Research on problems in the Face of Advertisement Business Circle of this nation & its Improvement.

(Centering the report on the openness of advertisement market)

Kim Jae Seok(Department of International Trade The Graduate School of International Trade Hankuk University of Foreign Studies)

The advertisement business circle of this nation is in the face of one of the greatest changes in the advertisement business under the policy of total openness of 1991 advertisemental market.

There is some optimism on the part of advertisement business circle that it can repond to the professionalization as well as internationalization under open policy of advertisement market while the advertisement market within home would not be undermined by cultural differences.

However, there is also some fear that our competitive power might be weakened and economically became subordinate due to mobilization of overwhelming funding power of the foreign agents.

Therefore, it seems to be necessary that at this reality of market openness, there should be more active counter-measures such as promotion of technical development, strengthening better services for the advertisers while Government should enlarge its aspect of advertisement business protection.

Various problems and its improvement measures expected along with the openness of advertisement market are as follows:

The problems include the movement of sponsors, the weakening of competitive power due to increase of various expenses, and the difficulty in seeking for advertisement professionals and its improvement measures. It is expected that we would need improvement of technical and creative level, scientification of advertisement industry including reasonable changes in the organizational operation.

With an exception of economical aspect of such advertisement business circle, there would also exists cultural influences.

It may bring the chaos of the view of value caused by flow of alien culture and considerable counter-function of out own culture by change of spending mode including foreign-made goods preferring.

Therefore, it can be said that the total openness of advertisement market would provide some motivation for the advertisement business circle within home to improve their problems.

First point of issue in the advertisement business circle is that the assuming of leadership or initiative by the agents belonging to financial clique would bring down the quality of creation or service since there is no any danger of movement of advertisers.

Second point if issues is that the advertisement agents are interrupting the development of advertisement business circle because they are mostly involved in transactions based upon unreasonable conditions as a results of concentrating on the outward expansion alone.

The third point of issues is that we are experiencing significant difficulty in seeking for manpower while we are lacking accumulated know-how.

Fourth point of issues is that the scientism and dependability of medium materials are required to measure the advertisement effectiveness.

Fifth point of issues is that the advertisement deliberation for big events are done in an unpublic and single-screening system while the application of the rules and its interpretation is lacking consistency.

The sixth point of issues is those matters related to the ratio of commissions restricting the creativeness and autonomy and the acknowledgement of advertisement agent.

The seventh point of issues is the act of unfairness and disorder interrupting the solid establishment of ABC system.

The eighth point of issues is financial problem in the advertisement industry in which bill-discounting is not possible.

The ninth point of issues is the questions related to the tax system and accounting field.

The improvement measures for these various questions are as follows:

First of all, it should be aimed at fostering the combined service agents through diversification and upgrading of advertisement function.

Secondly, as a means of developing the realm of advertisement, we should explore the fields of public advertisement and overseas advertisement.

Thirdly, the advertisement circle and advertisement-related organization should foster professional personnels by means of maximizing its efficiency through group education.

The fourth point of issues is fixation or stabilization of ABC system and TV watching ratio system.

Fifthly, financial system should be improved through industrial reclassification of advertisement industry.

Sixthly, the taxation system and accounting system of advertisement business circle should be improved.

As a closing recommendation, some sort of support and countermeasures at political level of the Government should be available.