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Title KCC draws up legislative amendment to Broadcasting Act regarding sponsors
Date 2019-06-28 Read 45003
On June 19, the Korea Communications Commission (KCC, Chairman Lee Hyo-seong) announced an amendment to the Broadcasting Act regarding sponsors in broadcasting in order to strengthen the public interest and transparency of sponsors. The amendment includes preparing the legal evidence for sponsors, required announcement of sponsors to protect viewers, and storage and submission of related material regarding sponsors.

The current version of the Broadcasting Act only includes the “definition of announcement of sponsors” (Article 2-22) and “extent of announcement of sponsors (Article 74-1). The detailed standards and methods for the announcement of sponsors is left to the ”Enforcement Decree of the Broadcasting Act“ and the Korea Communications Commission’s regulations, and there is no rule specific to sponsors themselves.

There were issues of transparency under the current framework. For example there was no way of determining if a broadcasting business operator received an unlawful sponsorship unless the operator made an announcement of sponsors. Furthermore, announcement of sponsors was optional for operators, so some broadcast programs would not reveal their sponsors as they introduced health products, and the same products were sold at the same time slot on home shopping programs. This type of activity undermines a viewer’s ability to make the right decision.

The KCC included the following measures in the amendment:
- prepare the legal evidence for the definition and extent of sponsors
- require announcement of sponsors in the case where a program introduces the effects of a product sold by the sponsor
- prohibit unfair practices such as “gift certificate pay”
- require storage and submission of materials related to sponsors

Moving forward, the KCC plans to publicize related lawmaking activities, collect opinions from stakeholders, and undergo review by the Legislative Office to submit the final amendment to the Broadcasting Act to the National Assembly.

Chairman Lee commented, “these improvements to the rules on sponsors are the first in nearly twenty years since the announcement of sponsors rule was introduced in 2000. We hope the amendment will not only strengthen the public interest and transparency of sponsors and protect consumers, but also promote sponsors as a source of sound financing for production.
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