Recently, state-run banks such as Korea Development Bank and Industrial Bank of Korea (IBK) have been ailing under labor unions' shows of force. Korea Development Bank withdrew an executive appointment midway due to union backlash, and the Industrial Bank of Korea (IBK) union decided to stage a general strike over wages.
According to the financial sector on Jan. 4, Industrial Bank of Korea (IBK) decided to stage a general strike at the end of this month while urging improvements to the total personnel cost system. In a strike ballot of all union members on the 23rd, the approval rate was 91%. Industrial Bank of Korea (IBK) also carried out a general strike at the end of 2024.
The union argues that under the total personnel cost system, overtime pay and performance bonuses are not paid. The total personnel cost system allows public institutions to execute wages and allowances only within the annual cap on total personnel costs set by the government. Industrial Bank of Korea (IBK) is classified as a quasi-governmental institution and is subject to the total personnel cost system. The union claims that about 10 million won in overtime pay per employee was not paid. It is also demanding payment of special performance bonuses for excess performance.
Earlier, President Lee Jae-myung said at a Financial Services Commission work briefing on the 19th, "Industrial Bank of Korea (IBK) workers are in an uproar because of unpaid wages. Isn't the total personnel cost system the reason?" and instructed, "The Industrial Bank of Korea (IBK) chief should present a real solution, and the policy chief should review solutions."
On the 29th, Korea Development Bank announced executive appointments but excluded appointments for key posts, including the senior executive vice president and the head of the innovation growth finance division (vice president). Originally, Vice President Lee Bong-hee of the corporate finance division and Kim Sa-nam, head of the venture finance headquarters, had been tapped as senior executive vice president and vice president, respectively, but they were left out of the announcement that day.
According to the industry, the withdrawal of the appointments stemmed from union backlash. The union reportedly demanded the withdrawal because the nominees were involved in the Yoon Suk-yeol administration's transfer of Korea Development Bank's headquarters to Busan.
Lee served as chief of staff to former Chair Kang Seok-hoon, who had pushed the transfer of Korea Development Bank to Busan, and Kim served as head of the task force preparing for the Busan move. Korea Development Bank is said to be seeking a different appointee for the head of the innovation growth finance division. However, the appointment of the senior executive vice president has not been fully withdrawn.
The union is currently staging a sit-in with tents in the lobby of Korea Development Bank's headquarters in Yeouido, Seoul. The union plans to continue the sit-in until the executive appointments are finalized. A union official said, "We will continue to convey the branch's position to management until the personnel results are fully finalized."