Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
IBK chief sued for allegedly violating labor rights
By Lee Min-hyung
Industrial Bank of Korea CEO Yoon Jong-won
By Lee Min-hyung
Industrial Bank of Korea (IBK) CEO Yoon Jong-won is being sued for allegedly violating labor rights by the bank's union, which accused him Wednesday of violating the Labor Standards Act and a collective agreement by forcing employees to work over 52 hours a week.
Under a new system introduced in 2018, the government slashed the maximum weekly work hours to 52 from 68 for companies with over 300 employees.
The union argued that the management of the lender intentionally manipulated computer systems to not leave any evidence that its staff worked more than 52 hours a week.
With the coronavirus outbreak dealing a blow to the local economy, the state-run lender recently began offering an aggregate 600 billion won ($466.6 million) in loans to small- and medium-sized enterprises under a government plan to ensure their liquidity.
For this reason, officials from IBK's sales branches are busy handling many requests regarding the loans.
“Our employees are working overtime at night and even work at home even after leaving the office, as they do not have enough time to complete their tasks regarding the loans after the coronavirus spread across the country,” said IBK union chief Kim Hyung-sun.
The complaint is seen as part of the union's power struggle against the new IBK chief who took office in late January. He was supposed to start his term earlier, but failed to do so for about a month due to an angry protest from the union. They opposed the appointment of Yoon due to what they called a lack of practical experiences in the banking industry, calling him a “parachuted bureaucrat” from Cheong Wa Dae.
The lender's share price has been on a steep decline since the beginning of the year because of the series of controversies surrounding the new leader. IBK shares were traded at around the 10,000-won mark at the start of 2020, but fell to the 6,000 won range as of Thursday.