[On the Scene] He Who Ties the Knot Must Untie It

[Asia Economy, Reporter Kangwook Cho] On January 7, Yoon Jongwon, the newly appointed CEO of IBK (Industrial Bank of Korea), once again had to turn back due to the union’s blockade of his entry to work. This marks the fifth consecutive day that the CEO has been forced to work outside the headquarters due to ongoing disruptions.

The CEO of IBK, a state-run bank, is appointed by the President upon the recommendation of the Financial Services Commission, as stipulated by law. For over 50 years since IBK was founded, all 22 CEOs have come from bureaucratic backgrounds. One might expect this to be familiar by now, so why is the IBK union reacting so strongly? A recently interviewed IBK employee lamented, "With three consecutive CEOs promoted from within, we started to hope that working hard here could eventually lead to the top position, but now it feels like we’ve gone back to the old days."

The first CEO of IBK to be hired through open recruitment was Cho Joonhee, who became the 23rd CEO in 2010. At the time, Cho frequently repeated the phrase, "Anyone can become a king or queen," emphasizing that every IBK employee could become a branch manager or even CEO. Following him, Kwon Sunjoo, the first female CEO, took office in 2013, and then Kim Dojin in 2016, making it three consecutive CEOs promoted from within the organization.

Even within IBK, not everyone is opposed to having a CEO with a bureaucratic background. Previous external CEOs are acknowledged for bringing fresh perspectives and revitalizing the organization, as well as serving as a strong shield for employees. Another IBK employee noted, "Since IBK is a state-run bank, it’s only natural for the government to appoint the CEO." He cited the political acumen and flexible communication with the government as strengths of bureaucratic appointees. However, he also stressed that such individuals must possess expertise and competence in banking as a prerequisite.

The problem is that if this standoff continues, operational disruptions and resulting damages will be inevitable. Furthermore, if IBK’s core functions of fostering and supporting small and medium-sized enterprises are compromised, the negative impact will inevitably fall directly on those SMEs.

The IBK union claims this is a textbook example of parachute appointments based on political patronage. They argue that this is simply a job created for a Blue House senior official. The current administration has faced much controversy due to failed personnel vetting. In the past, when it was in the opposition, it did not hesitate to criticize government-controlled finance. If the administration continues to ignore the situation after appointing Yoon as CEO and only pays attention to public opinion, things will only get worse. As the saying goes, "He who ties the knot must untie it." Now is the time for the Blue House to step in directly and facilitate communication between CEO Yoon and the union.

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