Backlash Against State-Owned Bank Relocation Grows... 2,000 Workers from KDB, IBK, and Eximbank Hold Joint Rally

First Joint Action by Unions of Three Major State-Run Banks
“Concerns Over Undermining Policy Finance Competitiveness”
Financial Sector Union to Hold Strike Authorization Vote on August 12
Potential Strike Early Next Month if Motion Passes

As discussions on the second phase of regional relocation for public institutions gain momentum, resistance from labor unions at the three major state-run banks—Korea Development Bank, IBK Industrial Bank, and Korea Eximbank—has intensified. With the unions from these institutions holding their first-ever joint large-scale rally, and the financial sector’s labor union planning a strike authorization vote, the possibility of escalating conflict between labor and the government over the regional relocation issue is growing.

On the 11th, union members of Korea Development Bank, Industrial Bank of Korea, and Export-Import Bank of Korea held placards during a joint rally opposing the regional relocation in front of the Korea Development Bank headquarters in Yeouido, Seoul. Photo by Yonhap News.

According to the financial sector on August 11, the unions of Korea Development Bank, IBK Industrial Bank, and Korea Eximbank—affiliated with the Korea Financial Industry Union—held a “Resolution Rally to Block the Regional Relocation of State-Owned Banks” on this day at the National Assembly Boulevard near the headquarters of Korea Development Bank in Yeouido, Seoul.

This was the first time the unions of the three major state-run banks have engaged in joint action over the regional relocation issue. The organizers estimated the attendance at around 2,000 people: approximately 900 from Korea Development Bank, around 800 from IBK Industrial Bank, and about 350 from Korea Eximbank. It was reported that some employees working in regional offices also took annual leave to attend.

The unions argued that relocating the state-run banks would undermine the competitiveness of policy finance institutions and trigger personnel outflow. In particular, they contended that if policy finance institutions are separated from the Seoul metropolitan area—a cluster for businesses, financial institutions, and government ministries—the efficiency of both corporate finance and policy finance could be significantly reduced.

Hyunjun Kim, head of the Korea Development Bank union branch, cited the previous administration’s attempt to relocate the bank to Busan and stated his intent to resist regional relocation to the end. Although relocation to Busan was adopted as a national policy task during President Yoon Suk Yeol’s administration, the move was never realized due to the lack of legislative amendments. During this process, staff departures and internal conflicts persisted.

Janghee Ryu, head of the IBK Industrial Bank union branch, also referenced the agreement reached between the Democratic Party and the financial sector labor union during the last presidential election, stressing opposition to the government’s unilateral pursuit of relocation. Eunju Jung, head of the Korea Eximbank union branch, emphasized that state-run banks serve as policy finance institutions supporting industrial growth, filling financial voids, and acting as a safety net during national crises.

Lawmakers from the National Assembly’s Political Affairs Committee were also present at the rally. Hyunjung Kim, a member of the Democratic Party, stated that what regions truly need is not a simple relocation of state-run bank headquarters, but rather the establishment of a system that ensures policy funds are supplied to local companies in a timely manner.

The three major state-owned bank unions announced in a resolution on this day that they would mount a united response if the government pushes ahead with unilateral regional relocation. As the government accelerates the second phase of regional relocation for public institutions, this dispute is expected to continue for the time being. The Ministry of Land, Infrastructure and Transport and the Korea Research Institute for Human Settlements are conducting review work related to the second phase, and it is speculated that as early as next month, the planned new locations for roughly 350 public institutions could be revealed.

Labor-management conflict in the financial sector is also a variable. On August 12, the Korea Financial Industry Union is set to hold a strike ballot on issues such as the 4.5-day workweek, wage increases, and the regional relocation of public institutions. If the motion passes, there is the possibility of a strike beginning early next month.

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