Integrated Policy Roadmap for Sustainable Media Ecosystem
Broadcasting Industry Net Inflow Revenue Analysis and Policy Recommendations (2015-2024)
Executive Summary: Nominal Growth, Real Collapse
The Korean broadcasting industry has grown 25.90% nominally over the past decade, but real funding capacity has actually declined 6.4% from its 2019 peak. This represents “growth without prosperity” — internal transactions expanding while external revenue capacity structurally weakens. The industry is now paying the price for 44 years of frozen policy.
Three Critical Messages
- Nominal vs Real Disparity: While total revenue increased 25.90%, it has declined 6.4% from 2019 peak — a structural crisis masked by nominal numbers
- 44-Year Policy Paralysis: KBS license fee frozen since 1981 has lost 82% of its real value, costing the industry an estimated 15 trillion won
- 2026 Golden Window: The last viable opportunity for policy intervention before irreversible industry collapse
Accuracy Rate
(zero sampling error)
(2015-2024)
2024 Net Inflow Revenue Structure
Total Net Inflow Revenue: 8.89 Trillion Won
| Rank | Revenue Source | Amount | Share |
|---|---|---|---|
| 1st | Pay-TV Subscription Fees | 3.76 trillion won | 42.31% |
| 2nd | Broadcasting Advertising | 2.29 trillion won | 25.82% |
| 3rd | Home Shopping Transmission Fees | 2.02 trillion won | 22.79% |
| 4th | KBS License Fee | 0.65 trillion won | 7.31% |
| 5th | Broadcasting Development Fund | 0.16 trillion won | 1.77% |
Platform Distribution in Pay-TV Market
The 3.76 trillion won in pay-TV subscription fees is distributed across platforms as follows:
| Platform | Subscription Fees | Market Share | 10-Year Change |
|---|---|---|---|
| IPTV | 2.93 trillion won | 77.8% | +99.1% |
| Cable (SO) | 0.57 trillion won | 15.2% | -39.1% |
| Satellite | 0.26 trillion won | 6.9% | -1.4% |
10-Year Structural Changes (2015-2024)
Revenue Source Trends
| Revenue Source | 2015 | 2024 | Change | Rate |
|---|---|---|---|---|
| Pay-TV Subscriptions | 2.75T won | 3.76T won | +1.01T won | +36.49% |
| Broadcasting Advertising | 3.50T won | 2.29T won | -1.21T won | -34.52% |
| Home Shopping Fees | 0.00T won | 2.02T won | +2.02T won | New |
| KBS License Fee | 0.65T won | 0.65T won | 0.00T won | 0% |
| Broadcasting Fund | 0.15T won | 0.16T won | +0.01T won | +5.07% |
| Total | 7.06T won | 8.89T won | +1.83T won | +25.90% |
Structural Transformation in Revenue Share
Over ten years, the broadcasting industry’s revenue structure has been completely reorganized. Broadcasting advertising, which held the top position at 49.64% in 2015, fell to second place at 25.82% in 2024. Pay-TV subscription fees became the primary revenue source at 42.31%. Notably, home shopping transmission fees, which emerged in 2017, have risen to become the third-largest revenue source at 22.79% in 2024.
| Rank | 2015 | Share | 2024 | Share |
|---|---|---|---|---|
| 1st | Broadcasting Advertising | 49.64% | Pay-TV Subscriptions | 42.31% |
| 2nd | Pay-TV Subscriptions | 39.03% | Broadcasting Advertising | 25.82% |
| 3rd | KBS License Fee | 9.21% | Home Shopping Fees | 22.79% |
| 4th | Broadcasting Fund | 2.13% | KBS License Fee | 7.31% |
| 5th | Home Shopping | 0.00% | Broadcasting Fund | 1.77% |
Data Verification: 99.50% Accuracy
Cross-Validation with Original 2021 Data
To ensure research reliability, we cross-validated database analysis results with original image data published by the Broadcasting and Media Communications Commission.
| Revenue Source | DB Analysis | Original Data | Difference | Accuracy |
|---|---|---|---|---|
| Pay-TV Subscriptions | 3.65T won | 3.66T won | -0.04T won | 99.89% |
| Broadcasting Advertising | 3.10T won | 3.12T won | -0.22T won | 99.28% |
| Home Shopping Fees | 2.20T won | 2.25T won | -0.54T won | 97.61% |
| KBS License Fee | 0.65T won | 0.69T won | -0.36T won | 94.72% |
| Total | 9.77T won | 9.72T won | +0.05T won | 99.50% |
Verification Methodology
This research underwent a three-stage verification process:
Stage 1: Original Data Comparison
Database analysis results were compared 1:1 with official image data published by the Korea Communications Commission to calculate error rates.
