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South Korea's Integrated Broadcasting Bill Set to Shake Up Satellite and Cable Broadcasting Industries

Strategic Insights

— 2 min read

The passage of the controversial Integrated Broadcasting Bill at the National Assembly standing committee is expected to give a significant boost to South Korea's satellite and digital broadcasting industries. The bill, which has been pending for five years, provides a legal framework for digital and satellite broadcasting and allows foreigners, large conglomerates, and press institutions to hold up to 33% stakes in cable and satellite broadcasters. This development is likely to benefit companies like Dacom, Oriental Chemical Industries, Humax, Samsung Electro-Mechanics, Prochips Technology, Samsung Electronics, and LG Electronics, among others.

Key Takeaways:

  • The Integrated Broadcasting Bill provides legal ground for digital and satellite broadcasting in the future, paving the way for increased investments in the sector.
  • Foreigners, large conglomerates, and press institutions will be allowed to hold up to 33% stakes in cable and satellite broadcasters, potentially attracting large capital investments.
  • Companies like Dacom and Oriental Chemical Industries, which have plans to venture into satellite broadcasting, are likely to benefit the most from the law.
  • Shares of satellite TV set-top box manufacturers like Humax and Samsung Electro-Mechanics are expected to rise, as well as digital TV manufacturers like Samsung Electronics and LG Electronics.
  • Mergers between existing general cable broadcasting firms and wire-carried broadcasting firms are expected to grow more active, with Dae Ho and Tong Yang Confectionery emerging as benchmarking targets.
  • The law will break the monopoly of Korea Broadcasting Advertising Corp. (KOBACO) in the advertising field, leading to increased competition among advertising agencies like Cheil Communications and LG Ad.
  • Many small and medium-sized ad firms are likely to close up shop due to increased competition.

Statistics:

  • The Integrated Broadcasting Bill has been pending for five years before being passed.
  • Up to 33% stakes in cable and satellite broadcasters will be allowed to be held by foreigners, large conglomerates, and press institutions.
  • 10 companies, including Dacom and Oriental Chemical Industries, are likely to benefit from the law.
  • Shares of 7 satellite TV set-top box manufacturers are expected to rise.
  • Mergers between existing general cable broadcasting firms and wire-carried broadcasting firms will grow more active.
  • 2 advertising agencies, Cheil Communications and LG Ad, are expected to get more competitive.

Sources:

  • Yonhap
  • Asia Pulse Pte Ltd, "South Korea's satellite, digital and cable broadcasting industries are likely to see their shares rise thanks to the passage of the controversial Integrated Broadcasting Bill at the National Assembly standing committee Tuesday," COMTEX, 01 Dec 1999.
  • (C) 1999 Asia Pulse Pte Ltd -00- ProviderTimeStamp: IPStockSymbols: News Provided by COMTEX (http://www.comtexnews.com)

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