The rapid growth of over-the-top (“OTT”) streaming services both onshore and offshore is changing the game in the Korean media and entertainment industry. In particular, the growing influence of certain offshore streaming services in Korea is transforming the traditional TV market, posing challenges to the current regulatory frameworks wherein OTT streaming services are not subject to the same level of regulations as traditional TV services.
Below is brief summary of the current regulatory frameworks governing OTT streaming service provider (“OTTSSP”) in Korea.
Under the Telecommunications Business Act, OTTSSP are interpreted as ‘value-added telecommunications service providers.’ No registration required, yet only required to file a declaration to the Ministry of Science, ICT and Future Planning (Article 22 of the Telecommunication Business Act.
Under the Network Act, OTTSSP are interpreted ‘information and communications service providers’ as providing their services vis information and communications networks (Article 2(1)(iii) of the Network Act).
Under the Copyright Act, OTTSSP are interpreted as ‘online service providers’ as transmitting copyrighted materials via online network (Article 2(30) of the Copyright Act).
Under the broadcasting laws, OTTSSP are not falling under the definition of ‘broadcasting.’ As such, OTT platforms are not regulated by the broadcasting laws, but by the internet-related laws.
OTT content is not subject to the Broadcasting Review Regulation which stipulates review standards for broadcasting programs. Instead, it is regulated by the Information and Communications Review Regulation which was issued pursuant to the Act on the Establishment of the Korea Communications Commission. VOD services are required to comply with the Age Rating Standards of the Korean Film Council under the Promotion of the Motion Pictures and Video Products Act.
The changing market reality is fueling debate on whether OTT streaming services should be regulated by the same rules in place for traditional broadcasting.
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