[1mm Finance Talk] Financial Sector on Edge Over Possible Regional Relocation of Policy Banks... "Considering Expanded Collective Action"

KDB, IBK, and Exim Bank Unions to Rally in Yeouido with 1,500–2,000 Members

Sharing Opposition Arguments with Unions from Institutions Already Relocated

"Preemptive Warning to the Government" vs. "Hasty Action with a Weak Rationale"... Mixed

As the possibility of relocating public institutions to regional areas is being discussed, tension is rising in the financial sector. Labor unions representing the three major state-run banks—Korea Development Bank, Export-Import Bank of Korea, and Industrial Bank of Korea—have announced plans for a large-scale protest next month. As the government has yet to present a concrete relocation policy, there are concerns that, should such a plan be announced, opposition may spread throughout the financial industry.

According to the financial sector as of July 31, labor unions from Korea Development Bank, Export-Import Bank of Korea, and Industrial Bank of Korea plan to hold a rally on August 11 in front of Korea Development Bank’s head office on Eunhaeng-ro, Yeongdeungpo-gu, Seoul, with 1,500 to 2,000 union members expected to participate. The unions have stated their intention to proceed with the rally as planned, regardless of whether the Ministry of Land, Infrastructure and Transport, the relevant overseeing ministry, announces the specific institutions or timeline for relocation before the protest date.

An official from a state-run bank union said, “We believe the government has not yet made any decisions,” but added, “We are organizing this rally preemptively to raise awareness of the anticipated problems related to relocation and to communicate the employees’ strong opposition in advance.”

If the government formalizes its relocation policy, the state-run bank unions intend to further escalate their response. In addition to the nine unions participating in the ‘Task Force to Block Public Institution Relocation’ under the Korean Financial Industry Union, which itself is under the Korean Confederation of Trade Unions, as well as the National Agricultural Cooperative Federation union, the possibility is open for joint rallies near the Government Complex Sejong and the Blue House.

The unions have also been sharing concerns and coordinated opposition logic with the unions from six institutions that have already been relocated to cities like Busan or Daegu: Korea Technology Finance Corporation, Korea Credit Guarantee Fund, Korea Housing Finance Corporation, Korea Asset Management Corporation (KAMCO), Korea Real Estate Board, and Housing and Urban Guarantee Corporation (HUG).

Opinions within the financial sector are divided. Some view the union’s early warning as a ‘preemptive pressure’—sending a powerful message before any government policy is finalized. Others argue that engaging in collective action before any official announcement may backfire by unnecessarily provoking the government.

A senior official in the financial sector commented, “The reactions and level of opposition among financial regulators, holding companies, and state-run banks all differ,” and added, “It is questionable whether the entire financial sector can sympathize with collective actions such as preemptive rallies.”

It is also noted that this is different from last year’s “black clothes protest” by some 1,500 employees of the Financial Supervisory Service. At that time, the protest followed the formal announcement of the ‘Separation of the Financial Consumer Protection Office’ by the National Policy Planning Committee and the ruling party leadership. In contrast, the current issue regarding state-run bank relocation remains in the realm of rumor and speculation, without any concrete plans being released, making the cause for collective action relatively weak.

In fact, the Financial Supervisory Service union has not begun any separate response procedures, including internal opinion gathering. A union representative stated, “Things are still completely up in the air, and no official opinion-gathering procedures have taken place.”

Nevertheless, anxiety regarding possible relocation is quickly spreading within the state-run banks. There is even speculation within the financial sector that the government could announce a public institution relocation plan as soon as next week. The state-run bank unions have cited several reasons in their opposition to relocating: the expected weakening of policy coordination with the central government due to leaving the Seoul metropolitan area, reduced work efficiency, and the potential for widespread departures of junior employees.

A representative from a state-run bank union stated, “There are rumors circulating that we don’t even know which region we could be relocated to, causing severe unrest among staff,” and added, “We hope the government will listen to the union’s arguments against the move and make a rational judgment, rather than disadvantaging us simply because we are organizing a protest.”

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