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    COLUMN

    The Meaning of the G20

    Seoul Summit 2010

    COVER STORY

    Korean Media Overview

    General Trends in the Korean Press in 2010

    Overview of Korean Broadcasting

    Landscape of New Media Industry in Korea

    A History of Koreas Media

    Korean Media List

    RESEARCH ARTICLES

    Tendentiousness of Korean Journalismand the Problem of the Distinction between

    Facts and Opinions

    A Study on Press Arbitration System in South Korea :Focusing on its Functions of Conflict Resolution

    and Reinforcing the Role of Mediation

    ISSN 1976-1686

    Volume. 42010 no.2

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    [ Column _The Meaning of the G20 Seoul Summit 2010 ]- Bae In-joon

    [ Cover Story_ Korean Media Overview ]

    General Trends in the Korean Press in 2010

    - Shim Jae-chul

    Overview of Korean Broadcasting

    - Yoon Suk-nyoon

    Landscape of New Media Industry in Korea

    - Hwang Yong-suk

    A History of Koreas Media

    - Chong Chin-Sok

    Korean Media List

    [ Research Articles ]

    Tendentiousness of Korean Journalism and the Problem of

    the Distinction between Facts and Opinions

    - Rhee June-woong

    A Study on Press Arbitration System in South Korea

    : Focusing on its Functions of Conflict Resolution and Reinforcing the Role of Mediation

    - Kim Yung-wook

    [ Reports ]

    Comparison Analysis of News Coverage Attitudes

    of Domestic and Foreign Media toward the Korean Economy

    - Ban Hyun

    Latest Key Issues surrounding North Korea

    - Chang, Dong-woo

    Korea-EU Journalist Seminar

    - Jung Eun-joo

    14

    8

    20

    27

    43

    52

    71

    98

    128

    135

    Volume. 42010. no.2

    contents

    3

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    2 Korea Journalism Review

    COLUMN

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    3Volume. 4 2010 no.2

    COLUMN

    The Meaning of theG20 Seoul Summit 2010

    Bae In-joonExecutive Editor, The Dong-A Ilbo

    Existing international groups the G7 and its expanded version, the G8 (with Russia

    as a new member) tried to tackle global issues such as the nancial crisis, but quickly faced

    serious limitations. The G20 summit was created in 2008 largely because the United Statesand other industrialized nations finally acknowledged the drastically changed reality. The

    bankruptcy of U.S. investment bank Lehman Brothers on September 15, 2008 sent an un-

    precedented shock throughout the economic and nancial sectors across the globe, prompt-

    ing the formation of the G20 summit.

    The rst four G20 summits were held in G7 countries: the United States, Britain and

    Canada. The rst meeting took place in Washington D.C. of the United States in November

    2008, right after the global financial crisis broke out. The second conference was held in

    London, Britain, while the third and fourth took place in Pittsburgh, in the United States,

    and Toronto, Canada.South Korea is one of the 12 emerging economies that were included in the Group

    of 20. Koreas hosting of the G20 summit in November 2010 is a striking symbol that the

    emerging economies are no longer playing second fiddle. The Seoul G20 Summit is now

    expected to highlight that the group embraces not only the G7 and the EU but also the 12

    emerging economies.

    Before the G20 summit was rst held in 2008, some members of the G7 claimed that

    20 member nations for the group is too many, expressing their intention to exclude Korea

    and other countries. But elitism and exclusivism are anachronistic, and much less helpful for

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    5Volume. 4 2010 no.2

    North Korean people to crushing poverty and starvation.

    In contrast, South Korea has pulled off industrialization and democratization on the

    principles of free democracy, market economy and free trade. This success is a rare miracle,

    and almost unheard of among the countries that had formerly been colonized by imperialist

    nations. About a century ago, the Western people described Korea as a nation of no hope.

    But South Korea overcame the Japanese colonial period, the division into two nations, pov-

    erty and the destruction of the Korean War to become a nation of prosperity and wealth.

    South Korea is now a model country for many developing countries which want to pull

    themselves out of poverty.

    Many foreigners are aware of the modern history concerning Korea. The Madrid Club,

    a group of former government heads and administrative chiefs, held a meeting in Seoul on

    September 1-2, 2010, and adopted a statement saying that Koreas experience in economic

    growth will be a useful reference for developing nations which plan to map out their devel-

    opment strategy.

    Koreans take pride in the rapid economic growth dubbed the Miracle of the Han

    River, as well as in the countrys time-honored spiritual and cultural heritage. Under the

    nations founding myth, Korea was founded 4,300 years ago by Dangun. And during the Jo-

    seon Dynasty, which preceded modern Korea, King Sejong invented Hangul, a unique writ-

    ing system, in 1446. Hangul is a scientic, expressive and beautiful writing system. The Jo-

    seon Dynasty also exhibited a high level of science and technology around the 15th century,

    which is a historical fact often cited by Koreans as a proud achievement. From ancient times,

    Koreans have valued courtesy, academic endeavor and spiritual culture. Nobel prize winnerand Indian poet Rabindranath Tagore called Korea the Lamp of the East, and China re-

    ferred to Korea as the Courteous Country of the East. After all, Korea and Koreans did

    not spring out of barbarity into civilization overnight.

    The Korean Peninsula, with its rich history of civilization and culture, has two political

    systems: One in the South is prospering, and the other in the North is stuck in abnormality.

    The main reason is their different political systems. If North Korea gives up on its outdated

    communism and hereditary monarchy, and integrates into South Koreas liberal democracy,

    the Korean Peninsula will once again serve as a region contributing to the peace and pros-

    perity of the world. I sincerely hope presidents and top policymakers attending the SeoulG20 Summit have a deeper understanding of Korea and the Korean Peninsula.

    Nothing is more important than hosting the Seoul G20 Summit successfully. As host,

    Korea should exercise its leadership and coordination skills in setting the agenda for the

    members. Deputy nance ministers and deputy governors of central governments got to-

    gether in Seoul on September 4-5 to check out the key agenda for the G20 summit in No-

    vember. At that meeting, participants discussed the G20 framework for a sustainable and

    balanced growth and possible ways to reform the international nancial institutions and set

    up a nancial safety net. The topics will be reviewed and elaborated further at the G20 Fi-

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    6 Korea Journalism Review

    COLUMN

    nance Ministers and Central Bank Governors Meeting to be held October 22-23. And the

    topics are likely to be utilized for the Seoul G20 Summit, slated for November 11-12. The

    nal agendas are expected to be nalized within October.

    Pascal Lamy, director-general of the World Trade Organization, visited South Korea in

    early September to discuss the Seoul G20 Summit agenda. WTO is scheduled to report the

    progress of the Doha Development Agenda (DDA) to top policymakers at the summit.

    G20 summits are primarily used as a venue for discussing pending economic challenges,

    but the scope of discussion is now expanding into politics and security issues. The Seoul

    G20 Summit, I hope, will contribute to promoting peace in Northeast Asia and the Korean

    Peninsula. For the summit meeting to become a key vehicle for exploring global agendas,

    not only the economy but also other issues such as politics and security should be discussed

    at the meeting. Furthermore, a new proposal about the future of the G20 summit should be

    made so that it can move forward on a fresh impetus after the Seoul meeting.

    However, it remains unclear whether the G20 summit can produce a consensus about

    issues that require international cooperation in the aftermath of the latest nancial crisis. If

    the G20 summit continues, the participating countries should feel the need for it together

    while taking steps not to sideline other non-member countries. The combined economic

    power of the G20 members accounts for more than 85 percent of the global GDP, but the

    number of countries outside the G20 but included in the United Nations is 172. Korea,

    which hosts the forthcoming G20 summit, should make efforts to reect the positions of

    other developing and poverty-stricken nations as a country that is in a transition from a de-

    veloping nation into an advanced one.Equally important is consensus-building about the agendas at the summit. As the 20

    member nations have different views due to the complicated conict of interest, an agree-

    ment requires a fairly high level of diplomacy of the hosting country.

    If a Seoul Initiative or Seoul Agenda is to be announced after the participants work out

    all the obstacles and take productive measures, the summit will be surely deemed an initial

    success. A Seoul Initiative or Seoul Agenda would set a new milestone for the global econ-

    omy, Koreas national status and brand value will also get a signicant boost. For Korea, the

    summit will provide a great opportunity to change Korea Discount, a negative image linked

    to the security factor of North Korea, into Korea Premium. Therefore, Korea is in no po-sition to forgo this make-or-break chance.

    Some of the various topics to be discussed at the summit could use Koreas unique

    experience. For instance, the stake repositioning in the International Monetary Fund is a

    tricky issue that involves the conict of interest among the participating countries, but Ko-

    rea might be able to suggest a compromise that meets the demands of both the advanced

    and developing nations. Setting up a nancial safety net is also an issue that can incorporate

    Koreas experience in overcoming the 1997 nancial crisis in a short period of time. Koreas

    success story can be fodder for inspiration when it comes to the economic development

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    7Volume. 4 2010 no.2

    of developing and other poverty-stricken nations. Korea is the one and only country in the

    world which has shifted from a country receiving aid to a country offering aid. In this re-

    gard, Korea will be able to provide a model of self-reliance instead of a simple aid model

    without hurting the pride of other developing countries.

