TBS Faces City Budget Cuts... Calls for Support Even for Employee Severance Pay Emerge

Annual budget relies on 70%, about 40 billion KRW, on grants
Kim Hyunki, Seoul City Council Speaker, "'No retreat' on 'No. 1 party policy'"

The media foundation TBS under the Seoul Metropolitan Government has been pushed to the brink due to the sudden suspension of budget support. Amid this, discussions between the city and the city council regarding severance pay and wages have reached a deadlock, making it likely that the station will effectively face closure.

TBS will no longer receive the subsidy, which accounts for more than 70% of its finances, after the city council decided to abolish Seoul's support starting next year. During the budget review on the 15th, the support plan was not discussed, and it was finally confirmed that the budget for next year will not be allocated.

TBS exterior view
Photo by TBS

Last November, the city council passed an ordinance to abolish the 'Ordinance on the Establishment and Operation of TBS,' which was the basis for Seoul's subsidy to TBS, effective January 1, 2024, as the 'No. 1 agenda item.'

TBS has relied on subsidies amounting to about 40 billion won, which is more than 70% of its annual budget. Previously, Seoul City and TBS requested the city council to extend support for six months to reorganize the organization necessary for independent management in line with the purpose of the abolition ordinance, but this was not accepted.

Accordingly, TBS, which is expected to follow the process of closure, has recently begun restructuring by accepting applications for voluntary retirement. Lawsuits filed by employees such as reporters and PDs were dismissed without hearings on the grounds that they were not parties to the case.

The city considered preparing contingency funds and financial loans as a 'last resort,' but it is known to be impossible because, without a supporting ordinance for the subsidy, it could lead to allegations of breach of duty.

Jung Tae-ik, CEO of TBS (right), and department heads are bowing in greeting after announcing the innovation plan to strengthen fairness at the TBS Radio Public Hall in Mapo-gu, Seoul, last June.
[Photo by Yonhap News]

Kang Cheol-won, Deputy Mayor for Political Affairs, explained that temporary support is necessary for the payment of severance pay and wages and visited the city council on the 15th to appeal to ruling party lawmakers for a final measure. The remaining option is to gather the ruling party's opinions and process it in the form of a member-initiated proposal. A considerable number of city council members showed a positive stance toward extending support for TBS.

Meanwhile, Kim Hyun-gi, chairman of the Seoul City Council from the ruling party, took a firm principled stance on the ordinance to stop tax support for TBS, stating, "Extending support for TBS is a denial of what we have done so far," and emphasized, "The moment the 'No. 1 party agenda' retreats, the presence of the Seoul City Council and incumbent Seoul city council members will seriously fade."

There are also differing voices within the ruling party. Choi Ho-jung, floor leader of the People Power Party in the city council, said, "I hope the city's last request for support to secure minimum wages and severance pay during the liquidation period will not be ignored," and expressed the view that support is necessary, saying, "Our principle was 'Let’s liquidate TBS but protect the employees.'"

This content was produced with the assistance of AI translation services.