KDB, IBK, and Eximbank Unions: "Government Must Halt Forced Relocation of Policy Banks"

"Dispersing Financial Institutions Will Undermine Competitiveness"

First Joint Rally to Be Held on August 11

The labor unions of the Korea Development Bank, Industrial Bank of Korea, and Export-Import Bank of Korea—three state-run banks mentioned as candidates for the second round of public institution relocations—have urged the government to immediately halt any consideration of relocating these policy banks to provincial areas.

On August 10, the labor unions of these three major policy banks issued a joint statement, declaring, "We demand the immediate cessation of discussions on forcibly relocating state-run banks, which would destroy financial competitiveness and have a devastating impact on the national economy."

The unions stated, "How does the government expect to compete with cities like Hong Kong, London, Singapore, New York, Shanghai, and Tokyo, which have succeeded in concentrating financial institutions, if it recklessly disperses Korea’s core financial institutions across the country? Even former President Roh Moo-hyun, who led the regional development and public institution relocation initiatives for balanced national growth, never tampered with financial institutions—national assets critical to the nation’s future."

They continued, "Forcibly splitting and relocating policy financial institutions—which require a high degree of professional expertise and nationwide or global networks—to provincial areas would be an economic disaster, undermining the financial ecosystem supporting advanced national industries and small- and medium-sized enterprises."

The unions also argued that the second round of relocations should not proceed without sufficient evaluation of the first round. "Finance is fundamentally different from general public institutions and is an advanced, high-value-added cluster industry," the unions said. "Relocating all public institutions en masse to provincial areas without objective review and scientific evidence is desk-bound policymaking that repeats the mistakes of the past," they criticized.

The unions further demanded, "The President promised during the election campaign to thoroughly analyze the effects of the first round of public institution relocations. This promise must be kept." They added, "Stop the one-sided and forced discussions on relocation that exclude the labor unions representing policy banks, who are direct stakeholders."

Instead of relocating state-run banks, the unions proposed establishing a "comprehensive financial cluster strategy" to promote Korea as a financial hub. They stated, "The outdated notion of sacrificing the financial industry—this nation’s future growth engine—under the pretext of balanced national development must be abandoned." They further warned, "If the government does not heed our demands, we will mobilize all possible means to oppose any forced relocation attempts."

The three policy bank unions plan to hold a large-scale rally near the Korea Development Bank headquarters in Yeouido, Seoul, on August 11. This is the first time that the branches of the Korea Financial Industry Union representing Korea Development Bank, Industrial Bank of Korea, and Export-Import Bank of Korea will hold a joint rally to oppose relocation to the provinces.

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