[Gwanga in] The nickname 'Haneun-sa' also loses meaning before salaries... Haneun-men's picket protest

Main Point of Transferring Wage-Setting Authority to the Monetary Policy Committee: Urging 'Amendment to the Bank of Korea Act'
Concern over Core Talent Drain Despite 'Average Annual Salary of 100 Million Won'
Ministry of Economy and Finance: "Having Issuance Power but Refusing Control"

"Your salary and welfare depend on the amendment of the Korean Bank Act (Korea Central Bank Act)."

The Korea Central Bank Labor Union has been holding picket protests in front of the building during the morning commute since the 18th, demanding that the wage decision authority be transferred to the Monetary Policy Committee. The trigger for this protest was the "Korean Bank Act Amendment Bill" jointly proposed by Assemblyman Han Byung-do of the Democratic Party of Korea on the 23rd of last month. The main point of the amendment is to transfer the wage decision authority of the Bank of Korea from the Ministry of Economy and Finance to the Monetary Policy Committee and to submit the Bank of Korea's budget to the National Assembly's Finance and Economy Committee at least 30 days before the start of the fiscal year. Currently, under the Korean Bank Act, salary-related expenses must be approved by the Ministry of Economy and Finance, but the amendment would allow the Monetary Policy Committee, the Bank of Korea's highest decision-making body, to decide independently. The Bank of Korea labor union is also conducting a signature campaign during lunch breaks to support the amendment of the Korean Bank Act.

Members of the Bank of Korea labor union have been continuing their work attendance protests urging the revision of the Bank of Korea Act since the 18th. Photo by Jo Yongjun jun21@

Last year, the average annual salary per employee at the Bank of Korea was 103.31 million KRW, and the average salary for new employees was 51.76 million KRW. The average annual salary per employee is lower than that of commercial banks. Last year, the average annual salaries were 114.59 million KRW at Hana Bank, 113.69 million KRW at Kookmin Bank, and 109.7 million KRW at Shinhan Bank, all surpassing the Bank of Korea's salary. While commercial banks have raised wages due to improved business performance, the Bank of Korea's wage increase rate has remained at 1-2%, considering civil servant wage increase rates. In nearly 10 years, the Bank of Korea's wage increase rate has exceeded 2% only twice.

The labor union believes that wage decisions must be made within the Monetary Policy Committee, their own organization, to increase the raise rate and is pushing for the passage of the amendment. Through explanatory materials distributed via the internal intranet, the Bank of Korea labor union stated, "If the law is amended, it will open the way for independent labor-management negotiations and wage normalization. Otherwise, we will continue to be strangled by the Ministry of Economy and Finance, with real wages cut and subjected to various demands from Ministry officials," and appealed, "Why should our Bank of Korea, which autonomously conducts monetary policy, be interfered with by junior Ministry of Economy and Finance officials?" Yoo Hee-jun, the union chairman, said, "The so-called '100 million KRW annual salary' is an amount that can only be earned after 15 years," adding, "There is no such organization in the financial sector."

The Ministry of Economy and Finance holds the view that considering the influence the Bank of Korea has on the nation, wages should not be decided internally without external control. A Ministry official explained, "The Bank of Korea, which has the issuing authority to print currency, has stronger public characteristics than other financial public enterprises," and added, "At least some checks and balances are necessary." The official further pointed out, "Even constitutionally independent institutions like the Constitutional Court or the Supreme Court have their budgets, including personnel expenses, prepared by the government and finalized by the National Assembly. I am not sure if it is appropriate for the legally independent Bank of Korea to refuse external control."

Within the Bank of Korea, opinions between the labor union and executives are divided. While the need for salary increases has been emphasized by Bank of Korea Governor Lee Chang-yong, it seems difficult to voice differing opinions in order to maintain relations with the Ministry of Economy and Finance. A National Assembly Finance and Economy Committee official said, "If the Ministry opposes, it will be difficult for the amendment to pass anyway, and it seems the Bank of Korea thinks that actively putting the wage decision authority transfer on the agenda will damage relations." In response, the Bank of Korea labor union criticized, "Even though we are doing our utmost, it is a regrettable situation that the Bank of Korea itself, the main party, is responding lukewarmly."

The part that management is more sensitive about is the clause related to budget submission. If the amendment passes, the Bank of Korea must report (submit) its general budget to the National Assembly at least 30 days before the fiscal year. A Bank of Korea official said, "Until now, we only had to provide materials on items requested by the National Assembly as needed, but if the law is amended, we will have to disclose the entire general budget from the start," calling it "a burdensome point from the management's perspective."

Concerns about the outflow of key internal talents due to dissatisfaction with treatment at the Bank of Korea are growing. According to data on employee resignation (job change) status by years of service submitted by the Bank of Korea to Assemblyman Han Byung-do's office, the number of Bank of Korea resignations increased by about 60%, from 99 in 2018 to 160 last year. Not only low-tenure employees but also skilled senior employees are leaving the organization for better treatment. Recently, Kim Jeong-seong, head of the Price Research Team at the Research Department, decided to move to the ASEAN+3 Macroeconomic Research Office (AMRO). The Bank of Korea has reportedly not recovered from the shock of consecutive departures, including Kwon Hyo-seong, head of the Policy Analysis Team at the Monetary Policy Department, who left for Bloomberg after being offered a high salary.

However, it is uncertain whether this protest will gain public sympathy. A Bank of Korea official said, "The outflow of personnel is a phenomenon spreading not only in the Bank of Korea but throughout public organizations," adding, "While it is true that salaries are lower compared to other financial public enterprises, from the public's perspective, an average annual salary of 100 million KRW is still a high level, so the message that the amendment is for 'improving treatment' is delicate."

Members of the Bank of Korea labor union have been continuing their protest at work since the 18th, urging the revision of the Bank of Korea Act. Photo by Jo Yongjun jun21@

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