By Kim Tae-gyu
Staff Reporter

Fair Trade Commission Chairman Kang Chul-kyu said on Wednesday the screen quota system needs to be overhauled due to its anti-competition nature and that the government will draft a revision bill within this year.

This brightened the possibility that Korea and the United States will sign a long-awaited bilateral investment treaty (BIT), which has been put on the backburner for the past six years.

Kang said in during an interview yesterday with domestic cable TV broadcaster MBN, ``Korea’s film market changed drastically of late as evidenced by the fact that local films account for more than 50 percent of the market.’’

But he was cautious about the thorny issue, saying, ``We will decide how to revise it through consultation with related ministries in light of the system’s cultural and diplomatic facets.’’

Kang explained the revamp of the screen quota system is part of the government’s large-scale deregulation plan to scrap competition-restrictive barriers.

``I reported our firm intent to abolish all anti-competitive rules to President Roh Moo-hyun late last year, and Prime Minister Goh Kun has recently endorsed our project,’’ Kang said.

But it is still unclear whether the FTC’s plan will be realized in view of strong opposition from local filmmakers.

The United States has showed willingness to sign a BIT with Korea if Seoul reduces, not necessarily scraps, the screen quota. Six years ago, Korea and the U.S. agreed to sign the BIT at the suggestion of then-President Kim Dae-jung. But the BIT has been put off due to the screen quota system.

Kim Jae-chul, president of the Korea International Trade Association, yesterday called for an early signing of the BIT for more bilateral investment and trade flow.

Late last year, a top presidential secretary said the government was considering easing the system for passage of the BIT.

Currently, Korean theaters are required to show domestic films 40 percent-plus of the time under the screen quota system, which has been in effect since the early 1990s.

The screen quota system has played a key role in shielding Korean movies from the heavy competition of foreign blockbusters over the past decade.

voc200@koreatimes.co.kr