Former Bank of Japan Director Inaba Nobuo Appointed as NHK Chairman... Plans to Revise Cost-Cutting Measures

Second Appointment in Financial Sector
Financial Expert Former Director of Bank of Japan
Management Challenges Due to Fee Reduction

Nobuo Inaba, Former Director of the Bank of Japan [Image source: Screenshot from Ricoh Company, Ltd. website]

[Asia Economy Reporter Lee Ji-eun] Japan's private broadcaster NHK's Board of Governors announced on the 5th that it plans to appoint Inaba Nobuo, a former director of the Bank of Japan, as the successor to Chairman Maeda Terunobu, whose term expires next month. Facing a management crisis due to the impact of fee reductions, NHK has appointed financial sector figures with a strong understanding of austerity management as heads for two consecutive terms.

According to a report by Nihon Keizai, if the Board of Governors makes a final decision within the day, Inaba will succeed Chairman Maeda and become the next chairman next month. Inaba graduated from the University of Tokyo in 1974 and joined the Bank of Japan, rising to director in 2004 as a financial expert. After retiring in 2008, he served as a special advisor to Ricoh, a Japanese optical equipment manufacturer, and since June has been the head of the Ricoh Institute of Economic and Social Research.

Inaba is expected to take over the baton of NHK's management reform efforts led by Maeda. NHK decided to reduce reception fees by 10% for both local terrestrial and satellite broadcasts starting October next year, citing public backlash and inefficient management. NHK has lowered fees several times since 2012, but former Prime Minister Suga Yoshihide pressured for further reductions to ease household burdens caused by COVID-19. As a result, the current satellite broadcast fee of 2,170 yen (about 21,200 KRW) will be reduced to 1,950 yen, and the terrestrial broadcast fee will drop from 1,225 yen to 1,100 yen.

NHK expects an annual revenue loss of 45 billion yen due to the fee reduction and plans to embark on large-scale cost-cutting and structural reforms, including channel consolidation. First, it announced plans to merge satellite channels BS1 and BS Premium and reduce business expenses by 55 billion yen next year. Inaba will face the challenge of resolving NHK's management difficulties based on his financial industry knowledge, succeeding Chairman Maeda.

If Inaba assumes office, NHK's chairman will be an external appointee for the sixth consecutive time since Fukuchi Shigeo, formerly of Asahi Breweries, took office in 2008.

Notably, Inaba will be the second chairman from the financial sector following Maeda. Maeda was the figure who merged three banks?Dainichikankyo Bank, Fuji Bank, and Nihonkokyo Bank?to establish Mizuho Financial Group. The Abe Shinzo administration highly valued Maeda's experience in integrating and managing the three banks and appointed him as chairman. Since taking office, Maeda emphasized transforming NHK into a lean organization but was criticized for failing to present concrete alternatives.

The Yomiuri Shimbun explained, "Currently, NHK is trying to expand its internet business sector, raising concerns about management bloat," and added, "A trinity of reforms involving management resolution, fee review, and organizational improvement is required, so the new chairman is expected to shoulder a heavy responsibility."