During the COVID-19 emergency... IBK Union Files Complaint Against Bank President for Violating 52-Hour Workweek

Overtime Work Due to Surge in COVID Loans
Union: "Bank Does Not Adjust Profit Targets"
Management: "Measures to Comply with Working Hours Planned"

Yoon Jong-won, the new president of IBK Industrial Bank, is delivering his inaugural speech at the inauguration ceremony held on the 29th at the IBK headquarters in Euljiro, Jung-gu, Seoul. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Kim Min-young] The conflict between Yoon Jong-won, president of IBK Industrial Bank of Korea (IBK), and the labor union, which had clashed over the appointment of the bank president, seems to be reigniting. The IBK labor union has filed a complaint against President Yoon for violating the Labor Standards Act related to the 52-hour workweek. The reason for the complaint is that the management forced employees to work beyond 52 hours a week due to a surge in loan applications related to the novel coronavirus disease (COVID-19). Some criticize the national policy bank’s labor union for being obstinate at a time when small and medium-sized enterprises and small self-employed businesses are facing a crisis due to the COVID-19 impact.

According to financial circles on the 19th, the IBK labor union filed a complaint with the Seoul Regional Employment and Labor Office against President Yoon the day before, alleging that the management forcibly disabled the PC off program that manages overtime work, causing branch employees to work beyond 52 hours a week. This is the first time in the financial sector that a labor union has filed a complaint against a CEO for violating the 52-hour workweek regulation.

Yoon Jong-won, President of IBK Industrial Bank, was blocked by union members' protest against going to work while commuting to the IBK Industrial Bank headquarters in Jung-gu, Seoul on the 7th. Photo by Moon Ho-nam munonam@

Kim Hyung-sun, chairman of the IBK labor union, stated, “In the case of branches, they are handling dozens to as many as 100 COVID-19-related loan tasks per day, and the working hours are insufficient just for these tasks alone.” He added, “However, the bank has not made any adjustments to its existing profit targets.”

The IBK bank’s explanation differs. IBK said, “We have prepared measures to strictly comply with the 52-hour workweek and explained them to the labor union,” adding, “Weekly overtime work status is checked and managed by employees and supervisors.” They also said, “We are strengthening PC off system controls, establishing a reporting channel for unfair labor practices, and taking personnel actions against violators.”

Regarding performance evaluation indicators (KPI), they said, “We have significantly reduced management evaluation targets, focusing on some items that require adjustment to reflect changes in the bank’s management environment due to the COVID-19 situation and to allow employees to concentrate on supporting small business owners and self-employed individuals.” In particular, they added, “Branches in Daegu and Gyeongbuk, declared national disaster areas, will have separate evaluations in addition to target adjustments, greatly easing the evaluation burden.”

An IBK bank official said, “We are making every effort to comply with relevant laws even in difficult situations through compliance management and proper management.”

Inside and outside the financial sector, there are criticisms that the IBK labor union’s behavior of forcibly filing a complaint against President Yoon without seeking solutions with management during the national emergency caused by COVID-19 is excessive. Negative views also dominate regarding the union’s intention to demand the withdrawal of performance targets by taking advantage of the emergency situation.

On the 7th, union members are protesting to block Yoon Jong-won, President of IBK Industrial Bank, from entering the headquarters in Jung-gu, Seoul. Photo by Moon Ho-nam munonam@

A representative of a commercial bank said, “As branch employees inevitably have to work significantly more due to efforts to quickly supply loans to self-employed individuals and companies struggling with COVID-19, some overtime work is unavoidable,” adding, “In a national emergency, isn’t the IBK labor union, a national policy bank, only focused on protecting its own interests?”

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