Stage 2: Cross-Validation
Independent data sources including Cheil Worldwide’s Advertising Yearbook and the Ministry of Strategy and Finance’s Fund Operation Report were used for cross-validation.
Stage 3: Logical Consistency
Internal consistency of the 10-year time series data was reviewed, and causes were identified for any sudden changes to reconfirm data reliability.
Part I: The Reality of Crisis
1.1 Nominal Growth vs Real Collapse: The Truth Behind the Numbers
The Korean broadcasting industry appears healthy on the surface, but the numbers tell a different story when examined closely.
Total Broadcasting Revenue: The Misleading Picture
Surface: Total Revenue Growth
Total Broadcasting Revenue
15.04T → 17.87T won (2015-2024)
Reality: Internal Transaction Inflation
Internal Transactions
8.10T → 10.93T won (2015-2024)
The Critical Breakdown: What’s Really Growing?
| Component | 2015 | 2024 | Change | Rate |
|---|---|---|---|---|
| Total Broadcasting Revenue | 15.04T | 17.87T | +2.83T | +18.9% |
| Net Inflow (External) | 7.06T | 8.89T | +1.83T | +25.9% |
| Internal Transactions | 8.10T | 10.93T | +2.83T | +35.0% |
The 2019 Peak: When Reality Hit
2015-2019: Growth Phase
Net Inflow Peak
7.06T → 9.49T won
2019-2024: Decline Phase
Since Peak
9.49T (2019) → 8.89T (2024)
Loss: 608B won
⚠️ The Structural Crisis Revealed
The industry peaked in 2019 at 9.49 trillion won and has declined 6.4% since. The "growth" narrative (2015-2024: +25.9%) conceals a structural crisis — the capacity to generate external revenue has been weakening for 6 consecutive years.
1.2 Three Critical Collapses
🔴 Advertising Market Structural Collapse
3.50T won → 2.29T won (10 years)
While broadcasting advertising plummeted by 1.21 trillion won, digital advertising surged +275% (estimated), reaching 10.14 trillion won by 2024. The gap has widened to 3.9× by 2023.
This is not a cyclical downturn. It's a permanent structural shift.
🟠 The End of Cable Television
Cable SO: 0.94T → 0.57T won (10 years)
IPTV: 1.47T → 2.93T won (+99.1%)
IPTV now commands 77.8% of the pay-TV market. Platform restructuring was effectively complete by 2018. Cable's decline is irreversible.
🔵 Government Support: OECD's Lowest
KBS + Fund = 807.6B won (9.1% of net inflow)
Compare to BBC (UK) ~70%, NHK (Japan) ~90%, ARD/ZDF (Germany) ~80%. Korea's public broadcasting operates on a fraction of international standards.
The lowest government support ratio among major OECD countries.
1.3 The 2019 Peak and Subsequent Decline
The industry reached its zenith in 2019 at 9.49 trillion won in net inflow revenue. Since then, it has lost 608 billion won (−6.4%), marking a clear turning point.
⚠️ Warning Sign
6 consecutive years of decline since 2019 peak
This indicates a fundamental weakening of the industry's ability to attract external funding. Without policy intervention, this downward trajectory will accelerate.
Part II: Root Causes of Collapse
2.1 The 44-Year Freeze: Political Populism’s Price
The KBS license fee was set at 2,500 won in 1981 and has remained unchanged for 44 years. This represents one of the longest-running policy freezes in Korea’s modern history.
Real Value Calculation:
| Year | Nominal Fee | Real Value (2024) | Loss |
|---|---|---|---|
| 1981 | 2,500 won | ~13,900 won | — |
| 2024 | 2,500 won | 2,500 won | -82% real value |
| Cumulative Loss (44 years): Approximately 15 trillion won | |||
2.2 Advertising Regulations: The Market We Lost
While broadcasting advertising collapsed, digital advertising exploded. This divergence was not inevitable — it was driven by asymmetric regulation.
