The cable TV industry has filed a lawsuit against the Korea Communications Agency (KCA) to cancel the imposition of contributions to the Broadcast Communications Development Fund.
The Korea Cable Television Association (KCTA) announced on October 8 during a press conference at the Seoul Garden Hotel in Mapo, Seoul, that a comprehensive cable broadcasting operator (SO) has filed a lawsuit with the Seoul Administrative Court to annul the 2026 contribution assessment.
Shin Ho-cheol, KCTA's policy director, stated, "The lawsuit was just filed. The reason for this lawsuit is that the collection rate for the Broadcast Development Fund has remained unchanged at 1.5% since it was set in 2017, despite the fact that it has been over eight years."
The cable industry has long argued for a reduction in the collection rate, citing deteriorating profitability as the industry environment has changed. Shin noted, "Since 2017, SO operating profits have plummeted, dropping to 45.1 billion won last year, and the decline in profitability and financial conditions has not been reflected in the Broadcast Development Fund at all."
The lawsuit raises issues related to Article 12 of the Broadcast Communications Development Act, which states that the government must establish and implement plans to promote broadcast communications content, including support for production and improvements in distribution structures.
It also cites grounds such as failure to exercise discretion, violation of the principle of proportionality, and violation of the principle of equality. The Broadcasting Media Communications Commission (BMCC) did not adequately exercise its discretion regarding revenue size when establishing the collection rate, and the government continues to apply the same assessment criteria despite changes in the market conditions for SOs and Internet Protocol Television (IPTV).
Additionally, it is claimed that the criteria for reductions for local and terrestrial broadcasters were not properly reflected during the transfer of broadcasting and media businesses to the BMCC.
Shin emphasized, "Despite operating and investing in local channels from a public service perspective, there has been no reflection of this in the fund. We seek to determine through this lawsuit whether the contributions received by the industry are lawful."
* This article has been translated by AI.
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