kh's agency search2013. 4. 2. 15:55

KH's talk on Communications Industry of Korea

As I have worked in the industry for 30 years, I could say something.

1. Chaebol

 Korean conglomerates, so called 'Chaebol', are ruling this industry.

'Cheil Communications'(Samsung's in-house), 'Innocean Worldwide' (Hyundai Automobile's in-house), 'HS Ad' (LG's in-house), Dahong Communications (Lotte's in-house) are the biggest companies and major players in Korea. They have both faces ; agency face and client face.

If we look at Television media spendings, these local Chaebol's in-house agencies have more than 50% share. And other media is in similar situation.

 

2. 'Old Fasioned total service, media commission based agency model'

Korean agencies have enjoyed media commission system for long time under the government owned "KOBACO- Korea Broadcasting Advertising Coporation" monopoly. KOBACO governed terresterial TV, Radio advertising and it guaranteed same media commission and same price to every client and every listed agencies. For agencies, KOBACO was really 'GOOD' big brother.

As new law started, SBS TV started it's media sales rep. , named 'Media Cre8'. So Korea has 2 broadcasting media reps, KOBACO(rep. for MBC TV & Radio, KBS TV & Radio and some religious radio broadcastings) and Media Cre8 (rep for SBS TV & Radio and local channels)

11% commission for TV and 13 % commission for Radio . (normal cases. detail change rule exists)

 

3. Digital, Seperated from the Old Continents

(Will keep writing)

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Posted by KH Han

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