Chairman Kang Seok-hoon of Korea Development Bank, Who Has Not Even Started His First Day, Faces a Thorny Path

Kang Seok-hoon, the newly appointed President of the Korea Development Bank
[Photo by Yonhap News]

[Asia Economy Reporter Buaeri] Kang Seok-hoon, the newly appointed chairman of KDB Industrial Bank, faced strong opposition from the bank’s labor union, blocking his first day at work and signaling a thorny path early in his term. Attention is focused on whether Chairman Kang can find a breakthrough next week through negotiations with the union.

According to sources from the bank on the 11th, Chairman Kang was prevented from entering the headquarters on his first day, the 8th, and also did not come to the main office on the 9th and 10th. It is reported that Chairman Kang has set up a temporary workspace at an undisclosed location.

Jo Yoon-seung, chairman of the bank’s labor union, along with union members, continues to protest in the lobby, opposing the bank’s relocation to Busan and parachute appointments. The union stated in a press release, "We will not allow even a single step of parachute appointments aimed at relocating the bank’s headquarters to the provinces," and added, "We will never tolerate the bank becoming a playground for unqualified parachute appointments again."

While the union’s usual blockade of the bank’s entrance lasts about a week to ten days, this time the protest is expected to be prolonged. In the financial sector, when Yoon Jong-won became president of IBK in 2020, he faced union opposition and was able to enter the headquarters only 27 days after his inauguration. A union official said, "There is no set deadline for the (blockade) protest."

Chairman Kang and Chairman Jo held a meeting but reportedly failed to find common ground. A union official explained, "It is unusual for him to come to work immediately after appointment. Previously, there was a 2-3 week period before starting work, allowing time for dialogue and mutual understanding, but this time it was not like that, so meeting once does not mean improvement."

Both sides are expected to exchange opinions through behind-the-scenes negotiations going forward. The union finds it burdensome to face public criticism by blocking the new chairman’s entry for a long time, and Chairman Kang is also likely to adopt a flexible approach focusing on communication rather than a hardline stance amid worsening employee sentiment. However, since relocating the bank to Busan is a key pledge of President Yoon Suk-yeol, the critical issue is whether Chairman Kang can find a compromise. On the first day his entry was blocked, Chairman Kang told reporters, "I will communicate openly and resolve this going forward."

Meanwhile, Chairman Kang served as the chief economic secretary at the Blue House during the Park Geun-hye administration from 2016 to 2017. After President Yoon’s election, he served as a policy advisor, helping design the new government’s economic policies alongside the Presidential Transition Committee.

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