    Another essential element for the success of the Seoul G20 Summit is to ensure secu-

    rity. There are many international conferences marred by illegal rallies or cyber-terrorism.

    The third World Trade Organization ministerial meeting held in Seattle is remembered as an

    infamous event, as it was seriously undermined by a large group of demonstrators. The G8

    summit was held in Genoa, Italy, in 2001, but the meeting suffered seriously as more than

    150,000 anti-globalization demonstrators staged strong protest rallies. The 2003 World Trade

    Organization ministerial meeting was also canceled as a Korean farmer and activist commit-

    ted suicide in protest of the opening of the farming industry.

    It is feared that anti-globalization activists are likely to stage illegal rallies at the Seoul

    G20 Summit in November. Illegal and violent demonstrations could derail Koreas efforts to

    upgrade its international status and national brand image. In a worst-case scenario, such neg-

    ative development could hurt the countrys overall image. The Korean government should

    take every measure against illegal demonstrators and cyber terrorists by working closely with

    the immigration department and related authorities. Close cooperation with other countries

    to prevent terrorism is also in order.

    In consideration of the risk factors, the Seoul G20 Summit is no blessing. A closer look

    at the details of the event shows that the summit meeting is a burden and obligation at a

    national level. Although the summit does not require investment in new stadiums like theOlympics and World Cup nals, Korea could lose a lot if the event turns out to be a failure.

    But we do not need to worry too much. I strongly believe that Korea will focus its national

    resources effectively and pull off a successful hosting of the summit.

    I recommend that heads of state and rst ladies of the G20, as well as other partici-

    pants enjoy the beautiful autumn of Korea and visit a number of places where the countrys

    time-honored tradition and culture are well preserved. I also recommend traditional Korean

    cuisine, which will certainly provide an once-in-a-lifetime experience to the G20 participants.

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    9Volume. 4 2010 no.2

    became democratized after the Peoples

    Power of 1987, the National Assembly has

    amended the media law several times and

    attempted to tear down the wall that had

    blocked many media groups from entering

    the television industry. Finally, the Grand

    National Party has proposed a new law to

    allow more competition in the media indus-

    try in 2009, and the current Lee Myung-bak

    Administration implemented a new media

    policy to support Korean media groups to

    have global competitive advantage.

    After Korean mass media were merged

    and consolidated pursuant to the Basic Press

    Law, only 25 daily newspapers remained in

    South Korea in the 1980s. Among them, six

    newspaper companies were located in the

    Seoul metropolitan area and they were dis-

    tributed nationwide. Their circulation size

    was about 700,000 copies each.

    Approximately 30 years later, more than

    100 dailies are published across the countryin South Korea. The so-called Big Three

    newspapers, including the Dong-A, Chosun,

    andJoongAng dailies, claim to publish over

    two million copy each daily. Nevertheless,

    the total household subscription rate of the

    Korean newspapers has dropped almost

    half over the last 10 years. More than 10

    dailies around the Seoul metropolitan area

    are currently circulated nationwide while thenewspaper circulation has decreased across

    the nation. Seven economic and financial

    dailies are published in South Korea, indi-

    cating that economic and business newspa-

    pers are ourishing in the country, especially

    through and after the Asian nancial crisis

    of 1997.

    For the last 30 years, the Korean press has

    been democratized, while the competition

    in the newspaper industry for survival has

    become keen and severe. They are attempt-

    ing to overcome this sort of prot-declining

    crisis and adjust to the new media environ-

    ment in the open and capitalistic society.

    The Korean press has certainly entered the

    multi-media era in which media convergence

    has been technologically feasible.

    This article will review and highlight cur-

    rent issues and recent developments of the

    Korean press in 2010.

    1. Act for Guarantee of Freedom

    and Functions of Newspapers

    (the new Law on Newspapers)

    After the amended Law on Newspapers was

    passed by the National Assembly in June

    2010, license guidelines for selecting new

    comprehensive-program and all-news Cable-TV channels have been prepared through

    debates in various public forums. On Sep-

    tember 17 of this year, the Korea Com-

    munications Commission (KCC) approved

    the basic plan for the selection guidelines of

    cross-media ownership. Detailed guidelines

    for selecting comprehensive programming

    and all-news Cable-TV channels will be

    finalized following November this year. Ifthe guidelines are smoothly implemented

    and the interested stakeholders and media

    groups accept those guidelines, the KCC

    will choose a number of newspaper com-

    panies and grant them licenses to launch

    comprehensive programming and all-news

    digital TV channels. Further, the new Law

    on Newspapers has abolished the ban that

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    10 Korea Journalism Review

    Cover Story : Korean Media Overview

    prevents the cross ownership of newspaper,

    news wire and broadcasting companies in

    terms of share and stake purchase.

    However, there have been various spec-

    ulations that the government does not

    have a strong volition to implement this

    law and thus will not make a final deci-

    sion on the final winners of the license.

    As a matter of fact, there has been a delay

    even in implementing the new media law.

    The KCC has been slow in this process

    of selecting the possible beneciaries of

    business licenses.It is widely known that such ve major

    newspaper companies as Dong-A Ilbo,

    Chosunilbo, JoongAng Ilbo, Maeil Business

    Newspaper and Korea Economic Dailywill

    apply for the licenses. The KCC appears

    to be straddling the fence, most likely be-

    cause the government needs to deal with

    those newspapers appropriately.

    These newspaper groups have wagedaggressive campaigns to win the licenses

    for the sake of their survival in the media

    market. Because of this keen competi-

    tion, the KCC seemed to have decided to

    employ the approach of absolute evalu-

    ation, which means that every candidate

    who meets the requirements can qualify

    for the license for cross-media ownership.

    By this logic, it is also possible that theKorea Communications Committee may

    not grant joint ownership to any news-

    paper companies by arguing that they are

    not able to meet the absolute guidelines.

    The following question is thus left to be

    resolved: what are the criteria for the ab-

    solute evaluation guidelines?

    The policy objective for granting the

    joint-ownership license to newspapers

    companies for the comprehensive pro-

    gramming channels has been to promote

    the content industry in order to make the

    Korea media group globally competitive

    and to help the society more free and

    open to the diverse opinions in the public

    sphere. It remains to be seen whether the

    KCC will achieve these police objectives

    by allowing the newspaper companies to

    start comprehensive-program digital TV

    stations.

    2. The New Requirement of the

    Audit Bureau of Circulations

    Verification for Government

    Advertising in Newspapers and

    Magazines

    The Audit Bureau of Circulations (ABC) of

    South Korea is a circulation-auditing organi-zation. It audits circulation, readership, and

    audience information for newspapers, mag-

    azines, and other publications publicized by

    its members. The ABC provides credible,

    verified information critical to the media

    buying and selling process by conducting

    independent, third-party audits of print

    circulation, readership and Website traffic

    activity.Historically, Korean newspaper companies

    have not participated in the ABC verifica-

    tion of their readership size. Accordingly,

    there was no way of exactly knowing about

    how many copies they print each day and

    what percentage of them are paid-circula-

    tion.

    The Lee Myung-bak Administration an-

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    11Volume. 4 2010 no.2

    nounced last year that newspaper companies

    must become members of the ABC and

    report their circulation size to the ABC in

    order to secure government advertising in

    their publications.

    This directive issued by the Prime Minis-

    ter on October 6, 2009 became effective in

    January 2010. Due to this new requirement,

    newspaper companies have joined the ABC

    verication of their circulation size. In 2009,

    among 238 members only six newspapers

    including the JoongBu Maeil, Jeonbuk Ilbo,

    Nongmin Shinmun, Metro,AM7and joined

    the verification process. Further, 23 maga-

    zine companies also joined the verification

    process last year.

    This figure has increased significantly

    to 208 newspapers this year. In 2010, the

    number of newspapers which have joined

    the ABC verication includes 97 dailies and

    111 weeklies. Among them, 33 newspapers

    including economic and business dailies aredistributed nationwide and 58 dailies are

    distributed in the local and regional commu-

    nity. Six dailies have been distributed free of

    charge in the Seoul metropolitan area.

    Yet there have been unresolved issues

    regarding the ABC new standards of paid

    subscriptions. The ABCs new amendment

    denes paid-newspapers as those subscrip-

    tions requiring 50% of the monthly priceof subscription. Previously, if the paid sub-

    scriptions were 80% of the monthly price,

    then they were recognized as paid-newspa-

    pers. The ABC argued that the new rate of

    paid subscription must be lowered since the

    general public tends to read the newspapers

    based on bargain prices due to the aggres-

    sive marketing of newspaper companies.

