Union members from state-run banks, whom we met at the first general strike rally held by the National Financial Industry Labor Union (Financial Union) on Sejong-daero in Gwanghwamun, Seoul, on the 4th, unanimously urged the government to completely withdraw its plan to relocate state-run banks and other public financial institutions to regional areas. Although the Financial Services Commission was provisionally excluded from the second list of central administrative agencies prioritized for relocation—announced by the government the previous day—the union members maintain that they will continue their strong opposition unless the government explicitly confirms its exclusion.
According to the Financial Union’s estimate, 30,000 people gathered at the first general strike rally that day. Based on the unions’ own tally for the so-called “three major state-run banks”—the Korea Development Bank, the Export-Import Bank of Korea, and IBK Industrial Bank of Korea—which have been mentioned as targets for relocation, union members from these banks accounted for approximately 20% of the total rally participants. By bank, more than 2,000 from the Korea Development Bank, more than 800 from the Korea Export-Import Bank, and more than 3,000 from IBK Industrial Bank of Korea attended the general strike rally. This indicates that a significant portion of the total union members at each bank participated.
Union members from state-owned banks argued that the relocation of financial public institutions to regional areas is a matter that affects the competitiveness of Korea’s financial industry. They contended that the agglomeration effects of the financial industry could be weakened by such relocations.
An official from the Industrial Bank of Korea (IBK) union stated, “The financial industry can only demonstrate competitiveness when diverse resources are concentrated in one place,” adding, “Major financial hubs such as Singapore, Hong Kong, and New York are prime examples.” The official continued, “Since financial companies in Korea are also concentrated in Seoul, relocating only the policy banks to the provinces could weaken the competitiveness of the entire financial industry.”
For this reason, they predicted that operational efficiency and performance would decline significantly if the banks were relocated to the provinces. The Korea Development Bank (KDB) union argued that the relocation could also affect the role of policy-based financial institutions. KDB generates profits through financial transactions in the market—such as project financing (PF), venture capital investments, and lending to large corporations—and channels these profits into regional investments or government dividends; however, if the bank moves to a remote location and becomes distanced from the market, opportunities to participate in such transactions could diminish.
An official from the KDB union argued, “Relocating to a regional area will ultimately lead to a decline in profitability, which could reduce the capacity for regional investment or government dividends.” He also emphasized, “From the perspective of balanced regional development, it is more effective to maintain financial competitiveness in Seoul to generate profits and then invest those profits in regional areas, rather than simply moving financial institutions to regional areas.”
The Korea Export-Import Bank (KEXIM) labor union pointed out that KEXIM holds approximately 1,000 meetings annually with overseas clients, stating, “If the headquarters is relocated to Sejong, Busan, or Naju, staff would have to travel back to Seoul to meet with these clients. It is questionable whether it is reasonable for the government to relocate an international financial institution to the provinces while incurring such administrative costs.”
Staff turnover and the resulting loss of expertise are also reasons why the union at this policy-based bank opposes the relocation to a regional area. An official from the Export-Import Bank union expressed concern, stating, “If the relocation proceeds, there is a significant possibility that a large number of young employees with five years or less of service will leave,” and added, “Even if new staff are hired, it is difficult to train them to a level capable of handling international finance operations in a short period, so staff turnover could directly lead to operational gaps.”
In a resolution issued the same day, the Financial Workers’ Union argued that it is first necessary to verify what results the first round of relocations of public institutions to regional areas has achieved in terms of alleviating concentration in the Seoul metropolitan area and revitalizing local economies. Their reasoning is that it is premature to push for a second round of relocations while issues regarding workforce exodus and living conditions remain unresolved.
The unions of the three major state-run banks plan to continue their strong stance against the relocation to regional areas even after this first general strike. In particular, the Korea Development Bank (KDB) union—whose members have been on edge due to three years of ongoing discussions on the relocation—is considering separate negotiations and strikes at the branch level following the general strike. Officials from each bank’s union also stated that they are keeping open the possibility of the three major state-run bank unions taking joint action if necessary.
On this day, the Financial Workers’ Union demanded not only a halt to the relocation of financial public institutions to regional areas but also the introduction of a 4.5-day workweek, expanded hiring of young people, an increase in real wages, and a comprehensive overhaul of the total labor cost system.
Yoon Seok-gu, chairman of the Financial Workers’ Union, stated, “Although we have held over 30 rounds of working-level and representative negotiations over the past five months since April, management has not provided a responsible response to our core demands,” adding, “Starting with today’s first general strike, we will fight to the end for our working conditions and the economy of the Republic of Korea.”
