13 South Korean cable TV operators sue to cancel 2026 broadcasting fund levies

Thirteen cable TV system operators (SOs) in South Korea filed a suit on October 8 seeking cancellation of their 2026 Broadcasting and Communications Development Fund levies, naming the Korea Communications Agency (KCA) as defendant. The Korea Cable TV Broadcasting Association (한국케이블TV방송협회) announced at a press briefing at the Seoul Garden Hotel in Mapo-gu, Seoul, that the operators, including LG HelloVision, had filed the case at the Seoul Administrative Court, Yonhap reported. Electronic Times reported a day earlier that most multiple system operators were taking part, with only some regional SOs staying out. [ 1 , 2 , 3 , 4 ]

The levy rate applied to SOs has been 1.5% since 2017; Newsis reported it was cut that year from 1.73% of broadcast service revenue. The operators argue that an enforcement decree of the Framework Act on Broadcasting Communications Development, Article 12 according to Electronic Times and Newsis, requires the rate to take into account the public nature of broadcasting, market competition and operators' revenue and financial condition, and that subscriber losses and falling profitability were not reflected. [ 1 , 2 , 3 , 4 ]

According to the industry, around 90 SOs earned 14.9 billion won in operating profit last year but paid 25 billion won into the fund, 168% of operating profit. Thirty-eight SOs that posted operating losses paid a combined 9.5 billion won; Electronic Times put their combined operating losses at 117.8 billion won. [ 1 , 3 ]

The association named non-exercise of discretion and breaches of the principles of proportionality and equality as the main legal issues. It said the same rate is applied to SOs and IPTV despite diverging market conditions, and that other regionally based broadcasters have reduction criteria while SOs have none. Newsis reported that a commission notice provides reductions for regional terrestrial broadcasters, expanded through two revisions. [ 2 , 3 , 4 ]

Shin Ho-chul, the association's policy director, said the suit was filed to obtain a legal ruling on whether the levies are lawful. "We have repeatedly asked the government to lower the levy rate, but it has never been reflected," he said, according to Asia Economy. [ 2 , 4 ]

The Ministry of Science and ICT reviewed lowering the rate to 1.3% last year and consulted the industry, but discussions stalled after the work was transferred to the Broadcasting, Media and Communications Commission (방송미디어통신위원회), and the 2026 levies notified at the end of August kept the 1.5% rate. The association said it hopes the commission's ongoing research will lead to a revised rate or calculation system around August next year. [ 1 , 2 , 3 , 4 ]

Satellite broadcaster KT Skylife, which turned to losses after acquiring HCN in 2021, submitted a proposal to the commission in August seeking improvements to paid-TV operators' fund levies, including a lower rate. [ 1 , 3 ]