    Local sellers of newspapers also operate

    independently from the newspaper compa-

    nies and they offer discount prices for new

    subscriptions.

    3. The Recovery of Newspaper

    Readership and Advertising

    Revenue

    Amid sweeping structural changes within

    the print media industry, the overall media

    environment has grown unfavorable to the

    off-line newspaper sector. The rapid rise of

    other media outlets such as the internet and

    mobile phone has reduced the profit mar-

    gins of the print media. In order to survive,

    this nearly antiquated medium must com-

    pete with new media to secure the media

    users attention and advertising revenues.

    A biannual survey in 2008 by the Korea

    Press Foundation revealed that only 36.8%of Korean households subscribed to newspa-

    pers, evidencing a continuous drop. The Ko-

    rean households newspaper subscription was

    69.3% in 1996, just one year before the Asian

    nancial crisis. Since then, this rate has been

    continuously dropped to 36.8% in 2008.

    This years subscription has not yet been

    compiled by the Foundation.

    As the statistics indicate in Table 1, how-ever, the rate dropped continuously from

    69.3% in 1996 to 52.9% in 2002 and to 40%

    in 2006. In particular, subscription rates for

    the younger generation have declined sig-

    nicantly; only 25% of readers in their 20s

    and 29% of those in their 30s subscribe to

    newspapers these days.

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    12 Korea Journalism Review

    Cover Story : Korean Media Overview

    Table 1 : The Decline of Newspaper Subscriptions in South Korea

    Year 1996 1998 2000 2002 2004 2006 2008

    Subscription Rate (%) 69.3 64.5 59.8 52.9 48.3 40.0 36.8

    *Source: Korea Press Foundation

    The newspaper industry is facing a deep-

    ening crisis at the sales level as well. In

    2009, advertising revenues for newspapers

    dropped by 9.5% to 1.50 trillion Korean

    won from the year before. In 2008, advertis-

    ing revenues was 1.66 trillion won, indicat-

    ing a 6.9% drop from 1.78 trillion won in

    2007. The advertising figure of 2010 has

    not been reported yet.

    Nevertheless, the Korean economy is

    recovering rapidly from the recent global

    recession in 2008 and followed by increased

    advertising revenues for newspapers. One

    of the surprises in the Korean newspaper

    industry is the fact that none of the major

    dailies have gone bankrupt thus far, although

    the nation went through several times of sig-nicant economic troubles. More to it, cable

    TV networks and online media experienced

    a noticeable growth in their advertising rev-

    enues while the world suffered from the Wall

    Street-led economic downturn.

    4. Law on Supporting the

    Development of LocalNewspapers

    This special law effective for limited time

    has supported the local newspapers, which

    would have gone down if they had not re-

    ceived outside aids. The National Assembly

    extended the effectiveness of this law until

    the end of 2016. Since this law was tempo-

    rary, it would have terminated on June 10,

    2010 if there were no extension. Locality

    is one of the important characteristics in

    the diversity of news and public opinions.

    This law aims to provide local newspapers

    with financial relief through various indi-

    rect measures including upgrades of gate-

    keeping and news production. It also offers

    local journalists an opportunity to improve

    their professionalism through educational

    programs, as much as help them to adjust to

    the new technological media environment.

    Meanwhile, the members of the Committee

    for the Development of Local Newspapers

    have completed their second terms, and the

    new members will handle the third term of

    the Committee.

    5. Korean newspapers

    development of the Online News

    Applications for Smart Phones

    The Korea Online Newspaper Association

    (KONA) began providing its own portal

    news to smart phones and has made its ap-plication available to the Galaxy S smart

    phones since May 28, 2010.

    The Galaxy S, a new mobile product from

    Samsung Electronics, has competed with

    the Apples iPhone. As a kind of old media,

    Korean newspapers admit that they have

    been losing their battle with portal news

    sites powerlessly for the last 10 years.

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    13Volume. 4 2010 no.2

    When the new smart phone was intro-

    duced to the market, they became vigilant

    and paid special attention to the new media

    development. In keeping this point in mind,

    the KONA has developed the news applica-

    tion for smart phones called On News and

    made it pre-installed in the basic application

    menu of the Galaxy S.

    The KONA members are the dot.com

    companies of the following off-line newspa-

    pers: The Kyunghyang Daily News, Kukmin

    Daily Newspaper, Dong-A Ilbo, Maeil Busi-

    ness Newspaper, Seoul Shinmun, Segye Times,

    Chosunilbo, JoongAng Ilbo , Electronic Times,

    Hankook Ilbo, Hankyoreh, and Korea Eco-

    nomic Daily.These dot.com companies have

    not been successful in competing with news

    portal companies such as Daum, Google,

    Naver, and Yahoo. These daily newspapers

    are attempting to charge small fees for the

    users of the On News application. Never-

    theless, it is not certain whether this busi-ness model of On News will be successful

    in the smart phone market.

    CONCLUSION AND

    SUGGESTIONS

    The year of 2010 has been special to the

    Korean people. It has been one hundredyears since Japan colonized Chosun, the

    Yi dynasty of Korea. This year is also the

    sixtieth anniversary of the outbreak of the

    Korean War in 1950. As noted in the intro-

    duction of this article, 30 years have passed

    since the new military government passed

    the Basic Press Law and set up the barriers

    separating the media industry sectors from

    each other. Since then, both Korean daily

    newspapers and broadcasting companies

    have grown tremendously, in tune with the

    fast development of the Korean economy

    for the last 30 years.

    During this 30-year period, the Republic

    of Korea has experienced two periods of

    economic downturn. The rst was the Asian

    nancial crisis in 1997; the second, the Wall

    Street-led global recession in 2008. South

    Korea has been successfully overcoming

    these economic hardships. Meanwhile, the

    Korean newspaper industry has stagnated

    and its profit margin dropped significantly.

    Its business loss will be larger than any oth-

    er sector of the Korean economy. Never-

    theless, there appear to be positive signs that

    Korean newspaper industry is recoveringwith higher advertising revenues and getting

    ready to ght back in the new media envi-

    ronment. As the barriers are abolished in

    Korean media industry, Korean newspapers

    will find new avenues for advancements.

    They hope to flourish again by adjusting

    to the new media environment. Thus, right

    now, many stakeholders are vigilantly watch-

    ing the nal result of the battle for obtain-ing the joint ownership license of the com-

    prehensive programming digital channels.

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    14 Korea Journalism Review

    Cover Story : Korean Media Overview

    Overview of Korean Broadcasting

    Yoon Suk-nyoon

    1. Current Korean Broadcasting

    Environment

    The Korean broadcast ing indust ry has

    confronted new challenges after the new

    government was launched in 2008. The new

    government established the Korean Com-

    munications Commission (KCC) to regulate

    the both broadcasting and telecommunica-tion fields, after simultaneously abolish-

    ing the Korean Broadcasting Commission

    (KBC) and the Ministry of Information and

    Communication.

    The new government initiated the reorga-

    nization of the government agency respon-

    sible for broadcasting and communications

    policies and regulations, recognizing the fact

    that the boundary between the broadcast-ing and communications sector had been

    blurred. The KCC allowed newspaper busi-

    nesses can own broadcasting companies,

    and also opened the broadcasting industry

    to the conglomerates and foreign enter-

    prises to strengthen the global competitive-

    ness of Korean broadcasting industry. The

    Korean National Assembly amended the

    broadcasting and newspaper act in July 2009

    to allow new capital and businesses to en-

    ter the broadcasting industry. The Korean

    broadcasting industry has become a very

    competitive market after the amendment of

    the regulation.

    In 2008 and 2009, the Korean broadcast-

    ing industry suffered from the global eco-

    nomic crisis and its revenues and profitsdecreased sharply. Many broadcasting com-

    panies recorded losses.

    The Korean broadcasting industry pro-

    vides various services including terrestrial

    broadcasting. Each broadcasting sector has

    secured enough subscribers and they strive

    to achieve more penetration by providing

    good quality contents.

    1) Terrestrial Broadcasting

    The Korean television broadcasting sys-

    tem has maintained multiple public broad-

    casting companies and one private company

    since 1987. There are 24 public television

    Yoon Suk-nyoon

    [email protected]

    professor, Department of Mass communication, Gwangju University

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    15Volume. 4 2010 no.2

    stations, including KBS, MBC, EBS and

    local networks. In the private sector, there

    are 15 local TV stations including SBS, and

    many specialized broadcasting stations in-

    cluding religious and transportation stations.

    The total revenue of the Korean terrestrial

    broadcasting stations was $2.85 billion in

    2009. Its total number of employees was

    about 13,800.

