Strikes have been a common scene in Korea this year, and the traditional banking picketers took to the streets that they surrendered to IT workers earlier on demanding bigger compensations from AI windfall.
Their banner cry was less on wages but say on where they work.
Despite the still-summery heat, thousands of finance workers gathered in central Seoul from Friday morning for a mass strike, with employees of three major state-run banks leading opposition to the government's renewed push to move public institutions outside the capital.
The strike was organized by the Korea Financial Industry Union (KFIU), an industry-wide labor group representing workers across banks and other financial institutions. Employees of Korea Development Bank (KDB), Industrial Bank of Korea (IBK) and the Export-Import Bank of Korea made up some of the largest groups in the crowd.
The rally ran from 11:30 a.m. to 3 p.m. along Sejong-daero in central Seoul's Gwanghwamun district. The union estimated that about 30,000 people took part.
By late morning, Lee Jae-ik, vice chair of the KDB labor union, stood among the crowd holding a large union flag. He said relocation would affect both workers' families and the bank's ability to retain experienced staff.
“For dual-income couples, the biggest concern is having to live apart,” Lee said over the noise of the rally. “You would see many more couples split between Seoul and another city during the week. In some cases, one spouse might have to give up a career.”
He pointed to London and Hong Kong as examples of major financial centers that benefit from having key institutions and professionals clustered in one place.
“Finance runs on networks,” Lee said. “Once you break that concentration, you risk losing competitiveness.”
The concern lies at the heart of opposition from the three state-bank unions. They argue that moving their headquarters could disrupt ties with companies, financial firms, regulators and specialized staff concentrated in the capital.
The protest came a day after the government announced plans to accelerate a second round of public institution relocations.
About 350 public institutions in the Seoul metropolitan area are under review, with the government seeking to minimize the number allowed to remain in the capital region. A detailed relocation plan is due in the fourth quarter, with moves scheduled to begin in 2027.
KDB, IBK and the Export-Import Bank have not yet been formally designated for relocation, but uncertainty over their fate has already unsettled employees.
Lee recalled the impact of an earlier relocation push. “We lost a lot of experienced people during the last relocation push. Vacancies opened up at the manager level, and we had to fill the gaps with juniors. If this happens again, I think there could be another round of departures.”
About 2,200 KDB employees participated in Friday's action, Lee said. The union plans to survey workers on how they would respond if another relocation plan is formally proposed.
Concern about losing skilled staff was echoed by younger employees standing in the sweltering heat.
A KDB employee in his 30s who declined to give his name said most of the bank's clients remain concentrated in Seoul.
“Most of the clients we actually deal with are in Seoul,” he said. “If the bank moves farther away, communication will become harder and slower, and that could weaken our competitiveness.”
“What worries me even more is that strong candidates may stop seeing KDB as an attractive place to work in the first place.”
His family is originally from Busan, the employee said, but he still supported keeping KDB's headquarters in Seoul because of the nature of its work.
Another female employee in her 30s, who asked to be identified only by her initials H.J., voiced similar concerns.
“There are already a lot of people around me saying they would leave if the bank moves,” she said. “Finding another job is hard enough as it is. Now people are wondering what they are supposed to do if they suddenly have to move.”
Lee said the KDB union would continue its campaign through the fourth quarter and could consider a separate strike if the relocation plan moves forward.
“We will continue to try our best.”
Relocation was not the only issue behind Friday's walkout.
The broader KFIU is also calling for a 4.5-day workweek based on a 35-hour week, increased youth hiring, a higher retirement age, changes to the wage-peak system that reduces compensation for older workers approaching retirement and a 6 percent wage increase.
The KFIU said further strikes could follow depending on the progress of negotiations with employers.
AJP Takeaways
- Thousands of finance workers joined a mass strike in central Seoul on Sept. 4, with employees of KDB, IBK and the Export-Import Bank leading opposition to possible headquarters relocations.
- KDB union Vice Chair Lee Jae-ik said about 2,200 KDB employees joined the action and warned relocation could trigger further staff departures and weaken recruitment.
- About 350 public institutions in the Seoul metropolitan area are under review for a second round of regional relocation, with a detailed plan due in the fourth quarter and moves scheduled to begin in 2027.
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