The conflict between the government and labor unions over the relocation of financial institutions is expected to escalate. Although the government has postponed decisions regarding the relocation of the Financial Services Commission and the Financial Supervisory Service to the fourth quarter of this year, the National Financial Industry Union (financial union) has announced plans to proceed with a nationwide strike, citing unresolved uncertainties.
On September 3, the government announced plans for the relocation of administrative and public institutions and reforms of public institution functions at the Government Seoul Office. While the Ministry of Justice and the Ministry of Gender Equality and Family's relocation to Sejong was disclosed, the Financial Services Commission was not specifically included in the relocation targets. Plans for the relocation of the Financial Supervisory Service and state-owned banks were also omitted from this announcement.
However, the government has not rescinded its relocation policy for financial institutions. Yoon Ho-jung, Minister of the Interior and Safety, stated, "The institutions not mentioned today are not excluded from the relocation targets," adding that the government plans to finalize the list of institutions for relocation in the fourth quarter. The government intends to determine specific targets and timelines after consultations with relevant agencies and public hearings, with plans to begin the relocation process in the first half of next year.
The financial union has decided not to lower its response level simply because the government has delayed its decision. The National Financial Industry Union held a press conference on the same day, confirming that it will proceed with the planned nationwide strike on September 4 and continue its efforts to prevent the relocation of financial institutions. Preliminary estimates indicate that over 20,000 participants are expected to join the strike.
In this strike, the financial union has listed the halt of financial institution relocations, the introduction of a 4.5-day workweek, wage increases, and expanded youth hiring as key demands. During wage and collective bargaining negotiations that have been ongoing since April, the union reduced its wage increase demand from 8% to 6%, but management has maintained a 2.5% offer, resulting in a lack of agreement.
As the government pushes for a second round of public institution relocations, the issue of relocating financial institutions has expanded beyond labor negotiations to become a broader government confrontation. The financial union has activated a task force to prevent relocations since the beginning of the year and is demanding that any plans for headquarters relocations be communicated to the union in advance and included in collective agreements.
The union argues that the effects and side effects of the first round of public institution relocations must be verified first. They contend that issues such as inadequate living conditions and the outflow of skilled professionals from relocated institutions need to be addressed before discussing a second round of relocations.
Yoon Seok-gu, chairman of the financial union, stated, "Finance is an industry where concentration and collaboration are more important than others," emphasizing that having companies, financial institutions, policy and supervisory agencies, and professionals close together to share information and make quick decisions is crucial for competitiveness.
The financial union plans to escalate its actions, including additional strikes, if the government pursues relocations without sufficient consultation with stakeholders. With the government's final decision postponed to the fourth quarter, the conflict between labor and management in the financial sector over wage negotiations and relocations is expected to continue for the foreseeable future.
* This article has been translated by AI.
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