    Korean Broadcasting System (KBS),

    wh ich is Koreas representative public

    broadcasting system, received the call sign

    HLKA from ITU in 1947 after liberation

    from Japan. KBS has been growing since its

    conversion to the public broadcasting sys-

    tem in 1973. Now KBS operates 2 terrestrial

    TV channels and 1 satellite TV channel, and

    7 radio channels. It also operates 4 terres-

    trial DMB channels. The revenues from this

    in 2009 were $1.15 billion, and the number

    related employees is about 5,200. KBS also

    owns and operates 18 local networks, and5 cable program providers. The president

    of KBS is selected from the 11 committee

    members whom are appointed by the Na-

    tional Assembly. The terms of the president

    and committee members are 3 years. Anoth-

    er public broadcasting system for education

    is EBS (Korea Educational Broadcasting

    System). In 2009, EBS operated 1 terrestrial

    TV channel and 2 satellite TV channels and1 radio channel. EBS also operates 1 terres-

    trial DMB channel.

    MBC (Munhwa Broadcasting Corpora-

    tion) is a different type of public broadcast-

    ing station. As of 2009, MBC operates 1

    terrestrial TV channel and 3 radio channels.

    MBC also operates 2 terrestrial DMB chan-

    nels and 1 satellite DMB channel. The rev-

    enues in 2009 totaled $560 million. If MBC

    includes its 19 local networks revenues, the

    revenues increased to $860 million. The

    number of employees is about 3,100 includ-

    ing local networks. MBC also owns and

    operates 5 cable program providers and 4

    subsidiary companies. The president is ap-

    pointed by 9 committee members whom

    are selected by the National Assembly.

    The terms of the president and committee

    members are 3 years, the same as KBS.

    SBS (Seoul Broadcasting System) is a

    private terrestrial broadcasting system and

    2010 is its 20thanniversary year. As of 2009,

    SBS operates one terrestrial TV channel

    and one radio channel, and also has 9 local

    networks. The revenues in 2009 were $480

    million. The number of employees is about

    850. SBS also owns and operates 6 cable

    program providers and 8 subsidiary compa-

    nies. The biggest shareholder is SBS Hold-

    ings.The other broadcaster is iTV/FM, an

    independent private network covering

    Incheon and Gyeonggi Province.

    The terrestrial broadcasting systems

    broadcast 19 hours per day on weekdays,

    and 20 hours per day on weekends. The

    viewer shares of the all terrestrial broadcast

    programs total 56%, and this percentage are

    decreasing every year. Because of the rapiddevelopments of paid broadcasting services,

    terrestrial broadcasting systems position

    is threatened. The terrestrial broadcasting

    companies are trying to finish the transfer

    to digital broadcasting by December 2012.

    2) Cable Broadcasting

    Cable television services started in 1995.

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    Cable broadcasting is provided to 15 million

    homes in 2009 in Korea. The penetration is

    not competitive with any other broadcasting

    service sector. The number of digital cable

    subscribers reached 3 million in early 2010.

    In the early period of cable broadcasting

    the businesses struggled to gain subscribers

    because of the competition from the relay

    operators (RO). However, after the lifting

    the regulations in 1999, the number of sub-

    scribers has increased explosively over the

    last 10 years. The lifting of the regulations

    allowed the vertical integration of system

    operators (SO) and program providers (PP),

    and also allowed horizontal integration be-

    tween PPs and MPPs (multiple program

    providers). MPPs and MSOs are integrated

    to MSPs to control the cable industry. CJ

    Media is an example of a huge MSP in the

    cable industry.

    Five to six MSOs control the cable indus-

    try including T-Broad, which owns morethan 20 SOs. There are 103 SOs and over

    200 PPs in Korea. Cable System Opera-

    tors (SO) are divided into 77 areas and they

    provide triple-play services (TPS): broad-

    casting, Internet, and VoIP services. Cable

    SOs compete ercely with IPTV to provide

    bundled service discounts. Digital cable

    service enlarges their paid service fields to

    VOD and data broadcasting, too.The SO and PPs total revenues in 2009

    exceeded the revenues of terrestrial broad-

    casting companies. The revenues showed

    the high status of the cable companies in

    Koreas contemporary broadcasting indus-

    try. The size of the cable industry is ap-

    proximately $2.93 billion. If home shopping

    channels revenues are included, the cable

    industry revenues increased to $4.4 billion

    in 2009. The number of employees in SO

    is about 5,300, PP is approximately 5,800,

    and home shopping channels is about 3,300.

    The total program share of the cable chan-

    nels have increased every year, and are set to

    exceed the shares of the terrestrial broad-

    casting channels in near future. Superstar

    K2, the latest popular program from the

    Mnet cable channel, garnered a viewer share

    of 14% in September 2010. This was a new

    record in cable channel history, and is one

    example of the popularity of cable chan-

    nels.

    3) Satellite Broadcasting

    Satellite broadcasting service started in

    Korea in 2002 with a single consortium.

    They had struggled to attract subscribers

    in the early days because of the insufcient

    participation of the terrestrial broadcasting

    channels and program providers. However,they provided digital broadcasting services

    and the service became known to every-

    body, and they gained many subscribers.

    Since 2006 they have gained more than 2

    million subscribers, and the satellite broad-

    casting system has spread to people who

    live in island and mountain areas. In many

    of those areas, cable and terrestrial broad-

    casting services are not available becauseof the geographical barriers. There are 2.5

    million satellite broadcasting subscribers

    as of March 2010. The revenues in 2009

    were $340 million, and they have enjoyed

    a surplus every year since 2006. With this

    level of subscribers and revenues they can

    survive in the paid broadcasting industry.

    They have increased the number of HD

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    channels since 2008, and will provide 72

    HD channels by the end of 2010. They

    have VOD and data broadcasting services,

    too. The growth of digital cable penetration

    in rural areas is slow, and satellite broadcast-

    ing targets a niche market by providing HD

    channels in rural areas. They also provide

    a 3D-only channel too. By providing these

    differentiated services they enhance their

    image in Koreas paid broadcasting market.

    4) Digital Multimedia Broadcasting

    SK Telecom and a Japanese joint venture

    company launched satellite DMB (Digital

    Multimedia Broadcasting) service in May

    2005. Satellite DMB is a type of mobile

    broadcasting service which is broadcast to

    mobile devices such as mobile phones, car

    navigation systems, and PMPs. Paid sub-

    scribers can receive one premium channel,

    25 video channels and 16 audio channels.

    Even though they have secured more than2 million paid subscribers they have still

    struggled with large decits.

    Regular terrestrial DMB services were

    launched in the Metropolitan area in De-

    cember 2005. The existing terrestrial

    broadcasting companies (KBS, MBC, SBS)

    provide 3 channels and the remaining 3

    channels were assigned to the new entrants.

    The broadcasting areas are divided into 6local areas, and 3 terrestrial broadcasting

    companies can provide DMB services in

    each area except Seoul and its surrounding

    area. Since then, the service has expanded

    rapidly based on being free of charge and

    the provision of handsets bundled with

    mobile communications services, reaching

    21,553,000 in cumulative sales by the second

    quarter of 2009. There are no subscription

    fees with terrestrial DMB. Revenue sources

    come from commercials only. With this

    profit structure all terrestrial DMB service

    providers have recorded a loss every year

    since launching the service. The commercial

    revenues have not met the DMB service

    companies expectations.

    The KCC has prepared various regulatory

    plans, such as a transition to paid services

    and DMB 2.0. However, such attempts have

    not worked so far. The possibility of prot

    does not seem high enough compared to

    the prevalence of DMB devices.

    5) IPTV

    With the enforcement of the IPTV Busi-

    ness Act by the National Assembly in April

    2008, a systematic basis for the commer-

    cialization of IPTV was established. Subse-

    quently, in November 2008, the era of IPTV

    began as KT transmitted real time broad-casting through IPTV for the first time in

    Korea. SK Broadband and LG Dacom also

    started to provide real-time IPTV services

    in January 2009.

    The average number of IPTV channels is

    84 as of 2009, and IPTV operators provide

    various specialized channels such as educa-

    tion, health, tourism and military channels.

    With the entering of the big 3 telecom-munication companies to the broadcasting

    industry the existing paid broadcasting com-

    panies can confront extreme competition

    with IPTVs.

    Both cable and IPTV companies compete

    to provide various bundled services, such as

    triple play services.

    The number of Korean households that

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    subscribe to IPTV exceeded 2.4 million as

    of September 2010, including VOD based

    IPTV subscribers. The fact that the number

    of subscribers surpassed 2 million meant

    that IPTV has settled down quickly as a new

    platform, and the convergence of broad-

    casting and communication brought some

    results in real terms.

    6) Internet and Smartphone Service

    Koreas high speed Internet service is

    known as the best in the world. There were

    more than 16 million high-speed Internet

    subscribers as of 2009. The high speed In-

    ternet penetration percentage is 85%. Even

    the number of high speed mobile Internet

    (WiBro) subscribers exceeded 310,000.

    Lately mobile Internet service areas (WiFi

    Zones) have been expanded to provide the

    people with mobile Internet services. KT

    and SK Telecom increase the mobile Inter-

    net service area with fast speed.With the introduction of the iPhone at

    the end of 2009 the smartphone industry

    has exploded, with an expected 6 million

    subscribers in less than a year. This figure

    means that 15% of all mobile phone sub-

    scribers are smartphone users. Thousands

    of smartphone applications have been de-

    veloped in the domestic smartphone market.

