🚨 TV License Fee Integration Law: Issues in Securing Public Broadcasting Finances

Today Korean Social News | 2025.04.16

📌 KBS "Public Broadcasting Is Collapsing"... Management and Labor Union Urge Restoration of Integrated License Fee Collection

💬 KBS management, labor union, and professional organizations have urged the National Assembly to restore the integrated collection of license fees. Since former President Yoon Seok-yeol amended the enforcement decree in 2023, initiating separate collection, KBS's finances have rapidly deteriorated, raising concerns about the broadcaster's ability to fulfill its public functions. KBS has promised to rebuild trust and implement reforms while appealing for bipartisan cooperation from the National Assembly.

Summary

• The TV License Fee Integration Law is a system designed to secure stable funding for public broadcasting (KBS).
• KBS finances are deteriorating as the collection method has changed from integrated collection with electricity bills to separate collection.
• Social discussion is needed regarding public broadcasting's responsibilities and funding methods.

1️⃣ Definition

TV License Fee Integration Law refers to the legal framework for collecting KBS (Korean Broadcasting System) license fees together with electricity bills. Simply put, it is a system that allows households with televisions to pay public broadcasting viewing fees together with their electricity bills.

This system was established to secure stable funding for public broadcasting and reduce collection costs, but it has recently been changed to a separate collection system, sparking various social debates.

💡 Why is it important?

• License fees are the main source of funding for public broadcasting, and the collection method directly affects broadcasting independence and public service.
• Whether fees are collected in an integrated way is a key factor determining the payment rate and KBS's financial situation.
• The role of public broadcasting and its funding structure are core issues related to media diversity in a democratic society.

2️⃣ Current Status and Characteristics of the License Fee System

📕 History and Current Status of the License Fee System

• The license fee system was introduced to secure funding for public broadcasting. Korea's public broadcasting license fee system was first introduced in 1963, and since 1994, fees have been collected together with electricity bills through Korea Electric Power Corporation. The current license fee is 2,500 won per month, which has not increased for over 40 years since 1981. This is very low compared to other developed countries such as the UK (about 20,000 won), Japan (about 13,000 won), and Germany (about 25,000 won). Until 2023, approximately 23 million households paid the license fee, providing KBS with annual funding of about 650 billion won. However, when former President Yoon Seok-yeol amended the enforcement decree in 2023, changing from integrated to separate collection, the payment rate dropped dramatically, worsening KBS's financial situation.

• The collection method has a significant impact on public broadcasting operations. Integrated collection has the advantage of high efficiency as it allows payment without separate bills or additional payment procedures. It also helps public broadcasting fulfill its public duties without being overly concerned about ratings by securing stable funding. On the other hand, separate collection is sometimes advocated as respecting viewer choice but can lead to lower payment rates and increased collection costs. Overseas, various forms of public broadcasting funding exist, such as the TV license fee in the UK, household contributions in Germany, and reception contracts in Japan. The common point among countries is that they establish stable funding structures to ensure the independence and public service of public broadcasting.

📕 Issues with Integrated License Fee Collection

• Arguments for and against integrated collection are in conflict. Supporters of integrated collection argue that stable funding is essential for public broadcasting to fulfill its public duties. They also emphasize that integrated collection reduces collection costs, increases efficiency, and ensures broadcasting diversity by differentiating public from commercial broadcasting. Opponents criticize it as unfair, limiting viewer choice and forcing collection. They also question KBS's fairness and trustworthiness, pointing out insufficient public services corresponding to the fee. Particularly with the increase in households without TVs due to OTT services and changing media environments, issues of fairness in the fee imposition criteria are also being raised.

• KBS is facing financial difficulties since separate collection began. Since separate collection began in 2023, KBS's license fee revenue has decreased by approximately 40%. As a result, KBS is implementing austerity measures including staff reductions, production budget cuts, and program cancellations. Particularly, public programs such as educational content, documentaries, and regional broadcasting that should be pursued beyond ratings competition are being reduced. There are also concerns that increased dependence on commercial advertising could weaken KBS's identity and independence as a public broadcaster. KBS management and labor union are warning of an existential crisis for public broadcasting and strongly demanding the restoration of integrated collection. However, it is also pointed out that without KBS's reform and trust recovery, it would be difficult to gain viewer support.

