# Korean Link : AJu News
In today’s rapidly evolving broadcasting and telecommunications landscape, there’s a growing need to reform the Broadcasting and Telecommunications Development Fund system. Two key issues have emerged: the burden on cable TV operators (SOs) and fairness concerns regarding new players like online video services (OTTs). However, the solution isn’t simply expanding the levy base – we need fundamental systemic improvements.
Historically, SOs provided public services like operating local channels in exchange for regional monopoly rights. Despite losing this monopoly status in today’s competitive environment, they continue to fulfill these public responsibilities.
Ideally, the government or the public should foot the bill for public services. Instead, SOs face a double whammy: bearing the cost of providing these services while also contributing to the Broadcasting and Communications Development Fund. This hinders fair competition and strains SO operations.
Some argue that extending the fund to new operators like OTTs could address this imbalance. While this seems logical, implementing it presents significant challenges. OTTs can operate across borders, complicating the application of national laws and raising collection issues. We should be cautious about applying existing broadcast-centric regulations to OTTs, as it might stifle innovation in these new technology-driven service models.
Instead of expanding the levy scope, we should focus on improving the fund’s efficiency and supporting regional development. Here’s how:
1. Enhance transparency and efficiency in fund management. Currently, some funds go to organizations like Arirang TV and the Media Arbitration Council, which aren’t closely aligned with the fund’s purpose. This contradicts the beneficiary-pays principle and undermines the fund’s original intent. We need to strictly limit fund usage and cut unnecessary spending.
2. Support SOs and other operators providing public services. We should consider deducting the costs of public responsibilities (like running local channels) from fund contributions or establish a separate support system. This approach ensures fair compensation for public services.
3. Improve overall funding system efficiency. We should seriously consider merging this fund with the ICT Promotion Fund, as recommended by the Ministry of Trade, Industry and Energy. This could reduce administrative costs and create synergies in fund management.
4. Rethink how the fund operates. While it currently focuses on supporting broadcast content production, we should expand its scope to include innovative investments that strengthen SO localization and revitalize regional economies. For example, the fund could help SOs develop customized media services tailored to local needs or build digital marketing platforms in partnership with local small businesses. It could also support innovative technology investments that strengthen communities, such as media literacy training programs or locally-based social media platforms. This approach would help SOs evolve from mere broadcasters into key players in regional development.
5. Strengthen performance evaluation. Instead of simply distributing funds, we need a system to objectively measure and evaluate the effectiveness of supported projects. This will allow us to continually improve fund management by expanding support for successful initiatives and scaling back or eliminating ineffective ones.
As the broadcasting and telecommunications landscape evolves, so too must the Development Fund system. The key to this evolution isn’t expanding the levy base, but improving system efficiency and supporting regional development. By ensuring fair compensation for public services, transparent fund management, and support for innovative regional investments, we can promote healthy industry growth while revitalizing local economies.
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