Discussions on establishing a dedicated T-commerce (data home shopping) channel for small businesses, a long-standing goal of the industry and a campaign promise of President Lee Jae-myung, are expected to gain momentum in the second half of this year. The Korea Communications Commission (KCC), which holds the authority to approve the project, has secured the necessary quorum, prompting a hearing focused on Public Home Shopping and Home & Shopping, where rigorous questioning is anticipated.
According to relevant ministries and the home shopping industry on July 23, the KCC plans to hold a hearing at the end of next month regarding the approval requests for T-commerce channels from Public Home Shopping and Home & Shopping. This hearing, following a preliminary review by the KCC, will serve as a platform to rigorously assess the companies' staffing for broadcasting, the status of their transmission equipment, and their plans for securing initial capital.
In February, as part of a government reorganization plan, the responsibility for establishing the small business T-commerce channel was transferred from the Ministry of Science and ICT to the KCC. With the KCC now having the necessary quorum, discussions that had stalled regarding the establishment of T-commerce channels are reigniting. The industry views the approval of T-commerce as a critical first test of the management capabilities and policy implementation of the newly appointed leaders of Public Home Shopping and Home & Shopping, Lee Il-yong and Kwon Jin-mi, respectively.
T-commerce, a blend of television and commerce, allows viewers to order products directly using their remote controls while watching TV. Unlike live broadcasts, recorded shows can continuously display and sell products, providing a significant opportunity for small businesses to expand their market reach.
This service is particularly seen as effective for small and micro businesses. A survey conducted from November 10 last year to January 28 this year among 856 small businesses engaged with TV home shopping and T-commerce revealed that 36.3% expressed willingness to use T-commerce channels if introduced.
The persistent demand from the small business sector for the establishment of T-commerce channels stems from the inequality faced against large home shopping companies. Currently, there are ten T-commerce operators in South Korea, including Hyundai Home Shopping, Lotte Home Shopping, CJ OnStyle, GS Shop, NS Home Shopping, KT Shopping, Shopping N, SK Stoa, W Shopping, and Shinsegae Shopping. In contrast, Public Home Shopping and Home & Shopping, which emphasize expanding market access for small business products, rely solely on one live TV channel, limiting their growth potential.
A representative from the small business sector stated, "To provide practical market access for small businesses struggling with inflation and domestic demand stagnation, the establishment of T-commerce channels is urgent. We hope the upcoming hearing will be the first step toward meaningful institutional improvement."
* This article has been translated by AI.
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