Key Issues Related to Integrated License Fee Collection

1. Public Broadcasting Independence: The impact of funding structure on editorial independence
2. Viewer Choice: Mandatory payment vs. voluntary choice issue
3. Collection Efficiency: Cost-saving effects and administrative efficiency of integrated collection
4. Public Duty Performance: Relationship between stable funding and public broadcasting's social role
5. Media Environment Changes: Appropriate public broadcasting funding models in the OTT era
6. Fee Adequacy: Need to update the license fee amount, frozen for 40 years
7. Transparency and Accountability: Disclosure and evaluation system for KBS's use of license fees
8. Equity Issues: Exemption criteria for households without TVs
9. Political Independence: Measures to block political influence on the license fee system
10. Public Trust: Challenges in restoring KBS's fairness and trustworthiness

3️⃣ Challenges and Development Plans for the License Fee System

✅ The Role of Public Broadcasting and Its Funding Structure

• Public broadcasting plays an important role in modern democratic society. Public broadcasting prioritizes public values over commercial profit-seeking and performs various social functions. First, it serves as a watchdog for democracy by providing fair news and current affairs programs based on political independence. Second, it provides services to areas that commercial broadcasting might neglect, such as marginalized groups, local communities, and minorities. Third, it contributes to promoting cultural diversity and forming national identity. Fourth, it helps citizens' intellectual growth through high-quality educational programs. Fifth, it promptly delivers essential public information in disaster situations. To effectively perform these roles, a funding structure independent from political powers and commercial interests is essential. The license fee, directly connected to viewers, is considered a key element in guaranteeing the independence of public broadcasting.

• A sustainable public broadcasting funding model is needed. Discussion is needed on new funding models considering changes in the media environment and viewer demands. First, updating the license fee amount should be considered. The monthly fee of 2,500 won, frozen for over 40 years, does not reflect inflation and increased broadcasting production costs. Second, the criteria for imposing the fee need to be reconsidered. New criteria considering access to public broadcasting content through various digital devices beyond TV ownership are being discussed. Third, an appropriate ratio for a mixed funding model should be established. Funding stability and independence can be secured through a balance of various revenue sources including license fees, advertising revenue, and content sales. Fourth, the independence of the fee-setting process should be strengthened. Fee-setting methods through an independent body away from political influence are being considered. Fifth, expanded viewer participation and enhanced transparency are needed. Viewer trust should be increased through strengthening the role of viewer committees, disclosing license fee usage, and performance evaluation.

✅ Improvement Plans for Integrated License Fee Collection

• Various measures are being discussed to improve the fairness and efficiency of the license fee system. Various proposals are being made to improve the license fee system. First, there is an 'opt-out' approach that maintains the advantages of integrated collection while respecting viewer choice. This method basically uses integrated collection but allows viewers who don't want to pay to be exempted through a separate application. Second, the economic burden can be reduced by expanding fee reduction systems for low-income groups and socially vulnerable people. Third, there is a proposal to establish an independent management and supervision body to strengthen transparency in fee collection and usage. Fourth, diversifying the fee system to provide options according to viewer circumstances is also being considered. Fifth, introducing new payment methods (mobile payment, automatic transfer, etc.) using digital platforms to increase convenience is also being discussed.

• Public broadcasting's trust recovery and innovation are essential. For the license fee system to gain viewer support, KBS's own reform and innovation must go hand in hand. First, internal systems for strengthening fairness and balance in programming and reporting need to be reorganized. Institutional mechanisms to maintain political neutrality and balance must be established. Second, content competitiveness enhancement and digital innovation are needed. Ways to provide public services through various platforms in line with the changing media environment should be sought. Third, management efficiency and increased transparency are important. Efficiency in organizational structure and budget execution should be improved, and license fee usage details should be transparently disclosed. Fourth, expanded viewer participation and enhanced communication are needed. Channels for actively collecting and reflecting viewer opinions should be expanded. Fifth, producing programs centered on public values differentiated from commercial broadcasting is important. Focus should be on producing high-quality public content that allows viewers to feel the value of their license fee.

4️⃣ Related Terms Explanation

🔎 Public Broadcasting

• Public broadcasting is a broadcasting system with a public character operated for the public good.
• Public broadcasting refers to a broadcasting system owned or operated by the state or public institutions, prioritizing public purposes over commercial profit-seeking. Korea's representative public broadcasters are KBS and EBS, while overseas examples include the BBC in the UK, NHK in Japan, and ARD in Germany. Key characteristics of public broadcasting include: first, funding through license fees or public funds; second, stricter public duties than commercial broadcasting; third, obligation to provide universal service; and fourth, pursuit of political independence and diversity. Public broadcasting plays a role in representing diverse voices in democratic society, providing high-quality educational and cultural programs, and forming a public sphere free from commercial interests. However, there is active discussion about redefining the status and role of public broadcasting in today's multi-channel, multi-media environment.

🔎 Editorial Independence

• Editorial independence refers to the freedom of the press to determine content autonomously without external pressure.
• Editorial independence means the freedom of broadcasting or media to decide program scheduling and content autonomously without improper interference or pressure from external forces such as government, political parties, advertisers, or owners. This is an essential condition for pursuing truth and performing the monitoring function, which are fundamental values of press and broadcasting. Core elements of editorial independence include: first, independence from political powers; second, freedom from commercial interests; third, exclusion of improper interference from owners; and fourth, guaranteeing autonomy in reporting and coverage. For public broadcasting, stable license fee funding is considered an important factor supporting editorial independence. If dependence on advertising revenue increases, the likelihood of being influenced by commercial logic grows, and if dependent on government budget, vulnerability to political pressure may increase. Various mechanisms such as programming committees, independent board composition, and transparency in the appointment process of presidents are used to institutionally guarantee editorial independence.

