Financial Unions Strike Over Government Relocation Plan
As the government officially announced the 2nd phase of provincial relocation, declaring the principle of ‘minimizing retention in the Seoul metropolitan area’ for about 350 public institutions located in the capital region, public institutions and government circles, including state-run banks, are
The government has announced the second phase of provincial relocation, targeting 350 public institutions in Seoul, with a focus on minimizing their presence in the capital. This decision has sparked significant concern among state-run banks, including the Korea Development Bank, Export-Import Bank of Korea, and Industrial Bank of Korea.
The National Financial Industry Union, representing over 20,000 labor union members, has initiated a general strike, demanding prior agreement with unions before headquarters relocation, a 4.5-day workweek, and a 6.0% wage increase. The union argues that the provincial relocation of financial institutions will weaken policy finance functions, as the industry thrives on concentrated human resources, government collaboration, and market networks.
The government's move to consolidate and abolish several power generation companies and port authorities has added to the workers' anxiety about relocating their living bases once again. The Financial Services Commission, though temporarily excluded from the target list, is also feeling the pressure, with young public officials considering job changes due to the uncertainty surrounding their future deployments.
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