This study investigates Korean advertising practitioners’ perspectives on the Korean
advertising industry, specifically on the in-house advertising structure, its positive
and/or negative effects, and the relationship between an advertising agency and its
clients. Participating in this study are a total of 136 Korean advertising practitioners
from five in-house agencies and four independent agencies. The study results suggest
that in-house agencies threaten the growth and even the survival of medium-sized
independent agencies. The study concludes that to rectify this situation, the
advertising industry should implement its self-regulatory policy. The study also finds
that the relationships between advertising agencies and clients are generally worse
within in-house agencies. To foster and to build a sound relationship, partnership
between the agency and the clients should be built on mutual respect of their tasks.
More managerial implications of the study are provided in discussion.