But bright spots remain. Korea's mobile carriers have been engaged in a brand marketing war, which has seen SK Telecom, the leader in the sector, spend four per cent more in Q1 this year than last, for a total 52 billion won in advertising spend. The number two carrier, KTF, raised spending by 23 per cent.
"The telecom sector is a rare case -- it is because of number portability," said Jay Paik, president of Ogilvy & Mather Korea. "This year, I don't see any one sector spending big, although some analyses suggest it may be insurance." However, a social trend affecting beauty and lifestyle products is also expected to have a positive effect on spend levels.
"This is not a fad, it's a lifestyle trend affecting higher-end brands," said Paik.
Q1 adspend data shows eight per cent dip in Korea
Advertising revenues in Korea, the world's seventh largest ad market, sank to 1.5 trillion won (US$1.3 billion) in the first quarter of 2004, an eight per cent drop year-on-year, the Korea Federation of Advertising Associations announced.