Financial workers take to streets over state-run banks' potential relocation
Members of the Korea Financial Industry Union, a major umbrella labor group, stage a rally in Gwanghwamun, central Seoul, Friday, protesting the government's move to relocate public financial institutions out of Seoul. Yonhap
Union says Seoul already financial hub, questions need for move
Unionized workers in the financial sector took to the streets Friday to oppose the government's consideration of relocating state-run banks and other public financial institutions out of the capital.
The Korea Financial Industry Union (KFIU), a major umbrella labor group, staged a strike in Gwanghwamun Square in central Seoul, drawing about 30,000 members, according to organizers. Police estimated the turnout at 14,000.
The rally focused on the prospect of relocating state-run banks, including Industrial Bank of Korea (IBK), Korea Development Bank (KDB) and Export-Import Bank of Korea (Eximbank).
KFIU Chairman Yoon Seok-gu said the union opposed relocating financial institutions for political reasons, arguing that Seoul already serves as a major financial hub.
"Major financial centers such as New York, London, Tokyo and Hong Kong have their financial institutions concentrated in their cities, and Seoul is fully capable of serving the same role," Yoon said.
"What kind of logic is it to simply tell us to go somewhere else without any clear reason or justification?" he said.
The union's other demands included the introduction of a 4.5-day workweek, expanded welfare programs, extension of the retirement age and wage increases reflecting inflation.
Several lawmakers from both the ruling and opposition parties attended the rally in solidarity, including Rep. Lee Yong-woo of the ruling Democratic Party of Korea and Rep. Kim Hyeong-dong of the main opposition People Power Party.
The rally came a day after the government unveiled a road map to relocate most public institutions currently based in the capital region as part of its decentralization drive.
The plan, announced at a government-wide briefing led by Prime Minister Han Seong-sook, calls for the phased relocation of about 350 public institutions to other parts of the country.
Members of the Korea Financial Industry Union, a major umbrella labor group, stage a rally in Gwanghwamun, central Seoul, Friday, to protest the government's move to relocate public financial institutions out of Seoul. Yonhap
The government said relocations to Sejong, the country's administrative capital, will begin in the first half of 2027, starting with the Ministry of Justice and the Ministry of Gender Equality and Family.
It did not provide specific details or timelines for financial authorities, including the Financial Services Commission (FSC) and Financial Supervisory Service (FSS), or state-run banks, which had been widely expected to be included in the relocation plans.
The government said only that the institutions subject to relocation would be finalized in the fourth quarter.
The FSC and FSS have been mentioned as potential candidates for relocation to Sejong, with KDB and Eximbank potentially moving to Busan and IBK to Daegu.
Members of the Korea Financial Industry Union, a major umbrella labor group, stage a rally in Gwanghwamun, central Seoul, Friday, to protest the government's move to relocate public financial institutions out of Seoul. Yonhap
The FSS labor union, which has been fiercely opposing the potential relocation, submitted a petition to President Lee Jae Myung on Friday.
"Separating private financial companies, policy lenders and financial regulators that need to operate like a single organism would weaken communication, which is needed to swiftly detect subtle changes in market conditions," the petition read. "This would ultimately undermine the competitiveness of the country's financial industry."
In a survey of 1,538 employees conducted by the FSS labor union, 85.6 percent said they would consider leaving the organization if it were relocated outside Seoul, the petition noted, urging the president to reconsider the relocation plan.