[Edaily Reporter Yun Junghoon ] Thirteen cable TV system operators (SOs), including LG HelloVision(037560), have filed an administrative lawsuit challenging the government’s decision to impose levies for the Broadcasting and Telecommunications Development Fund. They argue that it is unfair to apply the same collection rates as in the past without reflecting changes in the business environment, such as declining subscriber numbers and deteriorating profitability.

The Korea Cable TV Broadcasting Association held a press conference on the 8th at the Seoul Garden Hotel in Mapo-gu, Seoul, and announced that the 13 SOs had filed a lawsuit with the Seoul Administrative Court seeking the revocation of the “2026 Broadcasting and Communications Development Fund assessment.” The defendant is the Korea Communications Agency (KCA), which is responsible for the assessment and collection of the Fund.

Shin Ho-cheol, Director of Policy at the Korea Cable TV Broadcasting Association, pointed out, “According to Article 12 of the Enforcement Decree of the Framework Act on Broadcasting and Telecommunications Development, the calculation of contributions must comprehensively consider the public nature of broadcasting, the competitive landscape of the broadcasting market, and the operator’s revenue scale and financial status.” He added, “Even as cable operators’ operating profits have plummeted, the collection rate was calculated without reflecting any of these legally mandated factors.”

The Broadcasting Development Fund was introduced in 2000, and collections from cable TV operators began in 2003. Initially, the collection rate was adjusted annually based on broadcasting market conditions, but since 2017, a uniform rate of 1.5% of broadcasting service revenue has been applied to all pay-TV operators, including cable TV and IPTV.

The cable TV industry cites the fact that the collection rate has not been lowered or waived since then as a problem. They argue that while the business environment has deteriorated due to intensifying competition with IPTV, subscriber churn, and declining operating profits, the collection rate has remained unchanged.

The association has raised three main legal issues. First, it argues that the government failed to exercise its discretion to determine whether to grant an exemption, even though it was aware of the deteriorating financial condition of cable system operators (SOs). Second, it pointed out that applying the same collection rate as for IPTV despite changing market conditions may violate the principle of proportionality.

They also raised the issue that, unlike regional terrestrial broadcasters, there are no separate criteria for fund reductions established for cable operators (SOs). The Association argued that this could potentially violate the principle of equality.

Separate from this lawsuit, the association is also pushing for improvements to the Broadcasting Development Fund system. Based on the results of a government research project, it aims to revise relevant laws, regulations, and administrative notices by around August of next year.

An association official stated, “First, we plan to have the court rule on the legality of the 2026 Broadcasting Development Fund assessment through this lawsuit, while simultaneously pushing for systemic improvements.”