Labor unions at Korea's three state-run banks will launch off-site protests next month against relocating their headquarters to provincial regions.
The unions of the Korea Development Bank, IBK Industrial Bank of Korea and the Export-Import Bank of Korea plan to hold a joint rally on the 11th of next month opposing the relocation, according to financial industry sources on the 26th. The unions raised the level of their response after President Lee Jae-myung said at a national real estate policy debate on the 23rd that the government "will soon undertake a large-scale project to relocate public institutions" to provincial areas, prompting expectations that a second round of public institution relocation plans will be announced. In the financial sector, plans under discussion would move the three state banks to cities such as Busan, Daejeon, Jeonju and Naju.
The unions argue that relocating the state banks could undermine the competitiveness of the financial industry. "The financial industry cannot be developed by fragmenting the financial ecosystem," a union official said.
State banks are considered among the public institutions that would generate the greatest impact from relocation. As of the end of March, the three state banks had 14,500 full-time employees, with an average annual salary of around 110 million won. Relocation is expected to stimulate local consumption and create quality jobs.
However, relocating the headquarters requires legislative amendments. The establishment laws for each state bank specify Seoul as the location of the banks' headquarters. But with the Democratic Party of Korea taking the chairmanship of the National Assembly's National Policy Committee, which oversees the relevant legislation, the likelihood of the government's plan gaining momentum has increased.
The unions are also considering a total strike. If the response at the level of the Korean Financial Industry Union proves insufficient, individual unions are reportedly keeping open the possibility of strikes and conducting legal reviews. The three state banks are currently carrying out core national tasks including operating the National Growth Fund and supplying policy funds. "Anxiety among employees is considerable," a union official said. "We will convey employees' views through next month's rally."
