IBK workers protest 'parachute CEO'

By Kim Bo-eun

The Industrial Bank of Korea's (IBK) labor union chief Kim Hyeong-seon stages a protest in front of Cheong Wa Dae against its plan to appoint an external government official as the state-run lender's next chief, Tuesday. / Courtesy of IBK's labor union

Industrial Bank of Korea (IBK) workers began a protest Monday over a rumor that Cheong Wa Dae is planning to appoint a government official as the state-run lender's next chief. The current CEO Kim Do-jin's term ends Dec. 27.

As a state-run lender, IBK's chief is appointed by the President, after recommendations are made by the Financial Services Commission chairman.

Members of IBK's union started the protest in front of Cheong Wa Dae, stating the presidential office was going to "parachute an unqualified government official" in as the next CEO.

According to the union, Cheong Wa Dae appears to have narrowed down its pool of candidates to two officials ― former presidential secretary for job affairs Ban Jang-sik, and ex-presidential economic affairs secretary Yoon Jong-won.

Other candidates that had been discussed included Financial Supervisory Service First Deputy Governor Yoo Kwang-yeol and chief negotiator for defense cost-sharing between Korea and the U.S. Jeong Eun-bo, who is a former finance ministry official.

All four candidates are former finance ministry officials, and are therefore part of the so-called "mofia." The term ― a portmanteau of “MOF,” which stands for Ministry of Finance, and the mafia criminal organization ― refers to the power wielded by officials at the ministry and their close “cooperation” with each other.

The union members are questioning the candidates' expertise in finance, banking and management. They are also taking issue with parachuting a government official into the position, as this is seen as the administration's attempt to control the institution.

"The IBK is a state-run financial institution for the purpose of assisting SMEs, but it runs hundreds of branches nationwide as do commercial banks, so it is much like a commercial bank," the union said in a statement drawn up with civic groups.

"Therefore a figure that has a deep understanding and clear vision for the banking business should be the IBK's chief."

“We will continue our protests and will consider staging a walkout if Cheong Wa Dae names the bank's chief from among the candidates,” a union member said.

The IBK's current chief, along with his predecessors Kwon Seon-joo and Cho Jun-hee, was appointed from within the bank. Former CEO Yun Yong-ro was the lender's last chief appointed from outside.