🔎 Media Public Interest

• Media public interest refers to the public values and social responsibilities that media and broadcasting should pursue.
• Media public interest means the principle that media and broadcasting should function for the public good of the entire society beyond private interests or specific group interests. Broadcasting, which uses scarce public resources like radio waves, is required to have a higher level of public interest. Key components of media public interest include: first, balanced expression of diverse opinions and values; second, representation of minorities and socially vulnerable groups; third, pursuit of educational and cultural values; fourth, contribution to democratic public opinion formation; and fifth, support for local community and community development. Public broadcasting is a representative institution for implementing such media public interest, and the license fee is the financial foundation for maintaining public interest. In recent digital media environments, new challenges and issues for media public interest are emerging due to the expansion of platform influence and algorithm-based content consumption. Accordingly, discussions about new forms of public media models beyond traditional public broadcasting are also becoming active.

5️⃣ Frequently Asked Questions (FAQ)

Q: On what basis is the license fee imposed, and who is exempt?

A: The license fee is basically imposed at 2,500 won per month on households or businesses with TV receivers. The specific criteria for imposition and exemption are as follows. First, the basis for imposition is whether a TV receiver is owned. If you don't have a TV receiver, even if you watch TV programs on other devices like computers or smartphones, the license fee is not imposed. Second, even if you own a TV, you can be exempted from the license fee by sealing the receiver. Sealing can be requested from Korea Electric Power Corporation or KBS, and the sealed status is regularly checked. Third, according to the law, the following are exempt from the license fee: ▲ Basic livelihood security recipients, ▲ National merit recipients with difficult living conditions, ▲ Visually or hearing impaired persons, ▲ Near-poverty class, ▲ Single-parent families, ▲ Disabled persons under 18 years old, ▲ Basic pension recipients over 65 years old, ▲ Small business owners with difficult living conditions. Fourth, even if there are multiple TVs at one address, the license fee is imposed only once. However, for businesses, it can be imposed separately by branch. Fifth, if not paid, a reminder will be sent, and continued non-payment may result in late fees. Detailed inquiries about the license fee can be confirmed through the KBS License Fee Call Center (1588-1801).

Q: How do other countries operate public broadcasting license fees?

A: Various countries operate public broadcasting license fees in different ways, and examples from major countries are as follows. First, the BBC in the UK raises funds through a 'TV License Fee.' It is about 159 pounds per year (approximately 260,000 won in Korean currency) and is imposed on all households using broadcasting reception devices for TV viewing purposes. Recently, the license fee obligation has been extended to online service users such as BBC iPlayer. Second, Germany has imposed a 'broadcasting contribution' on all households and businesses regardless of TV ownership since 2013. It is 18.36 euros per month (approximately 25,000 won in Korean currency), reflecting the expansion of public broadcasting's digital services. Third, Japan's NHK operates a 'reception contract' system. Households with TVs must contract with NHK and pay a license fee (approximately 1,300 yen per month, about 13,000 won in Korean currency). Although criticized for weak enforceability, recent court decisions have strengthened the payment obligation. Fourth, France operated an 'audiovisual public fee' until 2022 but replaced it with general taxes from 2023. Fifth, Finland introduced a 'public broadcasting tax' proportional to income, reducing the burden on lower-income groups. Sixth, Switzerland introduced a system where businesses pay differential 'media fees' based on sales from 2019, imposed on all households. In this way, each country is continuously improving its public broadcasting funding system to match the changing media environment, commonly emphasizing securing stable funding for the independence and public service of public broadcasting.

Q: What reforms has KBS promised if integrated license fee collection is restored?

A: KBS has proposed various self-reform measures for the restoration of integrated license fee collection. The main contents are as follows. First, it has promised to strengthen fairness and balance in reporting and programming. It stated it would strengthen the authority of the 'Programming Committee,' an internal monitoring body, and build a production system where diverse opinions can be reflected. Second, it promised to introduce a 'Viewer Participation Budget System' to increase transparency in license fee usage. The plan is to disclose major budget execution details to viewers and establish a process for reflecting viewer opinions. Third, it is pursuing service expansion through digital innovation. It stated it would build an environment where KBS content can be accessed without a TV by strengthening mobile and online platforms. Fourth, it promised internal innovation through organizational streamlining and management efficiency. It plans to transform into a 'small and efficient public broadcaster' through executive and manager reduction, merging of unnecessary organizations, and strengthening production cost transparency. Fifth, it presented strengthening public services differentiated from commercial broadcasting. It stated it would expand investment in market failure areas such as education, documentaries, regional broadcasting, and services for marginalized groups, and increase production of programs prioritizing public value over ratings. Sixth, it also proposed installing an independent 'License Fee Management Committee' to increase transparency in fee determination and management and block political influence. There are observations that for these reform plans to be practically implemented, legislative and institutional support is needed along with voluntary innovation will from KBS members and continuous attention and monitoring from viewers. KBS is expressing its will to restore trust as a public broadcaster and increase the value of the license fee through these reforms.