SATELLITE & CABLE: Korea liberalising TV market

<p>Parliament's recent approval of a new, integrated broadcasting bill </p><p>looks set to spark a wave of programming and capital alliances between </p><p>Korean and foreign broadcasting companies. </p><p><BR><BR> </p><p>Rupert Murdoch's News Corporation, which is seeking a joint venture with </p><p>DSM, is reported to be in negotiations with the government and other </p><p>relevant parties for a capital investment to establish Korea's first </p><p>satellite digital broadcasting system. </p><p><BR><BR> </p><p>On another front, Korea Telecom is said to be in talks with Japanese and </p><p>European companies to set up a similar strategic alliance. </p><p><BR><BR> </p><p>CNBC, which currently supplies economic and financial news programming </p><p>to MBN, is likely to strengthen its powerbase in the country. Discovery </p><p>Channel, meanwhile, is expected to have in place its own cable or </p><p>satellite channel. </p><p><BR><BR> </p><p>In addition, the largest cable programme provider in Korea is in talks </p><p>to receive programmes from Walt Disney or Fox. </p><p><BR><BR> </p><p>Foreign companies are now able to take a 33 per cent share in Korea's </p><p>cable or satellite channels. Cable system operators and cable relay </p><p>operators can also cross-holding stakes, widening their business </p><p>areas. </p><p><BR><BR> </p><p>Meanwhile, the new bill is likely to attract more cable TV </p><p>subscribers. </p><p><BR><BR> </p><p>JH Cha, an analyst at Hyundai Securites, has forecast that the number of </p><p>household cable subscription will jump almost 40 per cent per year over </p><p>the next two years. There are currently some 2.3 million </p><p>subscribers. </p><p><BR><BR> </p><p>Because of the large number of subscribers, the country's largest </p><p>shopping channel, LG Home Shopping, will likely see net profits soaring </p><p>about 175 per cent this year on the back of a 57 per cent surge in </p><p>sales. </p><p><BR><BR> </p>