IBK Union Criticized by Moon... "Personnel Authority Lies with Government" (Comprehensive)

Union Rejects 'Parachute Appointment' Claims... Supports Yoon Jong-won, CEO of Industrial Bank of Korea
Interpreted as Narrowing Union's Room to Maneuver Amid Exit Strategy Search

[Asia Economy Reporter Kwon Haeyoung] President Moon Jae-in dismissed the labor union's 'parachute appointment controversy' regarding the appointment of Yoon Jong-won as the president of IBK Industrial Bank of Korea (IBK), stating, "The authority to appoint the president of IBK lies with the government." As the union's protest to block attendance continues for the 12th day, it appears that President Moon expressed support for President Yoon, strengthening his position. The union opposed, urging President Moon to keep his promise made during his candidacy to eradicate parachute appointments.

On the 14th, at the New Year's press conference held at the Blue House's State Guest House, President Moon stated, "IBK is a government-funded policy bank and a type of public institution. Therefore, the authority to appoint lies with the government."

This was a direct blow to the union's opposition to the Blue House breaking the tradition of appointing three consecutive presidents from within?Jo Jun-hee, Kwon Sun-joo, and Kim Do-jin?and instead appointing Yoon, a former bureaucrat. Currently, the Ministry of Economy and Finance holds the largest stake in IBK with 53.2% ownership.

He criticized firmly, saying, "If change is needed, it is appropriate to bring in external talent; if stability is needed, to promote internally. There is no deficiency in his career, so vetoing him just because he is not from within is not right." He added, "Union members will have opportunities for internal promotion next time, so I hope they view this appointment with a more open mind, focusing on IBK's development and its role in supporting small and medium enterprises more actively."

Regarding President Yoon, he dismissed qualification controversies, stating, "He has worked in economic finance, served as an economic and financial secretary at the Blue House during the previous government, and as the senior secretary for economic affairs in this administration. He also served as an Executive Director at the International Monetary Fund (IMF)."

President Moon's emphasis that the appointment authority for the IBK president lies with the Blue House seems aimed at empowering President Yoon amid the urgent need to normalize IBK's management. It is also interpreted as a judgment that the Blue House and ruling party should no longer be led by the union, which demands regret and dialogue over parachute appointments.

The IBK labor union immediately issued a statement rebutting point by point. The union said, "The president opposed parachute appointments of IBK presidents during his opposition days and promised during his candidacy to eradicate parachute appointments and improve the appointment procedures for the IBK president," and challenged, "Then why did the president appoint a Blue House parachute to the IBK presidency?" They added, "We are asking why the president is not keeping his promise, but there is no response from the government or the Blue House," and declared, "If the precious promise is kept, the IBK union will immediately end all resistance and struggles."

As the union continues its protest to block attendance, IBK's turmoil is expected to prolong. Immediate delays in executive and affiliate CEO appointments and loss of momentum in business operations are inevitable.

Some argue that President Moon's remarks have narrowed the union's room for maneuver as it seeks an exit strategy. On the 13th, the IBK union held a large discussion meeting with members to convey the current situation. Although the meeting ended without a clear conclusion, many view it as part of an exit strategy to end the attendance-blocking protest. The prolonged protest has worsened public opinion, placing a heavy burden on the union as well.

An IBK union official stated, "We consistently demand expressions of regret from the Blue House and ruling party and transparency in future IBK president appointment procedures," leaving room for negotiation.

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