Press Release No. 519, Issued on 26 Apr. 2007

Seoul YMCA Citizens’ Broadcasting Center ①

Commercial voice advertising in Seoul Metro trains needs to be abolished.

Problematic commercial voice advertising in Seoul Metro trains.
Results have come out with regard to a Seoul YMCA citizen’s request for audit.
“Concluding that it disrupts the public interest and causes inconvenience to Seoul’s citizens, the Seoul Metropolitan Government has recommended a review of the continuance of commercial voice advertising.”
“Commercial voice advertising in Seoul Metro trains needs to be completely abolished, and additional plans need to be cancelled.”

Convinced that commercial voice advertising in Seoul Metro trains disrupts the public interest and causes inconvenience to Seoul’s citizens, the Seoul YMCA Citizens’ Broadcasting Center has requested the Seoul Metropolitan Government to conduct an audit on January 17, 2007. Having received a number of requests for rectification of the commercial voice advertising on Subway Line No. 2 from complaining citizens, Seoul YMCA Citizens’ Broadcasting Center has requested an audit on the appropriateness of commercial voice advertising in Seoul Metro trains as well as on the purpose, intentions, operational status and profits of the said advertising.  
Regarding the request for an audit, the Seoul Metropolitan Government has announced that it “recommended a review of the continuance and expansion of commercial voice advertising based on its conclusion that the commercial voice advertising in the trains on Subway Line No. 2 disrupts the public interest and inconveniences citizens”.  

Currently, it takes 1 hour and 27 minutes to travel full circle on Subway Line No.2, and the cycle of commercial advertising (lasting 131 seconds), which mainly concerns language schools, recruiting websites and cosmetic surgeries, is transmitted 14 times in conjunction with train arrival comments. The advertising fees paid to Seoul Metro total 612 million won for Subway Line No. 2, while a total of 1.149 billion won is paid to Subway Lines No. 1, 2, 3 and 4. In addition to that, the announcement system (equipment, network and servers) belongs to Seoul Metro. Seoul Metro planned the advertising in September 2005 to finance the improvement of the existing announcement system, and since starting with Subway Line No. 2 in April 2006, it has planned to expand the commercial broadcasting on Subway Lines No. 1 through 4 by 2010.  

At the request of a number of citizens, the Seoul Metropolitan Government conducted an audit on Seoul Metro for 78 days from January to April, the results of which are as follows.   

① Recommendation of a review of whether to continue the commercial voice advertising in trains on Subway Line No. 2

Seoul Metro received the announcement system as a gift in an effort to improve management - which had suffered due to high interest repayments in the wake of various construction projects and the improvement of services - and offered rights to commercial voice advertising in return. However, since the announcement system is a core device of a subway train, it should be replaced using the Seoul Metro budget. As such, a review of whether or not to continue with advertising that does not serve the public interest has been recommended.

② Recommendation of a review of whether to expand commercial advertising on trains running on Subway Lines No.1 to 4

Seoul Metro plans to expand its commercial voice advertising on Subway Line No. 2 to Subway Lines No.1 through 4. However, since there have been some complaints to the effect that the advertising disrupts the public interest of Seoul Metro, and since the advertising fees do not make a dramatic contribution to improving management and the advertising effect is not so great in consideration of the heavy sacrifice of the right not to be disturbed on the part of Seoul’s citizens, a review has been recommended.

③ Recommendation to rectify the inappropriateness of surveys of public opinion to implement commercial advertising and to prevent recurrence

In a survey conducted by Seoul Metro, 88.7% (314 persons) of respondents (354 persons) spoke up in favor of advertising; however, the survey actually referred to public advertising rather than commercial advertising, so it was recommended that a recurrence of such a misleading survey be prevented.

④ Recommendation for improved operation of Korea Advertising Review Board (KARB)

Metro KARB is an autonomous regulator which aims to promote the social responsibility and confidence of metro advertising. Despite numerous media reports and complaints about the commercial voice advertising, it never requested a review, so the improvement of its operation was recommended.   

Unlike visual advertising such as billboards, voice advertising in a closed subway train is forced on metro users and thereby causes serious inconvenience, so much thought needs to be given to its purpose and appropriateness. In particular, in the case of commercial advertising (which does not involve the provision of useful information to consumers), it serves neither the public interest nor the purposes of a major public transportation system, and inconveniences citizens by causing confusion with regard to subway exits. In this regard, the results of the audit are welcomed, and it has been recommended that Seoul Metro suspend the commercial advertising as soon as possible.  

▶ Inquiries and contact: Hi-Kyung Kim (725-1400) 

Seoul YMCA Citizens’ Broadcasting Center ②

Announcement issued to persuade schools and educational authorities to participate in the group buying of school uniforms.   

