Despite Worsening Profitability, Levy Rate Unchanged... Cable TV Operators Sue to Overturn Fund Assessment

Fund contribution rate remains at 1.5% for over 8 years
"Intensifying market competition and worsening profitability not taken into account"

Thirteen cable TV system operators (SOs) filed a lawsuit against the Korea Communications Agency (KCA), seeking to overturn the assessment of their contributions to the Broadcasting and Communications Development Fund.

At a press briefing held on October 8 at the Seoul Garden Hotel in Mapo-gu, Seoul, Shin Hocheol, policy chief of the Korea Cable Television Association, said, "We have repeatedly urged the government to lower the fund's contribution rate, but our requests have never been reflected. We filed the lawsuit to obtain a legal ruling on whether the assessed contribution amounts are lawful."

The contribution rate applied to SOs is 1.5% and has remained unchanged since 2017. The industry argued that changes in market conditions, including a decline in subscribers and worsening profitability, had not been adequately reflected in determining the rate.

The association noted that, under the Enforcement Decree of the Framework Act on Broadcasting and Communications Development, contribution rates must be determined by comprehensively considering factors such as the public nature of operations, competition in the broadcasting market, and operators' revenue and financial conditions. It said the rate should reflect the public role of cable TV's operation of local channels, intensifying competition among media platforms, and worsening profitability among SOs.

The association cited the failure to exercise discretionary authority and violations of the principles of proportionality and equality as key issues. The association said that the same rate had been applied despite changes in market conditions, and that no separate reduction criteria had been established for SOs, unlike for other broadcasters operating on a regional basis. It also added that, as the Broadcasting Media and Communications Commission is conducting related research, it hopes the system will be revised around August 2027 based on the findings.

This content was produced with the assistance of AI translation services.