    And many experts expect the smartphonewill dominate the mobile phone industry in

    the near future.

    2. The Future of Korean

    Broadcasting Industry

    The Korean broadcasting industry con-

    fronted a new environment in 2009. The

    terrestrial broadcasting companies cannot

    maintain their dominant positions. Instead,

    other paid broadcasting sectors have en-

    larged their power in the industry, including

    cable TV, satellite TV, and IPTV. Countless

    broadcasting platforms and multi-channels

    have emerged with rapid development of

    broadcasting technology. However, the ad-

    vertisement revenues for the broadcasting

    industry have not grown to level expected

    by the industry. The Korean National As-

    sembly passed media related acts in July

    2009 that could shake the all sectors of

    Korean broadcasting. Newspaper compa-

    nies can now own broadcasting companies,

    which was strictly prohibited before. Korean

    broadcasting markets are even open to the

    conglomerates and foreign capital, and ver-

    tical and horizontal integration is possible

    after the new broadcasting acts.

    In 2010 the broadcasting industry in Ko-rea is experiencing a continued reshuffle

    in various sectors. For example, telecom-

    munications companies, conglomerates,

    newspaper companies, and foreign capital

    can enter the broadcasting industry. M&As

    between media companies, the introduction

    of media-reps to the advertising sector, and

    the advent of general PP channels and news

    PP channels will accelerate the change ofKoreas broadcasting industry in 2010. The

    existing terrestrial broadcasting companies

    and new companies will enter extreme com-

    petition for viewers and subscribers.

    Exports of Korean broadcasting pro-

    grams have shrunk since 2007. The exports

    revenue of Korean contents have stopped

    at $100 million. The related departments

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    expect a repetition of the Korean Wave, but

    a regain of the popularity of Korean broad-

    casting contents overseas does not seem

    easy with the slump in domestic broadcast-

    ing industries. With this in mind the KCC

    and Ministry of Culture, Sports and Tour-

    ism are preparing various plans to support

    the broadcasting, gaming, animation, movie

    and K-POP industries gain global competi-

    tive power.

    Many broadcasting advertising regula-

    tions have been alleviated to strengthen

    the competitive power in the broadcasting

    contents industry. Indirect advertisements

    such as PPL and virtual advertisements are

    allowed in broadcasting programs. The ad-

    vent of new media reps will secure sources

    of revenue to make good quality broadcast-

    ing programs. Domestic and foreign capital

    can bring big media conglomerates into the

    broadcasting market. Financial support from

    domestic and foreign countries can make

    creating high-quality programs possible, and

    these programs will be globally competitive.

    Korean broadcasting companies are ex-

    pected to become global competitive power

    by producing high-quality content. Appro-

    priate broadcasting regulations and policies

    should be prepared at the proper time to

    make this goal possible. Broadcasting should

    not be dependent solely on the marketplace

    or private sectors to guarantee the diversity

    of public opinion and public interests. The

    Korean broadcasting industry should try

    to provide diverse broadcasting services to

    audiences, and related government depart-

    ments should also make the regulations and

    policies to assure fair competition between

    broadcasting service providers.

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    20 Korea Journalism Review

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    Landscape of New MediaIndustry in Korea

    Hwang Yong-suk

    1. The Competition and Growth

    of New Media Industry

    Korea is described as a state-of-the-art

    country in terms of its Information Com-

    munication Technology (ICT) and rapid

    introduction of advanced communication

    technologies (See International Telecom-munication Union (ITU), 2009 & Korea

    Information Society Development Institute

    (KISDI), 2010). The convergence of broad-

    casting and communication has enabled a

    variety of digital media platforms and ap-

    plications to be distributed more easily in

    Korea. The convergence has also increased

    competition within the existing media and

    communications industry, and formedcombinations of consumer use patterns dif-

    ferent from those found in the traditional

    media and communications environment.

    Coupled with the governments policy

    support, the convergent media industry is

    becoming the driving force of Korean eco-

    nomic growth. Broadcasting and telecom-

    munication sectors contributed 10.4 percent

    to GDP in 2009, up from 9.2 percent in

    2006 (Korea Communications Commission

    (KCC), 2010, p. 6).

    1) Industrial Development of

    Emerging New Media Technologies

    While broadcasting and communication

    have been integrated into the convergentmedia and caused the traditional broad-

    casting service market to slow, the market

    for new media including IPTV (Internet

    Protocol TV), DMB (Digital Multimedia

    Broadcasting), and WiBro (Wireless Broad-

    band) has emerged. For instance, the wire-

    less market increased up to 6.5 percent of

    the annual average rate between 2005 and

    2009 (KCC, 2010, p. 7). As competition notonly between traditional media and emerg-

    ing new media platforms and applications

    but also across these new media platforms

    and applications occupies a prominent place

    Hwang Yong-suk

    [email protected]

    Associate professor, Department of Mass communication,

    Konkuk University

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    21Volume. 4 2010 no.2

    in the history of digital era in Korea, atten-

    tion should be paid to the current develop-

    ment of new media technologies for market

    share.

    IPTV

    IPTV combines Internet networks with

    broadcasting content, enabling users not

    only to watch real-time and time-shifted

    broadcasting programs but also to enjoy

    data, audio, text, and graphics on IP broad-

    band networks (KISDI, 2010). In 2007, the

    penetration rate of Pre-IPTV service was

    only 2.8 percent and placed seventh among

    the top 21 countries (KISDI, p. 58). As

    of December 2009, the number of IPTV

    subscriptions reached 1.74 million (KISDI,

    2010). The Korea Communications Com-

    mission (KCC), a regulatory body for broad-

    casting and telecommunications, actively

    supported a variety of content provided via

    IPTV, such as information-oriented chan-nels providing live educational TV shows,

    and programs about defense, agriculture

    and sheries, public health, and tourism, to

    help secure a larger subscriber base (KCC,

    2010, p. iii).

    DMB

    Digital Multimedia Broadcasting (DMB)

    service publicly used in two types of ter-restrial DMB (T-DMB) and satellite DMB

    (S-DMB) allows transmission of real-

    time broadcasting and video-on-demand

    programming by providing users with mul-

    timedia content through portable terminals.

    As of June 2009, the distribution rate of

    T-DMB devices was about 20 million, and

    reached 40 percent of the population, while

    the rate of S-DMB devices was about 2 mil-

    lion (Lee et al., 2010). The KCC also sup-

    ported a wider and better coverage of DMBreception as well as the advancement of

    next-generation DMB technologies (KCC,

    2010).

    2) Competition with Existing Media

    There is a tendency for IPTV to be char-

    acterized as the substitute for cable TV,

    while DMB tends to be portrayed as the

    alternative to mobile phones. Despite thelack of a fully established communication

    network, IPTV and DMB, which transmit

    multimedia content, have the potential to

    prevail over existing media in the near fu-

    ture. Cable TV, with an 86 percent penetra-

    tion rate in households, now overshadows

    IPTV due to subscriber base, broadcast-

    ing stability, and channel competitiveness

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    (KISDI, 2010, p. 75). Nonetheless, the cable

    TV industry is operated by relatively small

    companies and faces stiff competition from

    IPTV operators. The major telecommunica-

    tion companies Korea Telecom (KT), SK

    Broadband, and LGU+ all provide IPTV

    services.

    Meanwhile, although the mobile tele-

    phone market is saturated, indicating a 98.5

    percent subscription rate, mobile communi-

    cations services are increasing the amount

    of data they bring to customers through the

    introduction of a wide range of tariffs and

    pricing schemes in order to keep customers

    loyal to the network (KISDI, 2010). Be-

    cause of these actions, both types of DMB

    service would compete not only with each

    other but also with mobile telephony for a

    share of the market. The DMB industry is,

    therefore, applying alternative revenue mod-

    els, such as promotion of advertising effects

    and interactive services, to counter its rev-enue shortfall (KISDI, 2010).

    3) Current Trends and Prospects

    In its attempt to accelerate the technologi-

    cal integration of broadcasting with tele-

    communications, the new media industry

    will work to create an appropriate revenue

    model and will look to gain revenues from

    web-based 2.0 app licat ions, convergedbroadcasting and communications media

    such as IPTV and DMB, and a wide range

    of content creation.

    Because these services noticeably fall be-

    hind existing media services such as cable

    TV and mobile phone services, they cannot

    help but consider differentiated prot meth-

    ods such as bundled package services, add-

    on services, and search link services. For

    example, the diffusion of DMB devices was

    successful in terms of sales and the amount

    of investment in infrastructure, but rev-

    enues from programming and advertising

    are still low. As another example, IPTV op-

    erators succeeded in gaining content from

    major terrestrial broadcasting networks

    KBS, MBC and SBS which had expressed

    different positions on the direction of IPTV

    development from the selected telecom-

    munication companies. Despite securing the

    content, IPTV still has difculty in supply-

    ing it because content providers are under

    pressure from cable TV and major terres-

    trial broadcasting networks.

