the board, including the structure for calculating home shopping and content compensation, the Broadcasting Development Fund system, regional channel obligations, and tailored regulations for regional operators.
What cable system operators (SO) describe as a policy vacuum refers to regulations that prevent them from freely offering flexible products while they must compete with online video services (OTT), and to the Broadcasting Development Fund, for which the home shopping sector pays based on operating profit while system operators (SO) pay based on revenue. System operators (SO) particularly stressed that, in the case of content compensation calculation, discussions have continued since 2021 and it is no longer feasible to rely solely on industry consensus, making the establishment of government standards one of the most urgent tasks.
Under the current Broadcasting Development Fund system, 1.5% of broadcast business revenue is collected across the board. However, according to the Korea Cable TV Assosiation, as of 2024, cable TV SOs have operating margins in the 0% range, resulting in a structural inversion in which some operators' operating profits do not even cover their fund payments. While terrestrial broadcasters benefit from a fund reduction system due to their public role, cable TV SOs, which perform public-interest roles on a similar level, argue that even loss-making operators must shoulder the full rate.
In addition, cable system operators (SO) say that, as licensed operators, they perform public duties comparable to terrestrial broadcasters, such as operating regional channels and airing disaster and election coverage, but the structure persists in which only obligations are imposed without any legal status as regional broadcasters or a financial support system.
Cable system operators (SO) warned that if the government does not begin institutional improvements by forming a policy task force, they will have no choice but to implement a full deferral of Broadcasting Development Fund payments and a full review of mandatory regional channel operations.
Chair Hwang said, "Cable TV remains a public platform used by more than 12 million households nationwide," adding, "If this industry collapses, the foundation of regional information, disaster response, and regional democracy could all be weakened," and urged, "The government must take seriously that the exit of the platform will inevitably lead to the disappearance of the entities paying for content compensation and the collapse of the pay TV content ecosystem." Hwang added, "If the government does not present a policy direction, the industry will have no choice but to pursue self-rescue measures for survival," and said, "What is needed now is not indifference but a responsible policy decision."