The National Assembly's audit of the Ministry of Culture, Sports and Tourism will commence on October 7. On the first day, Park Jin-young, co-chair of the Presidential Committee on Cultural Exchange, along with key figures from Tving, Naver, Ridi, CJ CGV, and Netflix, will testify. Issues surrounding the government's K-Culture initiatives and the broader content industry, including OTT, web novels, and films, are expected to be discussed.
According to the National Assembly, the Culture, Sports and Tourism Committee held a plenary meeting on September 29, where it approved the attendance of 15 general witnesses and 17 expert witnesses. This year, representatives from content and platform companies have been included to address unfair practices and structural issues that have emerged during the rapid growth of K-Culture.
A key point of interest will be Park Jin-young's appearance. He has expressed a desire to clarify the controversy surrounding the Phenomenon project, a global K-Culture initiative led by the committee. The main issue involves the controversy over trademark rights, as it was revealed that JYP Entertainment, which Park leads, applied for the trademark rights of a government project before private companies, raising concerns about conflicts of interest.
Lawmakers are expected to scrutinize the circumstances surrounding the monopoly of trademark rights by private companies and the appropriateness of these rights. The Ministry of Culture has stated that the trademark application was a proactive measure for overseas trademark acquisition and that the rights will be transferred to a dedicated corporation in the future.
Leaders from platform and content companies will also face questions. Choi Joo-hee, CEO of Tving, will be questioned regarding measures taken in response to a major data breach and user protection strategies. Kim Kwang-hyun, Naver's Chief Data and Content Officer, is expected to address the operation and reform of portal news.
Structural issues in the novel, film, and OTT industries will also be examined. Baek Gi-sik, CEO of Ridi, will testify about unfair contract practices with web novel authors and potential infringements on creators' rights during the IP expansion process. Jeong Jong-min, CEO of CJ CGV, has been called to testify regarding the industry's structure surrounding film investment, distribution, and exhibition, particularly in light of the ongoing crisis in the theater industry. With declining audiences and reduced investment, there is concern about finding solutions for the survival of theaters and the production and distribution sectors. The issue of ticket scalping in cinemas will also be addressed.
In the OTT sector, creator compensation will be a focal point. A representative from Netflix is included in the witness list to discuss the so-called fair compensation issue. Discussions have been ongoing regarding additional compensation for creators, including writers, directors, and actors, when their works are repeatedly used on OTT platforms and distributed overseas. The audit is expected to cover the establishment of a compensation system.
There will also be rigorous scrutiny of key policies from the Ministry of Culture. The actual execution rate of the 'Youth Cultural Arts Pass,' which is set to expand its support targets, as well as issues related to matching funds from local governments and the effectiveness of the policy, will be closely examined. Additionally, there will be calls for effective enforcement against ongoing ticket scalping in performances and sports, as well as the development of additional measures following the implementation of revised laws.
* This article has been translated by AI.
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