    From the aspect of building infrastruc-

    ture, the saturated market of traditional

    broadcasting and telecommunications, in-

    cluding the mature household broadband

    connection rate, may force broadcasting and

    telecommunications companies to pioneer anew market for new media services (e.g., IP

    TV 2.0, defined as a mobile version of IP

    TV) and invest a great amount of money in

    renovating the infrastructure (e.g., the ultra

    broadband convergence network, UBcN).

    From the aspect of subscriber base and

    diverse content creation, Hwang and Yang

    (2009) expect that the increasing penetration

    of IPTV would enhance users consump-tion patterns based on the segmentation of

    content by genre. This is also relevant to

    DMB. Although consumers attitude toward

    IPTV and DMB services, which are unfa-

    miliar, may be one of the factors slowing

    the diffusion, subscription rates of both

    services are expected to increase this year

    (KISDI, 2010).

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    4) Outlook of New Media Policy

    A key reason to adopt a new media policy

    is that the convergence of broadcasting and

    telecommunications contributes to national

    economic growth.

    Accordingly, the new media policy has

    been driven by nurturing the intensive eco-

    nomic environment to induce competition

    among all the networks providers, service

    providers, and content providers and accel-

    erating the digital transition on a ubiquitous

    basis in order to compete for the global

    dominance. The Korean government and

    KCCs initiative for such growth gives an

    impetus to the modification of laws and

    regulations associated with new media,

    policy making for new media business, and

    infrastructure investment for nationwide

    coverage.

    As part of efforts to generate great mo-

    mentum, the KCC suggested a plan for

    establishing UBcN, which allows usersto transfer data at 1 gigabyte per second on

    the xed line network and at 10 megabytes

    per second on the wireless network (Kim,

    2009).

    The key reason to build up UBcN is to

    reinforce the massive IP network that inte-

    grates the extensive broadband and mobile

    networks, which is only 7 percent of the IP-

    based fixed-line telephony network (Kim,2009). Another example is that KCC took

    the lead in modifying laws associated with

    new media such as amendment of the In-

    ternet Multimedia Broadcasting Business

    Act to support IP TV service, the media

    reform law, and the amendment of the law

    for press arbitration to reorganize the web

    market of the news industry.

    2. Issues and Regulations of

    Online News Media

    Although online news media led the power

    shift in the industry when it hit the market,

    changes to regulations and policy making of

    the new media industry will also have an im-

    pact on the news media industry as a whole.

    As newspaper readership declined, news-

    paper publishers continuously complained

    about the news aggregation services pro-

    vided by Internet portals and search engines

    such as DAUM, NAVER, and Yahoo Ko-

    rea. Issues of online news media have been

    raised mainly in relation to the exclusive dis-

    tribution that Internet portals enjoy through

    the news aggregation service and the resul-

    tant news market concentration of Internet

    portals and their editorial rights over news

    stories posted on their websites.

    1) The Growing Role of InternetPortals

    Reading news online has become one of

    the major activities to Internet users, and

    Internet portals and search engines have be-

    come the main channel of news consump-

    tion. According to a survey conducted by

    Korea Internet and Security Agency (KISA)

    (2009), getting information and data (89.7%)

    is the most common task among online ac-tivities. The survey results also revealed that

    34.7 percent of participants over 12 years

    old go online for details about information

    acquired from television, newspaper, or ra-

    dio, and that this percentage accounts for

    the highest use rate of participants other

    multimedia usage on the Internet (KISA,

    2009).

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    Internet users considered TV (92.3%) as

    the most important information channel,

    followed by the Internet (89.8%), while

    non-users of the Internet considered TV

    (98.9%) as the main information channel,

    followed by interpersonal channels such

    as family, friends, and co-workers (94.8%)

    (KISA, 2009). In parallel with such usual use

    patterns of news- and information-seeking

    behavior, news and information provided

    by online media and Internet portals have

    increased. As of 2009, the number of web

    publishers and online media ofcially regis-

    tered with the local government amounted

    to 1399 more than three times as many

    registrations as in 2006 (Hwang & Yang, p.

    11). The quantitative expansion of online

    media and the change of news consumption

    patterns to online media rather than newspa-

    pers have given online media and portals an

    important role.

    2) Issues and Problems of Online

    Journalism

    The increasing role of Internet portals

    and search engines in distributing news

    stories has brought about a dispute over

    whether online news companies should be

    operated under the umbrella of the media

    reform law. The prolonged debate around a

    revenue model and prot-sharing policy be-tween Internet portals and traditional print

    media mirrors the fierce rivalry between

    Google and the print media in the USA.

    Behind the debate, the two rivals held

    different positions on the issues of online

    journalism and its legal restrictions. Portals

    and search engines argued that they did not

    create news stories, just published them

    from corporate partners.

    Accordingly, they protested that the im-

    plementation of the same legal sanctions as

    other news outlets is likely to make unrea-

    sonable demands of their services as con-

    tent providers. They also maintained that

    they would make it possible to enforce a

    self-regulation system. Print media pointed

    to Internet portals and search engines as the

    main contributors to their sharp decreases

    in revenue and numbers of subscriptions.

    Furthermore, changes to the external in-

    dustrial environment have forced newspa-

    per publishers to switch to new business

    methods and practices, such as investing a

    large amount of money in upgrading online

    versions of their own websites. Newspaper

    publishers pointed out several problems

    that arise from portals and search engines

    carrying news stories: 1) overexposure of

    news stories from specic news sources, 2)

    editorial rights over news stories, 3) unbal-anced composition and choice of news

    stories carried on the main page or the news

    front page of portals in question, and 4)

    using sensational headlines to get attention

    (Hwang & Yang, 2009, p. 129).

    Despite prolonged arguing from the dif-

    ferent positions, regulatory policy associ-

    ated with portals and online news outlets

    has been legitimatized through the mediareform law and amendment of law for press

    arbitration.

    The underlying principle of the regula-

    tory policy is an increasing demand on the

    portals public responsibility for social out-

    comes and consequences. But these legal re-

    strictions are likely to regulate Internet por-

    tals more strongly by imbuing Internet news

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    25Volume. 4 2010 no.2

    services with the role of the press. These

    legal restrictions also reect the shift of the

    legal mechanism to a more open environ-

    ment of news and information distribution

    from the closed one that was in favor of

    Internet portals. Moreover, from the market

    viewpoint of the news industry, the web

    market is considered an arena for conicting

    interests, between newspapers as news pro-

    viders and Internet portals as information-

    mediated providers.

    3) Regulatory Policy and Legal

    Sanctions Associated with Internet

    Portals

    Under the media reform law, which passed

    through the national assembly in Septem-

    ber 2009, web-based online news outlets

    including Internet portals are held to the

    same legal restrictions as print media and

    broadcasting companies. Online news media

    are able to strengthen journalistic integrityby adhering to stricter editorial standards

    and ethical codes of conduct. Consistent

    with the new media policy, the legal restric-

    tions are also likely to contribute to raising

    the competitive environment for news and

    information in the web market arena, with

    portals market concentration reduced.

    However, the application of stronger

    legal sanctions to Internet portals and notto print media could be problematic. For

    example, some provisions include such

    stricter sanctions on Internet portals as 1)

    being accountable for the arrangement of

    news stories and being open to the stan-

    dards used in making the arrangement, 2)

    agreeing to revise a news story if the news

    source indicates it needs to be revised, and

    3) making an obvious distinction between

    posted comments and news stories (Hwang

    & Yang, pp. 147-8). Consequently, it may be

    unfair to force Internet portals to adhere to

    these compulsory provisions on top of the

    terms they already adhere to in the condi-

    tional contracts they make with corporate

    partners.

    In addition, under the amendment of the

    law on press arbitration, which was passed

    in February 2009, web-based news outlets

    assume the same legal and public respon-

    sibilities as offline news outlets if disputes

    arise because of news stories posted on

    their websites. This law is based on the iden-

    tication of news reports of news produc-

    ers and news distribution of information-

    mediated providers. Under this law, victims

    damaged by a specific news story can re-

    quest a correction as well as a right of reply.

    In conclusion, because of the officially

    authorized changes, information-mediatedproviders are regulated under the legal

    framework as traditional media are. The le-

    gal applications confer on Internet portals

    the role of the press the enhancement

    of social responsibility due to dramatically

    increased readership, the editorial control

    over news stories posted on their websites,

    and the function of agenda-setting and

    its influence on public opinion formation(Hwang & Yang, pp.129-131). However, the

    uniform application of the law, regardless

    of whether Internet portals serve as content

    providers, may greatly undermine the au-

    tonomy of service providers.

