"Hollywood is just spineless en masse and it really felt like this is a really clear indication that we aren't the cool club anymore," Carrey told King.
He then said Smith deserved to be arrested and sued over the assault.
"I'd have announced this morning that I was suing Will for $200 million because that video is going to be there forever, it's going to be ubiquitous," Carrey claimed.
"That insult is gonna last a very long time," he continued. "If you want to yell from the audience and show disapproval or say something on Twitter [that's OK, but] you do not have the right to walk up onstage and smack somebody in the face 'cos they said words."
When King suggested the incident had "escalated", Carrey responded, "It didn't escalate, it came out of nowhere because Will has something going on inside him that's frustrated."
Carrey has met Smith several times, and Carrey said he wished no ill will towards the actor.
Jim Carrey has condemned Will Smith's actions at the Oscars. Photo / Getty Images
"I wish him the best, I really do. He's done great things. But that was not a good moment. It cast a pall over everybody's shining moment.
"It was such a selfish moment that cast a pall over the whole thing."
Smith stormed the Oscars stage and struck Rock in the face after the comedian made a joke in poor taste about Smith's wife Jada Pinkett Smith.
Rock had compared her to G.I. Jane, referencing her bald head - but she shaved her head last year because she has alopecia.
"Keep my wife's name out of your f***ing mouth!" Smith shouted twice after returning to his seat.
Minutes later, he scooped up the Best Actor Oscar.
He apologised to the Academy and the other nominees during his acceptance speech. He did not mention Rock at the time, but has since issued a formal apology including his name.
The Academy has said it is investigating the assault in a "formal review" that will "explore further action and consequences".
