The summer labor disputes, known as 'Hatu' in the finance sector, are expected to intensify this year. The push for increased bonuses, particularly among internet banks, is gaining momentum, alongside collective actions opposing the regional relocation of financial public institutions.
According to the finance sector on July 29, the KakaoBank union plans to strike on July 31, marking its first strike since the bank's establishment in 2017.
The union demands an increase in employee wages and bonuses, citing a 3 billion won increase in the cap on executive compensation this year. While the two sides discussed a salary increase of 5-6%, they have yet to reach a final agreement.
The company has proposed a plan to distribute bonuses equivalent to 10% of operating profit, combining cash and company stock. It also emphasized that employee treatment has been steadily improving.
The average annual income for KakaoBank employees is projected to exceed 100 million won in 2024, rising from 96.91 million won in 2023 and 113.83 million won last year. This figure is comparable to the average annual salary of the four major banks (KB Kookmin, Shinhan, Hana, and Woori), which stands at 122.75 million won. The average bonus per employee has also tripled over the past two years to 18.02 million won.
Despite these increases, the union insists that the compensation gap between executives and employees remains significant, prompting their decision to proceed with the strike.
The collective actions are not limited to KakaoBank. Unions from the three major state banks—Korea Development Bank, IBK, and Export-Import Bank of Korea—are planning a joint rally on August 11 to oppose the regional relocation of financial public institutions.
Following President Lee Jae-myung's announcement on July 23 regarding a large-scale relocation of public institutions during a national discussion on real estate policy, unions are escalating their responses.
Relocating the headquarters of state banks would require legislative changes. Observers note that discussions on regional relocation may gain momentum now that the Democratic Party holds the chairmanship of the National Assembly's Political Affairs Committee.
The state bank unions argue that relocating would weaken synergies among policy finance institutions, reduce operational efficiency, and inevitably lead to the loss of key personnel. On the same day, the NH Nonghyup branch, which is also mentioned for a potential move to Naju, held a rally against the relocation in Seoul's Gwanghwamun area, attended by 4,000 members.
With this year's wage negotiations in the finance sector coinciding with these issues, the potential for prolonged labor disputes is increasing. The finance union is demanding an 8% wage increase, while employers have proposed a 2.5% increase. The finance union is also considering linking wage negotiations with the issue of relocating financial public institutions, leaving open the possibility of a general strike.
A finance sector official stated, "This year, issues regarding wages, bonuses, and the regional relocation of financial public institutions have converged, leading to a heightened atmosphere of labor activism among finance unions compared to previous years."
* This article has been translated by AI.
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