South Korean financial unions announce strike over bank relocations

The Korean Financial Industry Union has announced a general strike scheduled for next month, following a 96.1% approval rate in a recent labor action vote. The union is demanding the implementation of a 4.5-day work week, real wage increases, and opposition to the government's plan to relocate financial institutions to regional areas.

Labor unions from the Korea Development Bank, Industrial Bank of Korea, and Export-Import Bank of Korea held a joint protest in Yeouido, Seoul, to oppose the second phase of public institution relocation. They argued that forcibly moving key national banks could damage financial competitiveness and negatively impact the national economy, questioning how South Korea could compete with global financial hubs like London, New York, and Singapore if its core institutions are mechanically dispersed.

As the government prepares to announce plans for the relocation of approximately 350 public institutions, local governments are competing to attract them to boost regional growth. However, concerns remain regarding potential political favoritism in the selection process and the need to ensure that relocation aligns with regional industrial ecosystems to avoid the limitations seen in previous relocation efforts.