Countdown to City Support Suspension... Privatization Also Facing Difficulties
"Must Avoid a Situation Where 250 Employees Lose Their Jobs"
The Seoul Metropolitan Government's suspension of support for the media foundation TBS is imminent. With the difficulty of finding a new buyer, TBS faces a challenging future. On the 26th, Yonhap News reported that the ordinance concerning the establishment and operation of Seoul TBS will be abolished at the end of this month, and the city's funding support will be cut off.
TBS was originally an affiliated organization under the city but was changed to a Seoul city-funded institution in February 2020 during former Mayor Park Won-soon's tenure. Since then, voices calling for the suspension of city support have increased due to controversies over biased broadcasting in the program "Kim Eo-jun's News Factory."
A city official stated, "There are no administrative measures the city can take regarding support for TBS," adding, "It is certain that no further city budget will be invested." Although an additional supplementary budget is expected to be prepared soon, the ordinance that provides the basis for supporting TBS has been abolished, so the city cannot provide funding to TBS. There was once a suggestion to propose a new ordinance temporarily supporting TBS until the 27th of this month, which is 15 days before the start of the Seoul Metropolitan Council session on June 10. However, the city is negative about this approach, and no new ordinance has been proposed.
Currently, several media companies, including Hankyoreh Newspaper and MBN, as well as securities-focused YouTube channels, have expressed interest in acquiring TBS. The sales agent, Samjong KPMG, will compile the companies interested in acquisition and notify TBS by the end of this month. However, the privatization of TBS is expected to face difficulties. The buyer must guarantee employment for about 250 TBS employees, and it is uncertain whether commercial advertisements will be allowed on TBS's radio channels after privatization, which reduces the motivation to actively participate in the acquisition. Some predict that the acquisition battle will only begin in earnest after the workforce is reduced through employee retirements. The option to separate TBS's regular radio broadcasts and cable channels for sale is also considered unrealistic because it would require establishing a separate corporation.
To avoid the disappearance of an entire media company and the loss of jobs for 250 employees, the city is also considering the alternative of converting TBS into a city-run business office. Since the bias controversy has decreased following Kim Eo-jun's departure from News Factory in December 2022, there is an opinion that if a suitable buyer does not appear, the city may operate TBS again in the form of a business office. However, this would require approval from the city council.
On the afternoon of April 22, in front of the Seoul Metropolitan Council main building in Jung-gu, Seoul, members of the TBS Labor Union and the TBS branch of the National Union of Mediaworkers held a press conference regarding the ordinance to abolish TBS, holding placards. [Image source=Yonhap News]
Since both the sale and conversion to a business office are difficult to carry out in the short term, the city may pursue a plan to propose a new ordinance temporarily supporting TBS after the new leadership of the Seoul Metropolitan Council is formed in June. Another option being considered is that if TBS closes and returns its frequency to the Korea Communications Commission, the frequency could be auctioned off.
A Seoul city official said, "The city tried to push an ordinance to extend support for TBS by three months, but it was not discussed in the council," adding, "We are looking for ways to resolve the issue before the suspension of support becomes prolonged." It is known that TBS currently holds about 2 billion won in funds, which is just enough to maintain broadcasting functions for about two months.
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