"4.5-Day Workweek, Opposition to Relocation"...Financial Union to Launch First General Strike on 4th

Union Urges Response from Management on 4.5-Day Workweek and Youth Recruitment Expansion
Financial Union: “Assessment Needed from the First Wave of Public Institution Relocations”
“Seoul is the World’s Eighth Largest Financial Hub...Concern Over Loss of Competitiveness”

The Financial Industry Labor Union (hereinafter “the Financial Union”) will launch a general strike on the 4th in protest against the government's push to relocate state-owned banks and other public financial institutions to regions outside Seoul. The Financial Union, which initially focused its demands on the introduction of a 4.5-day workweek and expanding youth recruitment, has broadened its agenda by opposing the government's plan to relocate public financial institutions, thereby garnering additional public support for the general strike.

On the afternoon of the 3rd, the Financial Union held a press conference in the lobby of the Bankers Association building in Jung-gu, Seoul, declaring, “We will launch the first general strike tomorrow, taking on the fighting spirit of 100,000 financial workers.” The first general strike and rally is scheduled to take place at 11 a.m. on the 4th at Sejong-daero, Gwanghwamun.

The Financial Union stated that since last April, it has held dozens of negotiations and mediation talks with management, including through the Central Labor Relations Commission, but that management has not responded to demands for the introduction of a 4.5-day workweek, the expansion of youth recruitment, or the complete rejection of the relocation of public financial institutions and state-owned banks to other regions. In wage negotiations, the union lowered its initial demand for an 8% increase to 6%, but claimed that management has continued to offer only 2.5%.

The National Financial Industry Labor Union (Financial Labor Union) held a press conference on the afternoon of the 3rd in the lobby of the Bankers Hall in Jung-gu, Seoul, titled "Press Conference for the Start of the First General Strike on September 4," announcing, "We will commence the first general strike tomorrow, embodying the fighting spirit of 100,000 financial workers." Photo by Ki-Min Lee

The union also strongly criticized the government's push to relocate public financial institutions, arguing that relocation without sufficient review and consultation with stakeholders could undermine the competitiveness of the financial industry.

Yoon Seokgoo, Head of the Financial Union, stated, “The government is trying to shake the competitiveness of Seoul, which has risen to become the world’s eighth largest financial hub. I must ask again whether dispersing financial institutions such as Korea Development Bank, IBK Industrial Bank of Korea, Export-Import Bank of Korea, and Nonghyup, without considering the unique characteristics of the financial industry, will truly enhance national competitiveness.”

Yoon added, “We need to objectively assess to what extent the first wave of public institution relocations alleviated concentration in the capital region and how much impact it had on local economies. Why have issues such as staff departures and settlement problems within the relocated institutions not improved?”

The press conference was also attended by representatives from the labor unions of the three major state-run banks — Korea Development Bank, Export-Import Bank of Korea, and IBK Industrial Bank of Korea — who voiced their opposition to relocation plans.

Ryu Janghee, Chairman of the IBK Industrial Bank of Korea branch, said, “They will never be able to improve their broken approval ratings with a uniform, mechanical allocation process regarding the relocation of public financial institutions. When the issue of regional relocation was first discussed in 2012, there was a philosophy to make Seoul a financial hub, but now, that consistent policy is collapsing in an instant. The losses will be borne by the people, shareholders, and workers.”

He also said, “After hearing the Prime Minister’s announcement on the relocation of public institutions today, I still believe it lacks justification and effectiveness. The general strike will be the signal flare to change their policies.”

Criticism was also raised regarding the government’s idea that relocating state-owned banks will revitalize regional economies. Kim Junghyun, Chairman of the BNK Kyongnam Bank branch, stated, “Is regional relocation — whether of public institutions or financial institutions — like a game of Blue Marble (the Korean version of Monopoly) where one tosses a die and simply moves a building? Start by paying attention to regional banks and the local financial sector that are already struggling with local economic stagnation and declining populations.”

The Financial Union decided to go on general strike after a strike authorization vote on August 12, in which 96.05% supported the action. On August 28, the union held a rally declaring its intent to go on strike in earnest.

Based on preliminary attendance counts, the union expects about 20,000 members to participate in the first general strike on the 4th. In particular, it is anticipated that the majority of union members — except for essential personnel — from the three major state-run banks affected by the relocation issue will take part. The IBK Industrial Bank of Korea branch has about 9,000 union members, while the Korea Development Bank and Export-Import Bank of Korea have approximately 2,250 and 1,100 members, respectively.

The Financial Union has stated that unless negotiations with management proceed smoothly after the first general strike, it plans to set a date for a second general strike.

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