Kang Seok-hoon Unable to Go to Work for Ten Days... Conflict Over KDB's Busan Relocation Reaches Peak

Signs of Prolonged Struggle to Block Commute

On the 17th, KDB Union members held a press conference in the lobby of KDB Headquarters in Yeouido, Seoul, urging the chairman-designate and the government to express their stance on the relocation of KDB Headquarters to Busan. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporters Yu Je-hoon and Bu Ae-ri] The conflict over President Yoon Seok-yeol's pledge to relocate KDB Industrial Bank to Busan shows signs of prolonged escalation. Despite the appointment of Kang Seok-hoon as the new chairman of Industrial Bank ten days ago, the inauguration ceremony has yet to take place due to the labor union's work stoppage protests. The union has demanded that "President Yoon must intervene" and has called for a public statement.

The Korea Industrial Bank Branch of the National Financial Industry Labor Union held a press conference on the morning of the 17th in front of the headquarters in Yeouido, Yeongdeungpo-gu, Seoul, with about 500 members attending. They stated, "If the relocation of Industrial Bank to the provinces is insisted upon due to political logic, it will act as a disaster on our economy beyond the current administration, and the damage will inevitably fall entirely on the people."

The union criticized, "On the day Chairman Kang attempted his first commute, he expressed willingness to discuss the relocation issue with the union in front of the media and employees. However, during the actual discussions, he showed an irresponsible attitude by judging the current situation solely from the administration’s standpoint as a presidential pledge, lacking a sense of responsibility as chairman and understanding of the members' sentiments."

Furthermore, the union stated, "Even without mentioning Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho’s recent remarks about mobilizing all policy measures amid a complex crisis in the financial and foreign exchange markets caused by soaring inflation, monetary tightening in major countries, and geopolitical risks from the Ukraine situation, it is obvious that if a policy bank relocates to the provinces, the safety net to respond to economic crises will not function properly."

The union continued, "If Chairman Kang does not have the authority to discuss and decide on the relocation of Industrial Bank to Busan, then the appointing authority, the president, must now step in." They emphasized, "The president and the executive branch should stop pressuring the chairman for relocation immediately, conduct a concrete and practical review of the relocation, and respect the judgment of the legislative body, the National Assembly, based on that review."

Earlier, since Chairman Kang’s appointment on the 7th, the Industrial Bank labor union has continued its work stoppage protests demanding the withdrawal of the headquarters’ relocation plan to Busan. Although Chairman Kang and the union have held meetings and maintained behind-the-scenes contacts, no significant agreement has been reached. As this situation persists, Chairman Kang has been carrying out external schedules from a temporary office set up somewhere in Yeouido without holding an inauguration ceremony.

Chairman Kang attempted to go to work again the previous day and proposed establishing a permanent body to discuss the Busan relocation issue, but the situation remained unchanged. Park Hong-bae, chairman of the Financial Labor Union, pointed out, "If (the administration) is pressuring to relocate (Industrial Bank) before legal amendments, Chairman Kang should have said, ‘I will never push for relocation without union agreement.’ They propose dialogue by creating a pro-government or ghost organization, but it is not trustworthy."

Concerns are growing in the financial sector that this situation could be prolonged. This comes amid the collapse of the M&A deal for Daewoo Shipbuilding & Marine Engineering and difficulties faced by Korean Air’s acquisition of Asiana Airlines due to competition authorities’ scrutiny in various countries. A policy bank official said, "Except for the case of IBK Industrial Bank President Yoon Jong-won, who faced about a month of conflict due to parachute appointment controversy, it is rare for a work stoppage protest to exceed ten days." He added, "This shows the high level of internal anxiety within Industrial Bank, and if the conflict drags on, various pending issues could become severely strained."

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