Innovative Finance No.1 'LivM' 100,000 Customers Fear Damage Amid Union Opposition

Conflict Between Labor and Management at the Crossroads of Business Extension
FSC Designated 139 Innovative Financial Services Over the Past 2 Years Through Financial Regulatory Sandbox Implementation

[Asia Economy Reporter Park Sun-mi] The 100,000 customers subscribed to KB Kookmin Bank's budget phone business "Liiv M," designated as the Financial Services Commission's (FSC) 'No. 1' innovative financial service, are at risk of suffering due to the union's obstinacy. Over the past two years, the FSC has achieved the designation of 139 innovative financial services through the implementation of the financial regulatory sandbox, but since the 'No. 1' service has been embroiled in noisy disputes, concerns over whether to extend the designation have deepened.

According to the financial sector on the 9th, the KB Kookmin Bank union plans to hold a rally in front of the FSC on the 14th to oppose the re-designation of the Liiv M business as an innovative financial service. Liiv M is a financial and telecommunications convergence service launched in December 2019 after KB Kookmin Bank became the first in the banking sector to receive approval for an innovative financial service from the FSC in April 2019. The decision on whether to re-designate the service will be made at the FSC's regular meeting on the 14th, marking two years since its designation.

The union argues that Liiv M not only interferes with the bank's core business operations but also increases the workload of employees. During the labor-management council held the previous day, the union raised issues regarding the extension of Liiv M with management but failed to facilitate smooth dialogue. The union stated, "We oppose the continuation of the Liiv M business, but management only repeats general statements without presenting clear alternatives," adding, "If management's stance does not change, further dialogue will be impossible."

FSC to Decide Next Week on Re-designation of Liiv M as an Innovative Financial Service

KB Kookmin Bank, viewing the extension of the Liiv M business as a win-win for the bank, employees, and customers, is exploring various ways to persuade the union as the FSC's decision date approaches.

Ahead of the re-designation review, KB Kookmin Bank officially requested the union for business consultations related to Liiv M. However, the union maintains that "an apology from management for previously identified violations of the innovative financial service approval (additional) conditions, such as posting performance reports, and measures to prevent recurrence must precede any discussions," insisting that consultations can only proceed if there is an improvement plan including measures to restrict performance pressure.

Having attracted 100,000 subscribers over two years, KB Kookmin Bank is anxious that Liiv M might fail to secure service extension due to union opposition. A bank official expressed concern, saying, "KB Kookmin Bank is preparing various countermeasures in case the Liiv M service is discontinued, but there is a possibility that consumer trust could be lost either during the response process or due to the service suspension itself." The official added, "The union should reconsider from a customer-centric perspective whether the suspension of Liiv M, which is moving toward launching consumer-focused rate plans, is truly the best choice for customers."

The FSC, which must demonstrate achievements in innovative finance, cannot help but feel burdened by the union's strong opposition. Although the union's resistance itself may not decisively affect the FSC's review, there is concern that the re-designation of innovative financial services by the FSC could lead to intensified labor-management conflicts, potentially causing harm to financial consumers.

Financial Services Commission Chairman Eun Sung-soo emphasized at the Innovative Finance Review Committee that efforts to solidify the financial regulatory sandbox will be thorough, stating, "For sustainable innovation, it is essential to understand the positions of related stakeholders and to communicate and coordinate sufficiently."

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