Gwangju Bank Union Expresses Concern Over "Outflow of Local Funds" in Amendment to the Electronic Financial Transactions Act

[Asia Economy Honam Reporting Headquarters Reporter Park Jin-hyung] The council of labor unions of regional banks, including Gwangju Bank, warned that the amendment to the Electronic Financial Transactions Act (EFTA) poses a significant risk of regional funds flowing out to large platforms.

The EFTA amendment targeted by them was originally proposed last year by Yoon Kwan-seok, a member of the Democratic Party of Korea. The core of the amendment includes provisions to grant comprehensive payment settlement business licenses to big tech companies such as Naver, allowing them to open accounts like banks.

If this happens, comprehensive payment settlement business operators will be exempt from the application of the Financial Company Governance Act, Financial Industry Structure Improvement Act, Act on Reporting and Using Specified Financial Transaction Information, and Financial Consumer Protection Act, which currently apply to financial companies.

In response, the 'Jinohyeop,' a council composed of labor unions from six regional banks, issued a statement on the day, arguing that "the intensification of offshore outflow of regional funds will deteriorate the funding capabilities of regional financial institutions."

They added, "This will cause disruptions in the smooth supply of funds to small businesses and small merchants, and the damage will affect local residents," pointing out that "this goes against the purpose of national balanced development led by the government and ruling party."

Jinohyeop explained, "Regional banks such as Gwangju Bank have been conducting community-based operations targeting small and medium-sized enterprises in Gwangju and Jeonnam, areas untouched by internet banks or commercial banks."

Through this, they emphasized that "the role they have played in supporting the regional economy is difficult to quantify in tangible or intangible value."

Finally, they pressured, "Concerns from various sectors are growing regarding the amendment, which fails to properly reflect the realities of the financial market," urging "responsible discussions by policymakers for the development of local communities and regional industries."

The Gwangju Bank labor union has been actively opposing the amendment through various means, including one-person protests in front of the National Assembly since February.

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