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    27Volume. 4 2010 no.2

    A History of Koreas Media:Fighting Against Japanese Colonialismand Then for Democracy and Freedom

    Chong Chin-sok

    1. Port Opening and Emergence

    of Newspapers

    Until the mid-19th century, Korea was the

    least known and visited country for the

    West (G.N. Curzon, Problems of the Far East,1894). With the number of Westerners visit-

    ing Korea increasing prior to and follow-

    ing its port opening in 1876, many books

    informing Westerners of Korea were pub-

    lished. Korea, nonetheless, was a forbidden

    land (Ernest Oppert, 1880) and a hermit

    nation (W.E. Griffis, 1882).

    Books written by Westerners described

    Korea as a country falling behind the civi-lized world and alienated from the interna-

    tional stage. American astronomer Percival

    Lowells portrayal of Korea as the land of

    morning calm (Chosun, The Land of Morn-

    ing Calm, 1885), has settled down as the

    most friendly idiom symbolizing Korea.

    The Morning Calm, an English missionary

    journal the Anglican Church published and

    distributed to many countries from July

    1890 to October 1939, played the role of a

    public relations ambassador on behalf of

    Korea. The adoption of the land of morn-

    ing calm as the catchphrase of the poster

    publicizing the 1988 Seoul Olympics origi-nated from Lowells book and the Anglican

    Church journal.

    Major world events attracting global atten-

    tion to Korea were the Sino-Japanese War

    (1894) and the Russo-Japanese War (1904).

    In the wars waged by their neighboring

    powers, the Koreans were pitiful victims,

    unable to act as the master of the Korean

    Peninsula. The Western press in generalmerely described detachedly the sights of

    the oppressed people being trodden under

    the hooves of foreign cavalry.

    Newspapers acted as a window through

    Chong Chin-sok

    [email protected]

    Emeritus Professor, Journalism & Communications,

    Hankuk University of Foreign studies

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    28 Korea Journalism Review

    Cover Story : Korean Media Overview

    which the people of the hermit kingdom

    could look at the world. They also per-

    formed the role of a textbook teaching the

    public the cultures, political systems and

    social phenomena of advanced countries.

    Inaugurating the Office of Culture and

    Information (Bakmunguk), the Chosun

    government inaugurated the Hanseong Sunbo

    (Hanseong is one of the old names of

    Seoul and Sunbo means a paper published

    on every 10th day) on October 31, 1883,

    the first-ever newspaper of Korea. As the

    Orient observed the lunar calendar dividing

    a month into three parts - the early, middle

    and last parts, the paper was published every

    ten days.

    Koreas first newspaper came into being

    when the country began to open itself un-

    der pressures from world powers. Beginning

    with the conclusion of a friendship treaty

    with Japan in 1876, Korea concluded similar

    treaties with a number of Western countries,namely with the United States in 1882, Brit-

    ain in 1883, Germany also in 1883, Russia in

    1884 and France in 1886. Japan and Western

    powers scrambled for concessions in Korea,

    which lacked experience in negotiating with

    foreign countries.

    Newspapers began to root themselves in

    a tense situation in which the fate of the

    country was at risk. They started with thedual missions of enlightening the public by

    positively accommodating advanced coun-

    tries cultures and ideas on the one hand,

    and safeguarding the nations tradition and

    independence against foreign aggression on

    the other. In the West, newspapers gradually

    developed over a long period of time after

    starting with the mission of conveying in-

    formation needed for daily lives. Undergo-

    ing the process of forming public opinions

    and increasing political inuence, they were

    able to maintain the format of joint-stock

    companies, in which they could manage

    themselves independently on readership

    fees and advertising revenues. But the pri-

    mary function of Korean newspapers was

    to reform society by helping awaken the

    public and offering them knowledge. They

    had little perception of making ends meet

    in management.

    2. Hanseong Sunbo and

    Hanseong Weekly Published

    by Government

    In its inaugural issue, the Hanseong Sunbo

    declared that its mission would be to report

    the land area, the size of the population,

    the racial or ethnic makeup, the scale ofarmament, as well as the history, literature,

    culture and all other aspects, of every nation

    on earth with the aim of promoting the

    wellbeing of our people and safeguarding

    our national sovereignty for a long time to

    come.

    Following about a year-long publication,

    the newspaper had to suspend its issuance

    in December 1884 when the Ofce of Cul-ture and Information, where it was printed,

    was burnt down in the coup detat of 1884.

    The government launched the Hanseong

    Weekly, an improved format, in February

    1884, however. The weeklys publication was

    suspended in July 1888 due to nancial dif-

    culties. The nations rst newspaper made a

    remarkable achievement by conveying wide-

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    29Volume. 4 2010 no.2

    ranging news on foreign culture, history,

    politics, geography and economy as well as

    introducing scholarly attainments overseas.

    But the governments budget shortage and

    the small size of its readership forced it to

    close down.

    The social and economic conditions were

    not mature enough to ensure the indepen-

    dent management of a newspaper.

    After the Hanseong Weeklywent out of ex-

    istence, the nation saw eight years pass with

    no newspaper. During that interval, Japa-

    nese began to publish the Chosen Simbun, a

    commerce-oriented Japanese language paper

    published in Incheon, a port city and gate-

    way to Seoul. Chosen is the Japanese pro-

    nunciation of Chosun, the name of Korea

    at the time. North Korea still uses Chosun

    as its name. The paper was launched on Jan-

    uary 28, 1890. What Incheon was to Seoul

    can be compared to what Yokohama was to

    Tokyo. In the 19th century, Yokohama was afoothold for Japans foreign trade. Its a city

    that published Japans first newspaper and

    home to the Newspaper Museum, estab-

    lished by the Japan Association of Newspa-

    per Publishers.

    The Chosen Simbun, swimming with the

    tide of Japans accelerating invasion of Ko-

    rea, expanded its strength and developed

    further and further. Moving its head ofceto Seoul, the daily continued its publica-

    tion until 1942. Preceding the Chosen Sim-

    bunwas the Jinsen Keijo Kakushu Shobo, a

    biweekly commercial journal published in

    the Incheon-Seoul area that evolved into a

    weekly, an every-other-day paper and then a

    daily.

    Japan pushed ahead with its invasion of

    Korea mainly through four means - military

    might, diplomacy, economics and the press.

    The Hanseong Sinbo, inaugurated on Febru-ary 16, 1895 in Seoul with secret funding

    from Japans foreign ministry, was the first

    output of its invasion policy. A bilingual dai-

    ly in Korean and Japanese, the paper started

    to argue in favor of Japans conquering of

    Korea. Japanese assassins who conspired in

    the assassination of Queen Min used the

    papers ofce as their secret base of opera-

    tion.Following the Russo-Japanese War, Japan

    published a number of Korean-language

    newspapers and used them as news outlets

    publicizing its invasion on the one hand,

    and induced papers published by Koreans

    to follow the tone of argument friendly to

    Japan by employing repression and appease-

    ment policies simultaneously on the other.

    the Hanseong Sunbo

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    30 Korea Journalism Review

    Cover Story : Korean Media Overview

    3. The First Private Newspaper

    It was the Independence Club (Dongnip

    Hyeophoe) that spread the enlightenment

    movement in the latter half of the 1890s.

    Playing the pivotal role in the drive was

    the Independent(Dongnip Sinmun), a pri-

    vate newspaper inaugarated by Soh Jae-pil

    (Philip Jaisohn: November 28, 1863-January

    5, 1951), a pioneer of the enlightenment

    movement, on April 7, 1896. The English

    version of the Independent,which Soh Jae-

    pil published alongside its Korean version,

    was the first newspaper that informed West-

    erners of fresh news about Korea and cor-

    rected mistaken notions about Korea.

    Soh Jae-pil, studying Chinese classics

    while young, passed the highest-level state

    examination to recruit ranking ofcials dur-

    ing the Chosun Dynasty. But he went to

    Japan in May 1883 to study the Japanese

    language at Keio Gijuku (Keio Academy),

    a private school run by Yukichi Fukuzawa,

    for six months. He then entered Doyama

    Army Academy in or around November

    and undertook military education. He was

    commissioned an officer upon returning

    home in late July 1884. On December 4 that

    year, Soh Jae-pil took part in the coup detat

    masterminded by radical reformists Kim

    Ok-kyun and Pak Young-ho. With the coup

    aborted, he emigrated himself to the United

    States by way of Japan. His family members,

    condemned as traitors, were either executed

    or poisoned themselves to death. At the

    time he was 19 years old.

    Unable to return home, Soh Jae-pil stud-

    ied on his own in the United States where

    he was a stranger and had no relatives.

    Completing the secondary school, he wasadmitted to Columbian Medical College in

    Columbia, from which he graduated with

    honors in 1892. In June 1890, he became

    the rst Korean acquiring American citizen-

    ship and assumed the American name Philip

    Jaisohn. In June 1894, he married Muriel

    Josephine Armstrong, a daughter of George

    Buchanan Armstrong, the pioneer of the

    American railroad postal service. In themeantime, the political situation at home

    changed. With a pro-Japanese cabinet set up

    in the Reform of 1894 (Kabo Kyongjang),

    those who took part in the 1884 coup and

    exiled themselves abroad were pardoned.

