Financial Union Warns of Full-Scale Action by 100,000 Financial Workers if Government Pushes Ahead with Policy Bank Relocation

Press Conference Opposing Relocation of KDB, IBK, and Eximbank

"Presidential Election Policy Agreement Virtually Ignored"

Union Calls for Substantive Talks with Government and Ruling Party

The National Financial Industry Labor Union has warned that it will launch an all-out struggle if the government pushes ahead with the decentralization of national policy banks such as the Industrial Bank of Korea, the Industrial Bank of Korea, and the Export-Import Bank of Korea. The union argues that the agglomeration effect generated by the concentration of financial institutions, capital markets, and professionals will be weakened, and the outflow of core personnel could undermine the expertise of policy finance.

Members of the National Financial Industry Labor Union (Financial Labor Union) held a general strike rally on the 16th at Sejong-daero, Gwanghwamun, Seoul. The Financial Labor Union, including unions of commercial banks and national policy banks such as the Industrial Bank of Korea, went on strike for the first time in six years since September 2016. Photo by Hyunmin Kim kimhyun81@

On August 18 in front of the fountain at Sarangchae, Cheong Wa Dae in Seoul, the Financial Labor Union held a press conference titled "Destroy Political Collusion, Protect Policy Finance, and Condemn the Reckless Attempt to Relocate National Policy Banks to Regional Areas." The union called for the government to halt the push to relocate national policy banks to local areas.

Yoon Seokgu, head of the Financial Labor Union, stated, "The Industrial Bank of Korea, the Industrial Bank of Korea, and the Export-Import Bank of Korea have functioned as breakwaters during economic crises and supported small- and medium-sized enterprises and export companies, representing core policy financial institutions." He argued, "Relocating them based on political interests is an act of self-destruction for the nation's financial competitiveness."

Yoon highlighted the agglomeration effect of the financial industry, citing that Seoul ranked 8th out of 137 cities worldwide in the Global Financial Centres Index (GFCI) in the first half of this year. He said, "If you artificially disperse the competitiveness created by the concentration of financial institutions, corporates, capital markets, and professionals in one place, the damage will come back to the entire financial industry."

The Financial Labor Union asserted that instead of relocating the headquarters of the national policy banks, the focus should be on strengthening regional financial infrastructure and expanding financial access and startup support for local residents and youths. The union also pointed out the contradiction of promoting both the development of the Seoul metropolitan area as a global financial hub and the relocation of national policy banks to regional areas at the same time.

Kim Hyunjun, head of the Industrial Bank of Korea Union, criticized, "The previous administration's unilateral push to relocate to Busan led to the loss of key personnel, and employees suffered years of anxiety and conflict. The Industrial Bank of Korea is not a political trophy to be handed out regionally every election."

Ryu Janghee, head of the Industrial Bank of Korea Union, emphasized that during the last presidential election, the Democratic Party of Korea signed a policy agreement with the Financial Labor Union to take a cautious approach to relocating financial institutions. He said, "There has still been no proper explanation or consultation. If the government pushes ahead with the relocation of national policy banks, it will destroy trust with its own labor base and ruling foundation."

Han Myeongho, Deputy Head of the Export-Import Bank of Korea Union, expressed concerns about the weakening of policy finance expertise due to the loss of core personnel. Han said, "National policy banks are responsible for protecting high-tech industries and the national supply chain, and for supporting small- and medium-sized enterprises and companies advancing overseas. If talent leaves and expertise crumbles, the competitiveness of policy finance will be damaged and the consequences will ultimately fall on the people."

The Financial Labor Union demanded that the government and the ruling party cease efforts to relocate policy banks, implement the presidential election policy agreement, and engage in genuine discussions with the union. After the press conference, the union delivered a protest letter containing "the determination of 100,000 workers to defend Korea's policy finance" to the Office of the Senior Secretary for Public Engagement in the Presidential Office. In a strike vote held on August 13, the union approved the general strike with over 96% support. The union plans to launch an all-out struggle involving 43 branches and 100,000 financial workers if the government continues with the relocation of national policy banks.

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