"Protecting Financial Sector Competitiveness"...Financial Union Launches General Strike Against Regional Relocation (Comprehensive)

Wage Negotiations Stalled Over 4.5-Day Workweek and Pay Raise
Push for Regional Relocation of Financial Institutions Sparks General Strike
Union Says, "Relocation Must Be Stopped for Korea's Economy and Financial Competitiveness"

The National Financial Industry Labor Union (Financial Union) launched a general strike on September 4 in opposition to the government's push to relocate national policy banks and other financial public institutions to regional areas. Amid unresolved differences between labor and management over the introduction of a 4.5-day workweek and a 6% wage increase, the plans to relocate financial public institutions have become more concrete, prompting the union to take a hardline stance out of concern for an exodus of skilled personnel and a weakening of the financial sector's competitiveness.

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

The union called for the introduction of a 4.5-day workweek, a 6% wage increase, expanded youth recruitment, and a halt to the relocation of financial public institutions. Yoon Seok-gu, Head of the Financial Union, emphasized, "By introducing a 4.5-day workweek, we can provide workers with time to recharge, offer more opportunities to young people, and create a financial industry where every generation can work together."

In particular, as the government moves forward with plans to relocate public institutions to regional areas, the effort to block the regional relocation of policy banks—including Korea Development Bank, IBK Industrial Bank of Korea, and Export-Import Bank of Korea—has rapidly emerged as a primary issue in the strike.

The Financial Union argues that relocating financial public institutions based in Seoul to regional areas would lead to an outflow of skilled personnel and a deterioration of the industry environment, undermining the overall competitiveness of Korea's financial sector. According to the Global Financial Centres Index (GFCI) report published in March this year by the UK consulting group Z/Yen, Seoul scored high in areas such as business environment (ranked 6th), human capital (8th), and development of the financial industry (8th), placing it 8th overall—ahead of Tokyo in Japan (10th) and Shenzhen in China (9th).

Members of the National Financial Industry Labor Union (Financial Union) are holding pickets that read "Stop Headquarters Relocation Attempts" during the first general strike on the 4th at Sejong-daero in Gwanghwamun, Seoul, demanding the government halt efforts to relocate national policy banks and other public financial institutions to provincial areas, and to introduce a 4.5-day workweek. Photo by Yonhap News

Chairman Yoon noted that major financial cities such as New York, London, Singapore, and Hong Kong concentrate financial institutions and skilled labor, stating, "Our reason for staying in Seoul is neither political nor simply to avoid being separated from our families. It is what is necessary for the Korean economy and the competitiveness of our financial sector."

He also criticized, "There are talks that, before and after the local elections on June 3, the government plans to move IBK Industrial Bank of Korea to Daegu, Export-Import Bank of Korea and Korea Development Bank to Busan or Naju, and NH NongHyup Bank to the Honam region. Forcing us to go without logic or reason—on what grounds is this justified?"

The rally was attended by lawmakers from the political sphere, including Lee Hagyoung, Kim Jooyoung, and Lee Yongwoo from the Democratic Party of Korea, Kim Hyungdong from the People Power Party, and Han Changmin, head of the Social Democratic Party. In a solidarity speech, Kim stated, "Seeing even the ruling party aligned with the Financial Union's general strike, I believe there are no party lines when it comes to legislation for workers," adding, "The relocation of public financial institutions must go through National Assembly approval."

Assemblyman Lee Yongwoo, instead of referencing the push to relocate financial public institutions, expressed full support for the 4.5-day workweek demanded by the union.

From the labor community, leadership from both major labor federations—including Kim Dongmyeong, Head of the Federation of Korean Trade Unions, and Yang Kyungsu, Head of the Korean Confederation of Trade Unions—were present.

The Financial Union includes, among its 43 chapters, those representing 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 & Clearings Institute, KOSCOM, and others. According to police estimates, 15,000 people participated in the strike, while organizers put the figure at 30,000.

In practice, the highest participation came from union members of Korea Development Bank, IBK Industrial Bank of Korea, and Export-Import Bank of Korea—institutions under consideration for relocation. As a result, there is expected to be minimal disruption to the operations of major commercial banks. Among the union members, IBK Industrial Bank of Korea accounts for about 9,000, Korea Development Bank has 2,250, and Export-Import Bank of Korea has 1,100.

The Financial Union stated that, following this general strike, it would decide whether to proceed with a second strike after monitoring any changes in the positions of management and the government.

Members of the National Financial Industry Labor Union (Financial Labor Union) are holding pickets during the first general strike on the 4th at Sejong-daero, Gwanghwamun, Seoul, demanding the government stop relocating national policy banks and other financial public institutions to local areas and introduce a 4.5-day workweek. Photo by Lee Gimin

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