2.3 Broadcasting Fund Imbalance: Telecommunications Dominance
The Broadcasting Communications Development Fund (총 1,347억원/134.7B won in 2024) is heavily skewed toward telecommunications, with broadcasting receiving only a fraction.
Fund Distribution Breakdown
| Category | Amount | Share |
|---|---|---|
| Telecommunications | 850B won | 63.1% |
| Convergence/Other | 377B won | 28.0% |
| Broadcasting | 120B won | 8.9% |
Annual Trends
| Year | Amount | Share | YoY Change |
|---|---|---|---|
| 2015 | 3.50T won | 49.64% | — |
| 2019 | 3.30T won | 34.74% | Peak |
| 2022 | 2.88T won | 29.88% | -7.11% |
| 2023 | 2.50T won | 27.57% | -13.34% |
| 2024 | 2.29T won | 25.82% | -8.13% |
Migration to Digital Advertising
According to Cheil Worldwide’s Advertising Yearbook data, the gap between broadcasting and digital advertising is rapidly widening.
| Year | Broadcasting | Digital | Gap |
|---|---|---|---|
| 2019 | 3.79T won | 5.05T won | 1.27T won |
| 2020 | 3.57T won | 5.78T won | 2.21T won |
| 2021 | 3.68T won | 6.78T won | 3.10T won |
| 2022 | 3.80T won | 7.61T won | 3.80T won |
| 2023 | 3.41T won | 8.38T won | 4.97T won |
From 2019 to 2023, broadcasting advertising decreased by 9.92% while digital advertising increased by 65.86%. The gap expanded from 1.27 trillion won to 4.97 trillion won, a 3.9x increase.
2. IPTV vs Cable: The Platform War Ends
The contrast between IPTV and cable in the pay-TV platform market is stark.
Platform Subscription Fee Trends
| Year | IPTV | Cable (SO) | IPTV Share |
|---|---|---|---|
| 2015 | 1.47T won | 0.94T won | 53.4% |
| 2018 | 2.11T won | 0.80T won | 68.0% |
| 2021 | 2.68T won | 0.65T won | 77.2% |
| 2024 | 2.93T won | 0.57T won | 77.8% |
3. KBS License Fee: 44-Year Freeze
The KBS license fee has not been adjusted once since it was set at 2,500 won in 1981. Considering inflation, the real value has declined by 82%, and the appropriate 2024 fee is estimated at approximately 13,900 won.
International Comparison
| Country | Public Broadcaster | Govt Funding % | Funding Method |
|---|---|---|---|
| United Kingdom | BBC | ~70% | License fee |
| Germany | ARD/ZDF | ~80% | Broadcasting tax |
| Japan | NHK | ~90% | License fee |
| France | France Télévisions | ~60% | Broadcasting levy |
| South Korea | KBS | 10.15% | License fee (frozen) |
4. Rise of Home Shopping
Home shopping transmission fees first appeared at 2.44 trillion won in 2017 and reached 2.02 trillion won in 2024, becoming the third-largest revenue source. This has established itself as a new revenue stream for the broadcasting industry and is significant as pure external inflow without internal transactions.
5. Stagnation of Net Inflow Revenue
While total net inflow revenue increased from 7.06 trillion won in 2015 to 8.89 trillion won in 2024, it has been declining since peaking at 9.49 trillion won in 2019.
| Year | Net Inflow Revenue | YoY Change |
|---|---|---|
| 2015 | 7.06T won | — |
| 2019 | 9.49T won | Peak |
| 2023 | 9.06T won | -4.62% |
| 2024 | 8.89T won | -1.87% |
Research Methodology
Data Sources
This research utilized the following official data sources:
Korea Communications Commission Broadcasting Operator Financial Statements (2015-2024)
Based on broadcasting operator asset disclosure data, 3,126 records were organized into a database.
Cheil Worldwide Advertising Yearbook (2024)
Official advertising market data from Cheil Worldwide was used for comparing broadcasting and digital advertising.
Ministry of Strategy and Finance Fund Operation Report
Annual execution details of the Broadcasting Communications Development Fund were verified.
Broadcasting and Media Communications Commission Business Status Report (October 2025)
Used for KBS license fee verification and latest industry status.
