Jeonbuk Bank Union Opposes Proposed Merger Between JB Financial and BNK Financial

"Regional banks are not merely targets for asset aggregation"

The Jeonbuk Bank labor union has expressed its opposition to the proposed merger between JB Financial Group and BNK Financial Group, as suggested by Align Partners. The union stated that such a merger could undermine the role of regional finance and damage Jeonbuk Bank's identity.

Jeonbuk Bank Exterior.

According to the Jeonbuk Bank union on July 16, Align Partners held a press briefing on July 14 and sent an open letter to the boards of JB Financial Group and BNK Financial Group, requesting that both companies review a potential merger. Align Partners proposed the establishment of a special committee made up of outside directors, a feasibility review through a global investment bank, and a deadline of August 7 for a decision on the review's results.

The union issued a statement asserting that while the proposal emphasizes 'economies of scale' and the efficiency of AI transformation investments, in reality it is more akin to a bid for short-term share price gains and the recovery of investment funds. The union particularly stressed that regional banks are not merely investment targets, but financial institutions deeply connected to the local economy.

The union also criticized the characterization of the merger as a 'market-driven solution' simply because Honam and Yeongnam do not have overlapping business zones, despite having different industrial structures, economic conditions, and financial needs. The union argued that this reflects a lack of understanding of the regions.

The union pointed out that the 'cost synergy' and 'AI transformation investment efficiency' cited by Align Partners could very likely lead to organizational downsizing, job cuts, and a reduction in local branches. It warned that the inconvenience in financial services and the resulting burden on the regional economy could affect not only employees, but also small business owners and local residents.

The union also raised concerns that the opinions of key stakeholders—such as the local community, customers, and employees—have not been adequately considered in the merger review process. It maintained that the feasibility of the merger should not be determined solely by formal procedures like special committees of outside directors or outside consulting.

Jeong Wonho, head of the Jeonbuk Bank union, said, "The owners of JB Financial Group are not a handful of shareholders pursuing only short-term profit, but rather the local community and customers who have built trust over a long period of time, as well as the employees who have worked on the ground." He added, "We will not compromise with financial capital's attempts to undermine the foundation of regional finance and the identity of Jeonbuk Bank."

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