WORLD PRESS TRENDS - World Association of Newspapers

SOUTH KOREA
ADVERTISING EXPENDITURE & ECONOMIC DATA
Main economic indicators 1995-2001
1995 1996 1997 1998 1999 2000 2001
1 US$= 1,291 Won at 2001 rate
Gross Domestic Product (Won billion)
at current prices 377,350 418,479 453,276 444,367 482,744 521,959 545,013
% change 16.7 10.9 8.3 -2.0 8.6 8.1 4.4
at 2001 prices 476,970 504,249 522,615 476,808 513,627 543,009 545,013
% change 11.7 5.7 3.6 -8.8 7.7 5.7 0.4
Gross Domestic Product per capita (Won 000)
at current prices 8,369 9,189 9,856 9,571 10,302 11,040 11,513
at 2001 prices 10,578 11,073 11,364 10,269 10,961 11,485 11,513
Population
Millions 45.1 45.5 46.0 46.4 46.9 47.3 47.3
Consumer Price Index
2001=100 79.1 83.0 86.7 93.2 94.0 96.1 100.0
%change 4.5 4.9 4.5 7.5 0.8 2.3 4.0
Ad.spend as a % of GDP
1.21 1.29 1.35 0.98 1.12 1.38 1.16
Advertising Expenditure Growth (%)
at current prices 18.6 17.8 13.4 -28.6 23.5 33.9 -12.7
at 2001 prices 13.5 12.3 8.5 -33.6 22.4 31.0 -16.1
Source: IFS, ZenithOptimedia
Advertising expenditure
(Won millions, in current prices)
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Newspapers 1,832,062 2,060,826 2,872,643 2,297,975 2,907,606 3,570,000 2,758,700 3,123,400 3,185,900 3,249,600 3,314,600
Magazines 175,677 207,475 240,923 167,539 218,985 297,500 284,600 322,200 328,600 335,200 341,900
Television 1,281,725 1,591,476 1,555,005 1,049,898 1,532,773 2,242,200
Radio 187,225 216,619 189,031 110,297 145,895 250,400
Others 1,101,937 1,319,019 1,258,721 739,764 584,286 722,700
Total 4,578,626 5,395,415 6,116,323 4,365,473 5,389,545 7,435,900 6,304,000 7,045,200 7,478,400 7,846,300 8,243,300
Source: 1995-2001 Korea Advertising Data, 2001-2005 ZenithOptimedia
Notes: Discounts not given, includes agency commission and classifieds, excludes production costs,
others’ includes cinema, outdoor and direct mail.
Research
Circulation is audited by: Korea Audit Bureau of
Circulations (ABC). However, the Chosun Ilbo is the only
newspaper in Korea to submit to this audit system. All
other titles’ circulation and readership figures are claims
made by their publishers.
Taxes
VAT on: sales 10% advertising 10%
newsprint 10% plant 10%
composition 10% (standard VAT rate 10%)
Subsidies
There are no subsidies for newsprint or equipment.
Discounts
on: post 70% rail 75% telephone 0 telegraph 0 telex 0
Ownership
Does any law exist governing publishing-house ownership, or
the registration of shares in newspaper-publishing companies
No
Is there any law prohibiting or restricting foreign companies or
individuals from owning shares, and in particular, the majority
of shares, of domestic daily newspapers According to the
OECD’s Multilateral Agreement on Investment (MAI)
with the Korean government, from January 1 1999
newspapers are allowed to attract foreign ownership of
up to 30%.
Is there any law prohibiting daily newspaper or periodical
publishers from operating radio or television stations in the same
locality Article 3 (Prohibition of Concurrent Operation)
of the Act Relating to Registration of Periodicals provides
that a daily newspaper (meaning any general or special
daily newspaper or foreign-language daily newspaper)
and news agency shall not be operated concurrently with
a broadcasting station (TV or radio under the Broadcast
Act, Cable under the Cable Act).
So as to guarantee disclosure and transparency in the capital
structure and to avert silent partnerships, is there a law or rule
making it possible to determine who actually owns a publishing
company No
Is there an antitrust law limiting concentration in the daily
press No
Is further regulation of media concentration expected No
WORLD ASSOCIATION OF NEWSPAPERS - WORLD PRESS TRENDS 2003 251