    Soh Jae-pil returned home to publish the In-

    dependent.

    The Independenthad an absolute impactthe Independent (Dongnip Sinmun)

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    31Volume. 4 2010 no.2

    on the history of Koreas media. The Han-

    seong Sunboand Hanseong Weekly. published

    by the government, modeled themselves

    after Japanese papers and mostly reprinted

    stories written in the Chinese press. They

    lacked the function of criticism. Until then,

    Korea had no access to the Western press.

    The model of the Independentwas Ameri-

    can newspapers. Soh Jae-pil, educated in

    the United States and being an American

    citizen, had no need to heed the restrictions

    imposed by the Korean government. The

    Independentpromoted freedom of the press

    and democracy and exercised the function

    of criticism. It demonstrated that a news-

    paper could manage itself independently

    on readership fees and advertising revenues,

    without relying upon any polit ical group.

    The Independentinuenced Koreas modern

    political history as well by playing a signi-

    cant role in expanding and promoting the

    enlightenment of the public and the enlight-enment movement.

    The Independents critical function and

    resistance spirit against external aggres-

    sion have remained the tradition of Koreas

    media. The Independentprovided the theory

    and direction of the enlightenment move-

    ment and fullled the role of protecting the

    national interests. From the perspective of

    the history of Koreas media, its merit infacilitating the emergence of private news-

    papers is highly evaluated. The news media

    has observed April 7, the date when the

    Independentwas inaugurated, as newspaper

    day since April 1957, a representation of

    the intent of Korean journalists to inherit

    the spirit ofthe Independent. A sense of con-

    fidence that newspapers can be managed

    on readership fees and advertising revenues

    alone, fostered by the Independent,prompted

    many newspapers to emerge later. The Inde-

    pendent facilitated newspaper development

    in Korea.

    4. Methodist and

    Presbyterian Newspapers

    Christianity also contributed to the develop-

    ment of the media greatly. Methodist and

    Presbyterian missionaries began to pub-

    lish newspapers about the same time. The

    Methodist Mission, equipped with printing

    facilities, inaugurated the Christian Advocate,

    a weekly printed exclusively in the Korean

    alphabet, Hangeul, on February 2, 1897. Its

    publisher Henry Gerhard Appenzeller (Feb-

    ruary 6, 1858-June 11, 1902) came to Korea

    in 1885 and contributed toward developing

    the nations education and the press.Opening Pai Chai Academy in 1887, he

    launched Western education in Korea. He

    assumed the editorship of the Korean Reposi-

    tory, a monthly in the English language, in

    1895 and assumed the acting presidency of

    the Independentin May 1898, when Soh Jae-

    pil returned to the United States. The Pres-

    byterian Mission inaugurated the Christian

    News on April 1, 1897, with Horace GrantUnderwood (July 19, 1859-October 12,

    1916) serving as the publisher. Underwood

    also contributed greatly to the development

    of religion, politics, education and culture in

    Korea during the countrys enlightenment

    period.

    The Christian Advocate and the Christian

    News, following an eight-year-long publica-

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    32 Korea Journalism Review

    Cover Story : Korean Media Overview

    tion, issued their respective final issues on

    June 24, 1905, and merged themselves into

    the Christian Newson July 1 of the same

    year. The Catholic Church launched the

    Kyonghyang Sinmunweekly on October 19,

    1906. French priest Florinan Demange was

    the publisher.

    The year of 1898 marked a unique pe-

    riod in the history of Koreas media as the

    press circle was born with the Jeguk Sinmun

    and Hwangseong Sinmun, representative na-

    tionalist papers in the final months of the

    Great Han Empire, launched in addition to

    the Hyopseong Hoeboand Maeil Sinmun. The

    year also saw the formation of the News-

    paper Friendship Society, the first of its

    kind in the country, which began to discuss

    in group the freedom of the press and

    newspaper management as well as promot-

    ing mutual friendship between newspapers.

    Such a rapid growth of private newspapers

    was possible largely thanks to the followingthree factors:

    First, the social situation at the time ac-

    celerated the publication of private papers.

    With the thought of enlightenment spread-

    ing, a social reform movement was invigo-

    rated centered around the Independence

    Club and Manmin Gongdong Hoe (the

    Convention of Ten Thousand People). De-

    sire for information thrived across societyand strong moves emerged to publish pa-

    pers as a means of achieving social reforms.

    Second, the social leaders began to have

    confidence that newspapers could sustain

    themselves as independent businesses. The

    Independent, though inaugurated with the

    governments financial subsidies, proved it

    possible to publish a newspaper indepen-

    dently on readership fees and advertising

    revenues.

    Third, the inauguration of the pro-Jap-

    anese Hanseong Shinboa year prior to that

    of the Independenton the strength of secret

    subsidies from Japans foreign ministry and

    the publication since 1897 of the Christian

    Advocateand Christian News stimulated the

    appearance of private newspapers.

    5. Publication of Dailies

    by Private Citizens

    On January 1, 1898, Hyopseong Hoe (As-

    sociation for Cooperative Endeavors), the

    student association of Pai Chai College, in

    Seoul, launched the Hyopseong Hoebo (the

    Journal of Hyeopseong Hoe) , a weekly,

    which developed into the daily newspaper

    named the Maeil Sinmun(Diurnal News) in

    April. The Maeil Shinmunwas the first dailypublished in Korea. The Independent, inau-

    gurated two years earlier, was then published

    every other day or three times a week. Fol-

    lowing the publication of the Maeil Sinmun,

    the Independentbecame a daily in July. Syng-

    man Rhee (Yi Sungman), then a Pai Chai

    College student, worked as a Maeil Sinmun

    reporter, and assumed the dailys presidency

    for a while. Syngman Rhee, an indepen-dence fighter, became the first president of

    the Republic of Korea.

    The inauguration of the Jeguk Sinmun

    (August 10, 1895) and the Hwangseong Sin-

    mun(September 5, 1898) followed. Thus

    four dailies -- the Maeil Sinmun, Jeguk Sin-

    mun, Hwangseong Sinmun and Independent --

    were published in Seoul. The Shisa Chongbo

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    (The All-Encompassing Report on Current

    Affairs) was born the next year in January

    1899. A variety of papers, including reli-

    gious and ordinary ones, came into being

    for the rst time in Korea.

    The Jeguk Sinmun and Hwangseong Sin-

    muncontinued publication until 1910 when

    Japan annexed Korea by force. Published

    exclusively in the Korean alphabet, the Jeguk

    Sinmuns readership consisted mainly of

    commoners. The editor-in-chief was Syng-

    man Rhee, who waged an active battle of

    words with the Hanseong Sinbo, published by

    a group of Japanese. He is famous for hav-

    ing written articles in the Jeguk Sinmuneven

    while serving a prison term, after having

    been arrested in January 1899 on charges

    involving his activities within the Indepen-

    dence Club. While traveling to the United

    States for study in November 1904 after

    release from prison in August that year, he

    had two of his observations printed in theop-ed column of the Jeguk Sinmun. The

    newspaper published a total of some 3,240

    issues over 11 years.

    Being published in both Korean and Chi-

    nese characters, the Hwangseong Sinmun had

    intellectuals and the upper class as its main

    readers. The daily was a joint-stock com-

    pany, electing executives at a staff members

    general assembly. It was in the August 31,1902 staff general meeting that Chang Chi-

    yon, the prominent disputant, was elected

    the president of the newspaper.

    6. Confrontation between

    Nationalist and Pro-Japanese

    Papers

    Presenting many similarities in the history

    of Koreas media are the two turbulent

    times from 1904 when the Russo-Japanese

    War ended till 1910 when Korea was an-

    nexed by Japan and from 1945 when Korea

    was liberated till 1948 when the Republic

    of Korea was born. The former was the so-

    called protectorate-rule period prior to

    Japans colonization of Korea when Japan

    set up the Japanese Resident-General ex-

    tending its hands of invasion to Korea, and

    the latter a period during which the United

    States military government ruled Korea fol-

    lowing Koreas emancipation from Japans

    imperialism and our independent govern-

    ment was born. The two periods preceding

    and following Japans colonization of Ko-

    rea, short as they were, were similar to each

    other in that Korea could not exercise its

    sovereignty politically and in that they both

    featured political and social turbulence. In

    time of political instability in any country, itis usual that many newspapers characterized

    by strong political leanings will emerge, ris-

    ing and falling in step with the vicissitudes

    of the political groups that they espouse. In

    Korea also, the afore-mentioned two peri-

    ods were times of extreme divisiveness in

    public opinion and accordingly, the numbers

    of newly-published newspapers rose sud-

    denly and sharply.Following the outbreak of the Russo-

    Japanese War, the media was split into

    two: pro-Japanese papers and national-

    istic newspapers. The papers of the nation-

    alist camp a