TV Homeshopping (Image courtesy of Yonhap)
SEOUL, April 15, (Korea Bizwire) — South Korea’s TV home shopping industry continues to face mounting financial strain as broadcasting fees soared to consume more than 70 percent of television sales revenue in 2024, despite a modest rise in overall sales.
According to a report released Monday by the Korea TV Home Shopping Association, the broadcasting fee burden for the nation’s seven major home shopping companies—including CJ OnStyle, Lotte Home Shopping, Hyundai Home Shopping, GS Shop, NS Home Shopping, Home & Shopping, and Gongyoung Shopping—rose to 73.3 percent of TV broadcasting sales last year. That means for every 100 won earned from televised sales, 73 won went to fees.
While total revenue across platforms (TV, online malls, and mobile apps) slightly increased by 0.3% to 5.57 trillion won, television sales fell 3.2% to 2.64 trillion won, continuing a multi-year trend of declining TV reliance. Meanwhile, broadcasting fees remained essentially flat at 1.94 trillion won.
Operating profit for the seven companies collectively rose to 388.8 billion won, up 18.9% from 2023, but still well below the 744.3 billion-won peak recorded in 2020. Since then, profits have been steadily declining, falling to the 500-billion-won range in 2022 and dropping further into the 300-billion-won range last year.
The share of broadcasting revenue in total sales has also continued to fall, slipping from over 50% in 2021 to 47.4% in 2024, signaling a growing reliance on digital platforms.
TV home shopping experienced its golden era from the 1990s through the early 2000s, but the rise of smartphones and mobile commerce over the past decade has eroded its core TV audience. However, companies such as CJ OnStyle, Hyundai Home Shopping, and Lotte Home Shopping posted gains in both sales and profits in 2024 by doubling down on mobile live-streaming initiatives.
The industry, marking its 30th anniversary this year, is calling for urgent reform. “To revitalize the TV home shopping sector, it is critical to establish a more sustainable broadcasting fee system and revise regulations concerning programming, sales, and licensing,” the association said in a statement.
Lina Jang (linajang@koreabizwire.com)
