South Korean financial unions protest against relocation

South Korean financial labor unions have organized protests and announced a general strike to oppose the government’s plan to relocate public financial institutions to regional areas.

Initially, unions representing the Korea Development Bank, Industrial Bank of Korea, and Export-Import Bank of Korea held joint protests in Seoul. They argued that dispersing core national banks could damage financial competitiveness and the national economy. These unions also demanded a 4.5-day work week and real wage increases.

As the situation progressed, unions from the Financial Supervisory Service (FSS) and the Korea Deposit Insurance Corporation (KDIC) joined the opposition. During a press conference at the Presidential Office, they warned that moving oversight bodies away from the capital could create gaps in the national financial safety net and delay critical decision-making during economic crises. The FSS union highlighted significant potential for staff turnover; a survey of 1,538 employees indicated that 85.6% would consider changing jobs if headquarters were relocated, with the figure rising to 92.5% among employees under 40. Specifically, 90.6% of accountants and 94.2% of lawyers within the FSS expressed similar intentions.

On September 4, the Korean Financial Industry Union (KFIU) launched a general strike in Seoul’s Gwanghwamun area. The rally drew between 14,000 and 30,000 participants from 43 union branches, including workers from commercial and regional banks. Protesters demanded the prevention of bank relocations, a 4.5-day work week, and a 6% wage increase, noting that management has only offered approximately 2.5%. Union leaders warned that relocation could trigger an exodus of specialized personnel and reduce the efficiency of policy financing.