'Black Clothes Protest' Over Organizational Separation and Relocation Rumors... FSS Employees Urge Governor Lee Chanjin to Engage in Dialogue

Union Sends Official Letter Requesting Meeting with Governor Lee Chanjin on September 8
Governor Lee Remains Silent Again on Media Questions About Opposition to Restructuring
Tensions Rise Over Public Institution Designation and Sejong Relocation Ru

"Governor Lee Chanjin of the Financial Supervisory Service, please listen to the voices of employees at least once, just as you have met with the CEOs of banks, insurance companies, and securities firms."

Acting Chairman Seop Jeongseop of the Financial Supervisory Service Labor Union (fourth from right) and other employees are protesting against the restructuring of the financial supervisory system on the first floor of the Financial Supervisory Service headquarters in Yeouido, Yeongdeungpo-gu, Seoul, on the morning of the 9th. Approximately 700 employees participated in the 45-minute protest starting at 8 a.m. Photo by Chae Seok Moon

The Financial Supervisory Service labor union and employees have launched collective action in opposition to the establishment of the Financial Consumer Protection Service, the designation of the Financial Supervisory Service and the new agency as public institutions, and the potential relocation to Sejong. Around 700 employees gathered in the main lobby of the headquarters wearing black T-shirts during the morning commute on September 9, urging the withdrawal of the organizational restructuring plan. The union had also sent an official letter to Governor Lee the previous day requesting a meeting, but Governor Lee remained silent in response to reporters' questions, further intensifying the conflict.

'Black Shirt Protest' with 700 Participants

About 700 union members and employees participated in the protest held in the first-floor lobby of the Financial Supervisory Service headquarters in Yeouido, Seoul, from 8 a.m. for 45 minutes. The participants chanted slogans nine times, demanding "withdrawal of the separation of financial consumer protection," "opposition to public institution designation," and "formation of an emergency response committee."

They expressed concerns that designating the agency as a public institution would undermine supervisory independence due to budget and personnel cost controls, and that efficiency would decline sharply if the relocation to Sejong became a reality.

If the Financial Supervisory Service is designated as a public institution, it will be subject to personnel and budget controls by the Public Institution Management Committee under the Ministry of Economy and Finance. There is also a possibility that welfare benefits, such as domestic and overseas training, will be reduced. Concerns have also been raised about workforce reductions, fewer promotion opportunities, and difficulties in career management. Additional burdens, such as mandatory ESG (Environmental, Social, and Governance) disclosures, are also expected. Ultimately, there is a high likelihood that the efficiency of prudential and business conduct supervision of financial companies will decrease and independence will be compromised.

Concerns about the potential relocation to Sejong are also significant. Although Senior Deputy Governor Lee Sehoon stated the previous day that "there has been no discussion about relocating either the Financial Supervisory Service or the Financial Consumer Protection Service in the recent restructuring talks," rumors about the relocation of the new agency to Sejong have persisted.

Protest participants also raised their voices regarding Senior Deputy Governor Lee's remarks at a closed-door meeting the previous day, where he effectively accepted the government's plan to separate the Financial Consumer Protection Department from the Financial Supervisory Service and establish the new agency. The previous day, Senior Deputy Governor Lee stated, "It is not a matter of whether we agree or disagree, but rather that public institutions must follow decisions made by the National Assembly through legitimate democratic procedures."

There was also sharp criticism of Governor Lee's comments about minimizing employee dissatisfaction by facilitating personnel exchanges between the Financial Supervisory Service and the new agency after the separation. Governor Lee said the previous day, "We will work to minimize your concerns through personnel exchanges between the Financial Supervisory Service and the Financial Consumer Protection Service and by improving employee treatment." Senior Deputy Governor Lee also stated regarding personnel exchanges after the separation, "We are considering not just temporary assignments, but actual changes in employment."

In response, Yoon Taewan, Vice Chairman of the Financial Supervisory Service labor union, said, "I cannot understand who is pushing for this organizational restructuring or why, but Governor Lee and Senior Deputy Governor Lee are simply telling us to follow it." He continued, "What they call personnel exchanges is essentially no different from sending employees on secondment to the new agency, and during that time, issues such as career management, attendance evaluation, training, and welfare are not being considered at all. It is just reckless talk." He added, "Senior Deputy Governor Lee's mention of personnel exchanges was not about soothing employee sentiment, but simply a message that they will proceed with secondments, which was truly disappointing."

The Financial Supervisory Service has announced plans to facilitate personnel exchanges between the two agencies even after the separation of the new agency next year and to form a task force to actively present its views during discussions in the National Assembly. However, unrest among employees has not subsided. Protest participants on this day insisted that management and the union should form an emergency response committee together and systematically communicate their opinions to the National Assembly's Political Affairs Committee and the Office of the President.

Strike Also Suggested as a Possibility

The labor union indicated that it may launch official industrial action, including a strike. In accordance with union regulations, a delegates' meeting will be convened, and starting today, discussions will be held on whether to hold a strike vote as early as next week.

The union is waiting for a response from Governor Lee after requesting a meeting. As for discussions with political circles, such as the National Assembly's Political Affairs Committee, it appears that no specific plans have yet been established.

Acting Chairman Jeong Seopseop of the Financial Supervisory Service labor union met with reporters immediately after the protest and said, "We have sent an official letter to Governor Lee requesting a meeting," expressing a willingness for dialogue by saying, "The employer and the union must move forward together." He added, "To proceed with a strike vote, a delegates' meeting must be held, and since it takes about a week to organize the meeting and submit agenda items according to union bylaws, we will have to monitor the situation until next week regarding the possibility of a strike."

Meanwhile, Governor Lee, who arrived at work at exactly 8 a.m. that day, did not answer reporters' questions such as, "What is your opinion on the organizational restructuring, given that employees are opposed?", "Are you willing to talk with the union?", and "Do you plan to consult with the Office of the President or the National Assembly's Political Affairs Committee?" and headed straight to his office.