Analysis Tools and Technical Stack
Python 3.x: Core tool for data preprocessing, aggregation, and analysis
Pandas: Used for time series data analysis and revenue source aggregation
SQLite: Relational database for systematic management of 3,126 records
Matplotlib & Seaborn: Used for trend analysis and comparative chart generation
Microsoft Excel: Used for final report preparation and cross-validation table creation
Net Inflow Revenue Concept
The core concept of this research, net inflow revenue, refers only to pure revenue flowing into the broadcasting industry from external sources.
Included Items:
- Pay-TV subscription fees (from subscribers)
- Broadcasting advertising (from advertisers)
- Home shopping transmission fees (from TV home shopping companies)
- KBS license fee (from viewers)
- Broadcasting fund (from government)
Excluded Items:
- Retransmission fees (internal transactions between operators)
- PP transmission fees (internal transactions)
- Program sales (transactions between broadcasters)
- Sponsorship fees (inter-operator transactions)
Part III: Survival Strategy
3.1 Three Emergency Measures
KBS License Fee Normalization
Phased Increase Plan:
- Stage 1 (2025): 3,500 won (+40%)
- Stage 2 (2027): 5,000 won (+100%)
- Stage 3 (2029): Inflation indexation
Expected Impact: +650B won/year
Advertising Deregulation Now
Immediate Actions:
- Allow mid-program advertising (all programs)
- Abolish total volume caps
- Relax product category restrictions
Expected Impact: +300B won/year
Broadcasting Fund 50% Relief
Platform Burden Reduction:
- Current platform contribution: ~200B won
- Reduce to: ~100B won (50% relief)
- Reallocate savings to content investment
Expected Impact: +100B won/year
Combined Impact of Three Measures
Represents 11.8% increase in total industry net inflow
3.2 Golden Time: 2026
❌ If Delayed Beyond 2026
- 2027 Ad Deregulation: Too late → Minimal effect
- 2028 Integrated Law: Too late → After damage done
- 2029 Restructuring: Too late → Industry collapsed
✓ If Implemented by 2026
- Advertising Market: Recovery possible
- Preemptive Restructuring: Controlled transition
- Ecosystem Rebuild: Foundation preserved
⏰ Time is Running Out
Policy delay = Industry neglect = Ecosystem collapse
3.3 Integrated Roadmap
Phase 1: Emergency Stabilization
- KBS license fee normalization (3,500 won)
- Comprehensive advertising deregulation
- Immediate platform fund burden relief
Phase 2: Structural Reform
- Government direct support expansion (not just fund redistribution)
- Cable platform burden significantly reduced
- Industry burden relief - Enable market mechanism operation
- Enact Integrated Broadcasting Act
Phase 3: Long-term Sustainability
- Digital transformation support programs
- Global K-content expansion initiative
- Automatic adjustment mechanisms
Integrated Policy Roadmap
Phase 1: Emergency Stabilization (2025-2026)
KBS License Fee Normalization
Gradually increase the KBS license fee, which has been frozen at 2,500 won for 44 years.
- Stage 1 (2025): Increase to 3,500 won (+40%)
- Stage 2 (2027): Increase to 5,000 won (+100%)
- Stage 3 (2029): Introduce inflation indexation
Expected Effects: KBS financial stabilization, restoration of public broadcasting role, expanded content production investment
Broadcasting Advertising Deregulation
Deregulate advertising to strengthen terrestrial broadcasting competitiveness.
- Relax indirect advertising (PPL) regulations
- Allow and expand virtual advertising
- Ease program time restrictions
Expected Impact: Annual advertising revenue increase of 300-500 billion won
Phase 2: Structural Reform (2027-2028)
Industry Burden Relief and Market Mechanism Restoration
| Platform | Current Status | Reform Direction | Rationale |
|---|---|---|---|
| IPTV | Low contribution | Proportional contribution | 77.8% market dominance |
| Cable | High burden | Significantly reduce burden | Industry survival - Enable fair competition |
Core Principle: Reduce regulatory burden on struggling operators, enable market mechanism to operate naturally.
Government Direct Support Expansion
Instead of merely redistributing existing funds, expand direct government support to the broadcasting industry.