Group buying by schools is recommended for those middle and high school students who are about to buy summer season school uniforms.
The commitment of some parents to the group buying of school uniforms does not represent a fundamental solution.
Schools and educational authorities need to go in for group buying as they did for textbooks and school albums.  

Problematic school uniform prices whip up a controversy every new season and still haunt many who are about to purchase summer season school uniforms. Early this year, expensive school uniforms priced at almost 1 million won in certain schools caused a controversy, while school uniforms in a number of other schools including special purpose schools priced at 400,000 to 500,000 won focused the attention of many on the problem of expensive school uniforms. As some groups moved to denounce these exorbitant prices, and the Fair Trade Commission (FTC) opened an investigation into price fixing, the Ministry of Education announced that it would encourage middle and high schools to implement group buying and educate parents. As yet, however, the situation remains unchanged.   

The group buying of school uniforms, a phenomenon that started in 1999, involved a coordinated effort on the part of consumers (parents) who wanted to reduce the prices of school uniforms. Such related associations as the YMCA, the Parents’ Association for Good Education and the Korean Teachers’ Union participated in the move, which eventually developed into the Nationwide Network for the Group Buying of School Uniforms, convincing a lot of parents to take part under the slogan “School Uniforms at Half Price”. The campaign became made a success thanks to the many dedicated parents who did their best to overcome such difficulties as the passive attitude of the schools and stubborn interference from school uniform manufacturers. With the movement’s 10^th anniversary just around the corner, should the issue of group buying be dealt with by consumers (parents) alone?

It is not really desirable to resolve the problem through the group buying of school uniforms on the part of parents. It is extremely difficult to pursue group buying by contacting parents to promote group buying without knowing who is going to be placed in which school, especially when faced with the indifference of schools and the educational authorities and interference from the manufacturers, or to persuade parents to take part in the group buying in the view of the difficulties in forecasting demand and making contracts with the producers through public bidding. Although group buying can be successful in a given school year, the same process needs to be repeated all over again the following year in order to persuade the parents of new students to participate in it. So far, no institutional system or support has emerged to help implement group buying more conveniently through accumulated competence.  

The problem of expensive school uniforms needs to be resolved for the benefit of consumers. It needs to be understood as a consumer problem and resolved from the consumers’ viewpoint. The school uniform market is dominated by 3 large companies that control prices, while the millions of consumers concerned (parents or middle and high school students) are dispersed nationwide. Since almost all middle and high school students wear school uniforms, the huge demand for school uniforms is systematically secured every year.

A structure characterized by a small number of large producers dominating a market consisting of a large number of dispersed consumers is vulnerable to price fixing, and the consumption power of consumers is likely to be distorted through advertising that strongly influences the consumers. In particular, the school uniform market, in which adolescents are the final consumers, is likely to be influenced by such external elements as star marketing and emphasis on a slim body; as such, the school uniform market cannot be understood without understanding these phenomena. This problem cannot be resolved by these dispersed consumers, particularly dedicated consumers (parents). It is time for the school authorities to take charge and resolve the problem systematically.     

As with school textbooks, it is natural for a school to select and purchase school uniforms. Many schools are totally indifferent to the group buying of school uniforms or look on with folded arms while otherwise taking an active attitude in the group buying of many other items including training suits, albums and school trips. Why are schools that are proactive in collectively purchasing other essentials passive when it comes to the need for the group buying of school uniforms? In some schools, a rebate on the adoption of teaching materials has led to controversy, and students and parents have raised objections with regard to the purchase of training suits or school trips. These things happened not as a result of group buying but because of a lack of participation on the part of parents and students or a lack of transparency in the process. The group buying of school uniforms needs to secure transparency by encouraging the proactive participation of parents under the leadership of the school authorities.

If all schools nationwide push for the group buying of school uniforms, it will be possible to slash prices in half. Like textbooks, school uniforms are essential materials for middle and high school students. It is possible to buy quality products at reasonable prices by grouping the consumers (students and parents) who deal with a small number of producers (school uniform manufacturers) by school to overcome the imbalance. The educational authorities need to establish a School Operation Committee and create a system that guarantees the participation of parents in order to institutionalize the group buying of school uniforms under the leadership of school principals. The authorities need to institutionalize group buying in principle, and if any students (parents) do not want to go along with it, they will of course be permitted to make their purchase separately. It should be possible to introduce a campaign to wear a used school uniform and encourage students to buy recycled school uniforms at a Green Store.   

May is the month when middle and high school students buy school uniforms; it is the time when many parents prepare for the group buying of summer time school uniforms or agonize over the matter. The school authorities should not force the parents of new students to deal with the issue of school uniforms any longer. They should establish a parental - participatory body for enhanced transparency that deals directly with the group buying of school uniforms. The government authorities and educational circles are urged to channel their energy into providing institutional support to resolve this issue.

▶ For inquiries, please contact: Hi-kyung Kim (725-1400)