The Korea Sports Association has established a subsidiary company dedicated to marketing and is pursuing to increase profits. An official from the Korea Sports Association decided to promote the establishment of a marketing company in order to provide a foothold for financial independence, which is the wish of the Korea Sports Association. In particular, at the time of the Tokyo Olympics next year, aggressive marketing will maximize earnings. On the 29th, it was reported to the directors through the Board of Sports Council."

The decisive moment for the Korean Sports Association to pursue the establishment of a marketing company is that it earned more than 80 billion won through the 2018 Pyeongchang Winter Olympic Games and was able to increase profits. The Sports Association secretly signed the Joint Marketing Program Agreement (JMPA) in August 2011 with the PyeongChang Organizing Committee, a month after successfully winning the PyeongChang Winter Olympics.

In exchange for handing over all the marketing rights of the National Olympic Committee (NOC) to the Pyeongchang Organizing Committee, such as the portrait rights, intellectual property rights, and the use of insignia held by the Korea Sports Council, we have agreed to receive 9.28% of the total sponsorship amount of the Pyeongchang Organizing Committee. As the PyeongChang Organizing Committee secured a total of 86.2 billion won in marketing profits at the Winter Olympics and Paralympic Games, the Sports Association won 81.8 billion won (59 billion won in cash, 211 billion won in cash), which is 9.28% of the 83.2 billion won.

Now, the eyes of the athletic meeting are aiming at two major events: the Tokyo Olympics in July next year and the Beijing Winter Olympics in February 2022. The two major Olympics, which are geographically close to Korea, are a great opportunity to make big money, more precisely, to be missed by the sports team. Therefore, it is time to do a lot of work, such as finding a new sponsor quickly and signing a large sponsorship contract.


Although it is urgent to establish an effective marketing plan, there are currently no departments dedicated to marketing at the Korea Sports Council, and there are only a few employees in charge of marketing under the Ministry of Budget. Accordingly, the Athletic Association decided that it would be better to open a large-scale profit business by establishing a separate subsidiary rather than creating one marketing department from a long-term perspective.

The biggest question is whether the Ministry of Culture, Sports and Tourism, a senior institution, will authorize the establishment of a marketing subsidiary of the Korea Sports Council. The Korea Sports Association is another public institution that receives government budget support. It is a matter of legal and emotional question whether other public institutions can establish a for-profit subsidiary or, in other words, make money.

In response, Oh Ji-yoon, manager of marketing at the Korea Sports Association, said, “The IOC, a non-profit organization, is also legally responsible for Olympic broadcasting relay rights, Olympic partnerships, program development, sales, and management through a subsidiary called TMS (Television Marketing Services). I don't think there will be any major problems."

Oh Ji-yoon, manager of the Pyeongchang Organizing Committee who has been in marketing for a year and a half in the International Olympic Committee (IOC), said, “We are doing sports marketing in other countries. If it is established, it will be able to support not only profitable businesses such as sports association sponsorships, licenses, digital marketing, but also the development of marketing rights of affiliates and player management.”

The Korea Sports Association has virtually received 90% of the annual budget from the government, so it could not escape the influence and influence of the Ministry of Culture, Sports and Welfare. Chairman Lee Ki-heung of the Korea Sports Association, insisting in 2016, emphasized autonomy through financial independence, and pledged to include in the National Sports Promotion Act the provision of distributing 50% of the annual proceeds of sports promotion voting rights called sports toto to the sports association.


As a result, however, this has not been achieved so far, and the structure of the Ministry of Education, Sports, and Welfare continues to be controlled. It is worth noting whether a marketing company affiliated with the Korea Sports Association will be established within this year, or if it is established, how much income the sports association will earn in the economic situation that has been slumped with Corona 19.

(Photo = Yonhap News)