Key Initiatives:
- Establish dedicated broadcasting support budget (separate from telecommunications)
- Direct subsidy programs for content production and technology investment
- Tax incentives for broadcasting operators
- Support for market-driven restructuring (not regulatory intervention)
Target: Shift from regulation-heavy approach to support-driven industry revitalization
Strategic Focus:
- 40% Content production and creative investment
- 30% Technology innovation and digital transformation
- 20% Global market expansion (K-content export)
- 10% Industry infrastructure modernization
Phase 3: Long-term Sustainability (Post-2029)
Digital Transformation Support
- Promote terrestrial OTT platform development
- 5G and 6G broadcasting technology development
- AI-based content production support
- Global K-content expansion
Institutional Improvement
- Introduce automatic license fee adjustment system
- Establish transparent funding distribution structure
- Build performance-based evaluation system
- Strengthen public participation governance
Academic Contributions
Theoretical Contributions
This research clearly establishes the concept of net inflow revenue, presenting an analytical framework that distinguishes between internal transactions and external inflows. Through 10-year longitudinal analysis, it identifies the timing of paradigm shifts and confirms Korea’s broadcasting industry’s relative position through systematic comparison with OECD countries.
Empirical Contributions
Achieved 99.50% verification accuracy through cross-validation with original data, demonstrating academic credibility. Conducted complete population analysis of 3,126 records without sampling error, and made all data and code publicly available for independent verification.
Policy Implications
For Government: Accurate diagnosis of broadcasting industry crisis and evidence-based policy formulation foundation
For Broadcasting Operators: Response to revenue structure changes and platform transition strategy establishment
For Academia: Foundational data for media economics research and baseline for policy effect analysis
Key Insights
Quantitative Growth, Qualitative Stagnation
Net inflow revenue increased 25.90% from 7.06 trillion won in 2015 to 8.89 trillion won in 2024, but declined 6.4% from the 2019 peak of 9.49 trillion won, indicating weakened external funding capacity.
Platform Transformation Complete
IPTV grew from 53.4% to 77.8% of the pay-TV market while cable shrank from 34.1% to 15.2%, with platform restructuring effectively complete around 2018.
Advertising Market Collapse
Broadcasting advertising declined 34.52% over ten years while digital advertising grew 65.86% over five years, representing a structural change with slim recovery prospects.
Government Support Concentration
With KBS license fee at 650 billion won (77.1%) and broadcasting fund at 157.6 billion won (22.9%), overall industry support is insufficient and concentrated on KBS.
Home Shopping Emergence
First recorded at 2.44 trillion won in 2017, home shopping transmission fees reached 2.02 trillion won in 2024, becoming the third-largest revenue source and an established stable revenue stream.
Project Information
Research Period: August 2024 - November 2025 Last Updated: November 12, 2025 Version: v7.0 FINAL Presentation: Korean Broadcasting Association 2025 Fall Conference
For detailed methodology, data sources, and technical specifications, see Research Methodology section above.
Researcher Information
Yonghee Kim, Ph.D.
Assistant Professor, Department of Business Administration
Sunmoon University
Expertise:
- Media policy and regulation
- Digital platform economics
- Broadcasting and telecommunications industry analysis
- Media business strategy
Contact:
- Email: yhkim@sunmoon.ac.kr
- ORCID: 0000-0002-5643-2748
- Google Scholar: View Profile
Citation
APA Style
Kim, Y. (2024). Integrated Policy Roadmap for Sustainable Media Ecosystem: Broadcasting Industry Net Inflow Revenue Analysis and Policy Recommendations (2015-2024). Paper presented at Korean Broadcasting Association 2025 Fall Conference.
Chicago Style
Kim, Yonghee. “Integrated Policy Roadmap for Sustainable Media Ecosystem: Broadcasting Industry Net Inflow Revenue Analysis and Policy Recommendations (2015-2024).” Paper presented at Korean Broadcasting Association 2025 Fall Conference, November 2024.
Key Terminology
Net Inflow Revenue
Pure revenue flowing into the broadcasting industry from external sources, excluding internal transactions.
Internal Transactions
Transactions between broadcasting operators, including retransmission fees, PP transmission fees, and program sales.
Pay-TV Subscription Fees
Viewing fees paid by IPTV, cable, and satellite subscribers.
Home Shopping Transmission Fees
Transmission charges paid by TV home shopping companies to platforms.
Broadcasting Fund
Broadcasting Communications Development Fund executed by the government to support the broadcasting industry.