"Government Undermining Financial Industry Competitiveness"... Financial Workers' Union General Strike

Push for Relocation of Financial Institutions, Including State-Run Banks, Sparks General Strike
Union Claims: "Regional Relocation Ignores Financial Industry Characteristics and Workers' Lives"

The National Financial Industry Labor Union (Financial Workers' Union) launched a general strike on September 4 in protest against the government's push to relocate financial public institutions, including state-run banks, to regional areas. As differences over the introduction of a 4.5-day workweek and a 6% wage increase remained unresolved between labor and management, the union decided to take a firm stance out of concerns regarding the potential departure of professional talent and weakening of financial competitiveness, especially as the relocation of public financial institutions became increasingly likely.

The Financial Workers' Union held its first general strike rally at 11 a.m. in front of Dongwha Duty Free Shop on Sejong-daero, Gwanghwamun, Seoul. This marked the first general strike by the Financial Workers' Union in about a year, since September last year. Union members wore red headbands inscribed with "General Strike".

The union demanded the introduction of a 4.5-day workweek, a 6% wage increase, expanded recruitment of young people, and a halt to the relocation of financial public institutions. Seokgu Yoon, the head of the Financial Workers' Union, emphasized in his opening remarks, "By introducing the 4.5-day workweek, we should create a financial industry where workers have time to recharge and younger generations have more opportunities, enabling all generations to work together."

In particular, as the government pushes ahead with the relocation of public institutions, preventing the relocation of financial public institutions—including policy banks such as Korea Development Bank, Industrial Bank of Korea, and Export-Import Bank of Korea—has rapidly emerged as the main issue in this general strike.

The Financial Workers' Union held the first general strike rally at 11 a.m. this morning in front of Donghwa Duty Free Shop on Sejong-daero, Gwanghwamun, Seoul, urging the halt of the decentralization of financial public institutions. Yonhap News Agency

The Financial Workers' Union argued that relocating financial public institutions currently based in Seoul to regional areas could lead to an outflow of professional talent and a deterioration of the industrial environment, thereby undermining the competitiveness of Korea's financial industry as a whole. According to the Global Financial Centres Index (GFCI) report released in March this year by UK consulting group Z/Yen, Seoul received high scores in business environment (6th), human capital (8th), and development of the financial industry (8th), ranking 8th overall, ahead of Tokyo, Japan (10th) and Shenzhen, China (9th).

Chairman Yoon stated, "We oppose the regional relocation that disregards the unique characteristics of the financial industry and ignores the lives of workers," adding, "(The government) should objectively evaluate to what extent the first round of public institution relocations alleviated concentration in the capital region and benefited local economies, and why the issues of manpower outflow and settlement for relocated institutions remain unresolved." The Financial Workers' Union plans to monitor any change in stance from the management and the government after the strike, and will decide later on whether to proceed with a second general strike.

Attendees at the rally included Assemblymen Lee Hakyoung and Lee Yongwoo of the Democratic Party of Korea, and Assemblyman Kim Hyungdong of the People Power Party. During a solidarity message, Assemblyman Kim stated, "It is clear, as even the ruling party is standing with the Financial Workers' Union, that when it comes to legislation for workers, there is no divide between ruling and opposition parties. Any plan to relocate financial public institutions and public corporations must receive the consent of the National Assembly." Assemblyman Lee Yongwoo expressed his wholehearted support for the 4.5-day workweek demanded by the union, although he did not make separate remarks on the plan to relocate financial public institutions.

The Financial Workers' Union is composed of 43 chapters, including major commercial banks, regional banks, policy banks, Korea Credit Guarantee Fund, Korea Technology Finance Corporation, Korea Asset Management Corporation, Korea Housing Finance Corporation, Korea Financial Telecommunications and Clearings Institute, and Koscom. Police estimated the number of participants in the day's general strike at 15,000, while organizers claimed 30,000. Most of the participants were members from Korea Development Bank, Industrial Bank of Korea, and Export-Import Bank of Korea, where actual relocation is under consideration, so significant disruption to commercial bank operations is not expected. There are approximately 9,000 union members at Industrial Bank of Korea, and 2,250 and 1,100 at Korea Development Bank and Export-Import Bank of Korea, respectively.

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