The Financial Supervisory Service plans to hold its labor-management council aimed for the end of this month to hold its first discussion with the labor union elected this year on improving the aggregates personnel expense system. The aggregates personnel expense system means the Financial Supervisory Service receives in one lump sum from the Financial Services Commission the personnel costs to be used for one year without dividing them into detailed items. Under this system, the Financial Supervisory Service has continued to be unable to pay some employees' overtime allowances. As Industrial Bank of Korea, which recently faced the same issue, paid unpaid allowances, discussions appear to be gaining momentum at the Financial Supervisory Service as well.
According to the financial authorities on the 17th, the Financial Supervisory Service plans to convene a labor-management council at the end of this month to discuss with the union welfare-related agenda items, including the aggregates personnel expense system. The improvement plan is expected to include measures such as requesting the Financial Services Commission to approve payment of unpaid overtime allowances, or to allocate a separate budget for overtime allowances apart from aggregates personnel expenses. The Financial Supervisory Service's labor-management council usually meets once every quarter. With the term of union chief Kim Sang-woo, senior investigator at the Consumer Communication Bureau, and vice chief Yoo Ha-rim, senior investigator at the Asset Management Supervision Bureau, having begun on the 1st, this will serve as their first discussion.
The Financial Supervisory Service union has been continuously calling for matters related to the aggregates personnel expense system. In both 2024 and last year, the Financial Supervisory Service exhausted its budget in the first half, failing to properly pay employees for overtime work. Financial Supervisory Service Governor Lee Chan-jin also said at the National Assembly audit in Oct. last year that full cash compensation was difficult and substitute leave had to be provided. Last year, the Financial Supervisory Service's average overtime allowance per person was 5.19 million won, down about 300,000 won from the previous year (5.5 million won).
Industrial Bank of Korea, which had the same problem, on the 15th of last month paid 83 billion won in unpaid allowances to employees in a lump sum. When the Financial Services Commission sent an official letter on the 14th of last month approving the payment of allowances to Industrial Bank of Korea, the bank convened its board the very next day and approved the payment of the unpaid allowances. With the payment by the state-run Industrial Bank of Korea going through, talks within the Financial Supervisory Service also appear to be accelerating.
An official at the Financial Supervisory Service said, "We will discuss broad issues with the union, including pay, welfare, and personnel."