Sept. 4 (Asia Today) — Thousands of South Korean financial workers launched a general strike in central Seoul on Friday to oppose the government’s planned relocation of public institutions outside the capital region.
The Korean Financial Industry Union held its first general strike rally in about a year on Sejong-daero in Seoul’s Gwanghwamun district, beginning at 11 a.m.
Workers from 43 union branches participated, including employees of the Korea Development Bank, Industrial Bank of Korea and Export-Import Bank of Korea as well as commercial banks, regional banks and public financial institutions.
Organizers estimated attendance at about 30,000, while police informally estimated about 14,000 participants.
Union members filled the road between Dongwha Duty Free and the direction of Deoksugung Palace, carrying signs calling for an end to regional relocation plans, introduction of a 4.5-day workweek and increases in real wages.
The union argues that relocating public financial institutions from Seoul could lead to an exodus of specialized personnel, reduce the efficiency of policy financing and weaken the benefits of concentrating financial institutions and expertise in one location.
Yoon Seok-gu, chairman of the union, criticized what he described as an indiscriminate push to relocate institutions.
“The reason financial institutions should remain in Seoul is not political and it is not because workers simply do not want to live apart from their families,” Yoon said.
“Advanced financial centers overseas also concentrate their economic capabilities in financial hubs, so financial institutions need to remain in Seoul for the sake of the South Korean economy.”
Politicians from both the ruling and opposition parties attended the rally, along with leaders of South Korea’s two major labor organizations.
Participants included Democratic Party lawmakers Lee Hak-young and Lee Yong-woo, People Power Party lawmaker Kim Hyung-dong, Rebuilding Korea Party lawmaker Shin Jang-sik and Social Democratic Party lawmaker Han Chang-min.
Kim Dong-myung, chairman of the Federation of Korean Trade Unions, and Yang Kyung-soo, chairman of the Korean Confederation of Trade Unions, also attended.
Kim Hyung-dong said relocation of public financial institutions should require approval from the National Assembly.
“I believe the relocation of public financial corporations and institutions outside Seoul must receive the consent of the National Assembly,” Kim said. “We will work to prevent the government from pursuing relocation unilaterally.”
The union is also seeking a 4.5-day workweek and increased hiring of young workers.
It argues that productivity gains resulting from digitalization should be used to reduce working hours and expand employment.
“Since the five-day workweek was introduced in 2002, banking business hours have not been shortened by even 10 minutes in 24 years,” Yoon said.
“About 95% of transactions, including money transfers, are now conducted remotely and artificial intelligence is developing rapidly, so I want to ask why working hours cannot be reduced.”
Wages are another point of disagreement between labor and management.
The union lowered its initial demand for an 8% pay increase to 6%, while employers have maintained an offer of 2.5%.
The union is also calling for an extension of the retirement age and changes to the wage-peak system, under which workers’ salaries are gradually reduced as they approach retirement.
Some union members expressed concern that demands for higher wages and shorter working hours could overshadow opposition to the relocation policy.
A state-run bank official said financial-sector employees are often perceived as highly paid workers with desirable jobs, which could make it difficult to gain public sympathy for the strike.
There were concerns that the large-scale walkout could disrupt banking services, but institutions reported limited effects.
The Korea Development Bank union estimated that 1,900 to 2,000 workers participated, representing about 80% to 90% of its union membership. Management said there were no significant disruptions.
About one-third of Industrial Bank of Korea employees participated in the rally, but the bank said it deployed nonunion workers to branches and kept all locations operating normally.
The union secured authorization for industrial action last month when 96.05% of participating members voted in favor.
It said it will decide whether to stage a second general strike or take further action after assessing the response from employers and the government.
— Reported by Asia Today; translated by UPI
Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260904010001800
