Fair Trade Commission: “Screen Quota Should Be Reduced or Abolished”

The Fair Trade Commission (FTC) has publicly announced that the controversial screen quota policy of the Korean movie industry has to be either reduced or abolished.

It has also called for a reformation or abolishment of restrictions related to the mobile telecom industry such as price approval regulation, price declaration regulation, or the regulation against paying deposits for mobile terminals.

FTC announced through a National Assembly inspection report submitted to Rep. Mun Hak-jin of the National Policy Committee on October 17 that “the screen quota promotes the production of low quality movies, causing a waste of human and material resources,” advocating the need to reduce or abolish this policy.

This was an affirmation of FTC’s previous stand on the screen quota; that it is an economically restricting policy. However it is exceptional for the commission to publicly criticize the screen quota.

FTC pointed out, “The domestic movie industry needs to compete with foreign movies independently without the overprotection of policies such as the screen quota.”

Considering the fact that the market share of local movies in Spain, a country that enforces the screen quota, is only 13.7 percent (in 2002), whereas in Japan, it is up to 27 percent without a screen quota, the percentage of local movies made is not necessarily higher with a screen quota.

FTC asserts that the screen quota violates the right of moviegoers to choose their movies and the business rights of cinema owners, and prevents the Korean movie industry from becoming more competent.

FTC also stated in a National Assembly inspection report submitted to Rep. Chai Su-chan of the Uri Party this day that the current regulations on mobile telecom companies against paying deposits for mobile terminals is impeding fair competition of the market and might violate consumer rights.

It also pointed out that the price approval and declaration regulations on mobile telecom businesses is hindering competition among businesses, causing a retardation in the competence of the communication industry.

On this issue, FTC is planning to gather opinions on the prospect of regulation against paying deposits for mobile terminals being abolished by 2006.

Also, the commission has agreed to seek ways to change the price approval regulation that is applied to the current monopolistic SK Telecom into price cap regulation, and the price declaration regulation that is applied to KTF and LG Telecom to notification regulation.

Yong Park sunjung71@hotmail.com