"‘Wage Increase and 4.5-Day Workweek’ Financial Labor Union General Strike... Low Participation from Commercial Banks (Comprehensive)"

Members of the National Financial Industry Labor Union (Financial Union) are holding a general strike rally on the 16th at Sejong-daero, Gwanghwamun, Seoul. The Financial Union, including unions from commercial banks and the Korea Development Bank (KDB), a policy bank, went on strike for the first time in six years since September 2016. Photo by Hyunmin Kim kimhyun81@

[Asia Economy reporters Bu Aeri, Lee Minwoo, Song Seungseop] The National Financial Industry Labor Union (Financial Union) launched a full-scale strike on the 16th and held a large-scale rally around Gwanghwamun in Seoul. This is the first strike by the Financial Union in six years since September 2016. The Financial Union took to the streets demanding a 5.2% wage increase and a reduction in working hours (pilot operation of a 4.5-day workweek).

On the morning of the same day, the Financial Union held a rally with about 30,000 people (organizers' estimate, police estimate 13,000) gathered around Sejong-daero Intersection in Gwanghwamun, Seoul. Traffic congestion occurred around Gwanghwamun, causing some citizens to express dissatisfaction. The Financial Union then marched to Yongsan Samgakji Station and dispersed around 1 p.m. that day.

Park Hongbae, chairman of the Financial Union, raised his voice, saying, "We must defend the public nature of finance against the Yoon Seok-yeol administration, which is privatizing public institutions and pushing labor reforms, and financial employers who are cutting branches and employment and are obsessed with shareholder dividends. Regardless of which administration comes in, we must strike down the Ministry of Economy and Finance, which never stops their exclusive parties, and the financial holding power that blindly follows them."

Members of the National Financial Industry Labor Union (Financial Union) are holding a general strike rally on the 16th at Sejong-daero, Gwanghwamun, Seoul. The Financial Union, including the unions of commercial banks and the Korea Development Bank (KDB), a policy bank, went on strike for the first time in six years since September 2016. Photo by Hyunmin Kim kimhyun81@

On the same day, the Financial Union demanded ▲halt to branch closures ▲maintenance of adequate staffing ▲abolition of the wage peak system ▲reduction of working hours ▲restriction of dismissal reasons ▲abolition of public institution innovation plans ▲cancellation of the relocation of national policy banks to provinces.

The atmosphere among employees of commercial banks and national policy banks was somewhat divided at the rally. The participation rate of commercial bank employees in the general strike was not high. According to the Financial Supervisory Service, the strike participation rate of the five major banks (KB Kookmin, Shinhan, Woori, Hana, NH Nonghyup) was about 0.8% that day. At Woori Bank and Nonghyup, union executives mainly participated in the general strike, and the number of employees attending from other banks was not large.

On the other hand, the determination of national policy bank employees was resolute. About 5,000 people (according to union estimates) attended from IBK Industrial Bank of Korea, and nearly 2,000 gathered at the Korea Development Bank, which has about 3,200 employees in total. National policy bank employees opposed staff reductions and budget cuts in public institutions and the transfer of prime clients of national policy banks.

The Industrial Bank branch shouting strong opposition to the relocation of the national policy bank

In particular, the determination of Korea Development Bank employees opposing the relocation of the head office to Busan was strong. At the rally, KDB employees wore matching yellow shirts with the slogan "Only companies relocating to Busan from KDB get sick" and protested. KDB employees also led the march toward the Presidential Office. Before the strike, Cho Yoonseung, chairman of the KDB union, issued a statement saying, "It takes several years to review feasibility and analyze economic efficiency for the establishment of a subway line costing 2 to 3 trillion won. Why is there no analysis, investigation, or consultation for the decision to move KDB, which has assets worth 300 trillion won?" He added, "If KDB moves to Busan, it will lose competitiveness and become obsolete in the long term."

Many young bank employees in their 20s and 30s also attended the rally. An employee of a regional bank expressed particular frustration with the 'aristocratic union' frame. He said, "I agree with the agenda of low wage increases and unreasonable regional relocations, but what angers me the most is being labeled as an aristocratic union. I participated in the general strike six years ago, and as long as this frame continues, I plan to actively participate in future general strikes."

However, despite the Financial Union's general strike, there was little impact on the branches of commercial banks. Major commercial bank branches appeared calm that day. KB Kookmin, Shinhan, Hana, and Woori Banks operated normally. Although there were concerns about disruptions to the banking IT systems, the participation rate of IT personnel in the strike was 8.6%, lower than the overall participation rate of 9.4%, so there were no major issues. However, IBK Industrial Bank of Korea, which had a high strike participation rate, informed customers that "banking services may be delayed or limited on the 16th due to the general strike" and requested customers to avoid visiting branches on that day unless necessary.

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