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KBS President Park Min Announces Plan to Cut Labor Costs by 100 Billion Won Due to License Fee Revenue Plunge

KBS President Park Min is sitting at the plenary meeting of the Science, Technology, Information, Broadcasting and Communications Committee held at the National Assembly on the 18th. /yunhap news

KBS President Park Min announced that he is considering a plan to reduce labor costs by 100 billion won if license fee revenue plummets due to separate collection of TV license fees. Ruling party lawmakers also responded, saying it was “shocking.”

Representative Lee In-young of the Democratic Party of Korea asked President Park about preparedness measures after separate collection of license fees at the general meeting of the National Assembly Science, Technology, Information, Broadcasting and Communications Committee (Science, Technology, Information, Broadcasting and Communications Committee) held on the 18th under the agenda of ‘approval of KBS and EBS settlement.’

President Park said, “If separate collection is implemented in earnest (in the worst case), license fee income is expected to decrease by 37%, or about 260 billion won.” Before the separate collection of license fees was implemented, the collection rate was 100% compared to the notice, but it is said to have dropped to about 95% in October of this year after implementation.

President Park said that the first step is to reduce various costs by reducing the budget by 80 billion won, and the second step is to reduce labor and production costs. In particular, he said, “We are planning to reduce labor costs by 20%.”

Rep. Lee said, “KBS labor costs are likely to be 500 billion won, so if you reduce it by 20%, do you mean to subtract 100 billion won?” and asked, “Can this be considered the scale of KBS’s restructuring that will take place next year?” President Park said, “We will have to look at the trend of license fees, but I think we have no choice but to implement such measures if they plummet to the worst level.”

Jang Je-won, chairman of the People Power Party’s National Defense Committee, said, “I was embarrassed when I heard that they would reduce labor costs by 100 billion won next year. Do you think you can reduce labor costs by 100 billion won in one year? “I am very shocked,” he said.

In response, President Park said, “Labor costs include many factors.” It is not a plan to reduce labor costs of 100 billion won just by reducing the number of employees. He said, “It includes many things, including wage and restructuring, honorable retirement, and improvement in wage increases due to improvements in the rank personnel system.”

President Park explained specific details about the 100 billion won in response to a question from People Power Party lawmaker Heo Eun-ah. He said, “If the entire annual and monthly leave allowance, which has been pointed out for several years, is eliminated, a (savings) effect of 18.6 billion won is expected over three years.” He continued, “The wages returned by management is 3.3 billion won, and we expect about 10 billion won due to the suspension of new hiring and natural decrease,” and “We expect a decrease of 12 to 24 billion won due to the voluntary retirement of 100 to 200 people.”

President Park also proposed a 10% wage cut to the union and said that if he gets consent, a savings of 49.5 billion won could be achieved. He said that the total amount was 100 billion won. He said, “Currently, KBS is experiencing a crisis that surpasses the IMF,” and added, “If the consultation with the labor union proceeds smoothly, I believe we can put out the fire and prevent an extreme situation leading to capital erosion.”

In his additional remarks, Chairman Jang said, “I respect the necessity of normalizing KBS management, but the issue of personnel restructuring needs to be very cautious,” adding, “Think carefully about the family problems of the head of the household who lost their job, social cost losses, etc.” .

2023-12-19 07:02:00
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