Gwangun Integrated Data Center Relocated to Jeonbuk... Union Says "Local Funds Flowing Out"

Facility Consulting Conducted Following FSS Audit
Full Operation Planned for 2028 at Jeonju Carbon Industrial Complex
"Center is the Heart... JB Group Sees It as a Cash Cow"

The Gwangju Bank Branch of the National Financial Industry Labor Union held a general assembly to resolutely oppose the relocation of the data center to Jeonbuk on the 19th at the 3rd floor of Gwangju Bank. Photo by Min Chanki

The labor union of Kwangju Bank under JB Financial Group has voiced opposition to the plan to newly establish and relocate the integrated IT center to Jeonju, North Jeolla Province.

According to Kwangju Bank and others on the 19th, JB Financial Group has been actively pushing ahead since last month with the joint construction of an IT center for its subsidiaries, Kwangju Bank and Jeonbuk Bank.

Previously, the Financial Supervisory Service recommended in its comprehensive audit of Kwangju Bank and Jeonbuk Bank in 2023 that they establish a mid- to long-term operational plan, including the construction and relocation of a data center. In line with this recommendation, JB Financial Group conducted facility diagnostic consulting from May to December last year, analyzing the pros and cons of each alternative.

The group established a strategy for building the integrated IT center and conducted on-site inspections at two locations: the AI Convergence District in Advanced 3 District, Gwangju, and the Carbon Industrial Complex in Jeonju, North Jeolla Province. In mid-last month, the group selected the Jeonju Carbon Industrial Complex as the final site for the integrated IT center. With an investment of 67 billion KRW, the group plans to purchase the land, design, construct a new building, and relocate systems, aiming to begin full-scale operations in 2028.

The current IT center at Kwangju Bank's headquarters centrally manages IT information such as customer data from each branch and customer center, including internet and mobile services. The integrated IT center, whose main purpose is to provide a stable physical space for the IT system, will be operated by a small team of fewer than 10 people.

In response, Kwangju Bank's union and employees are protesting, stating, "Relocating the IT center to North Jeolla Province is no different from causing an outflow of local funds."

The Kwangju Bank branch of the National Financial Industry Labor Union has been conducting a signature campaign among all employees against the relocation of the IT center to North Jeolla Province since the 6th. So far, about 1,600 employees, or around 90% of staff at the headquarters, Seoul, and other branches nationwide, have participated in the campaign.

On the 19th, members of the Gwangju Bank branch of the National Financial Industry Labor Union held a head-shaving ceremony at the Gwangju Bank Computer Center Jeonbuk Relocation Opposition Delegates' Meeting held on the 3rd floor of Gwangju Bank. Photo by Min Chanki

On this day, the Kwangju Bank union issued a statement, saying, "JB Financial Group regards Kwangju Bank merely as a cash cow and has weakened its growth potential through excessive cash dividends of 576.3 billion KRW over the past five years," and added, "The cash dividend of 150 billion KRW last October, which was donated for Kwangju Bank's capital increase, is seen merely as another means of exploitation."

The union further criticized, "Even for convenience facilities such as training centers, although we have land for the Hwasun Training Center, 100 billion KRW was invested to open a training center in Jeongeup, North Jeolla Province, with 100 million KRW in monthly operating costs. The IT center is like the heart of the bank, so how can it be relocated to North Jeolla Province?"

Meanwhile, the union added, "As the representative regional bank of Gwangju and South Jeolla, Kwangju Bank has a mission to support local small businesses and inclusive finance, and to promote virtuous economic circulation by preventing the outflow of local funds. Relocating the IT center to North Jeolla Province would hinder regional economic revitalization and is no different from causing an outflow of local funds."

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