New IBK chief faces union protest over 'parachute appointment'

Union members at the Industrial Bank of Korea (IBK) block Yoon Jong-won, center, new leader of the state-run bank, from entering the bank's headquarters in Seoul, Friday. Yonhap

By Lee Min-hyung

The union at the Industrial Bank of Korea (IBK) pledged to stage an all-out protest against Yoon Jong-won, new leader of the state-run bank, as he was “parachuted in” for the position due to political connections with the incumbent administration.

The ex-presidential secretary failed to enter IBK headquarters on the first day of his term on Friday amid fierce opposition from a crowd of union members.

They denounced Yoon as an “unprofessional and parachuted bureaucrat” unqualified for the position, as he has no prior experience in the banking industry.

Yoon is an expert in finance and economic policies having taken a number of key posts at the Ministry of Economy and Finance. He also served as an economist at the International Monetary Fund for about three years since November 1997.

He worked as a senior secretary to President Moon Jae-in for economic affairs for about a year starting June 2018.

But the IBK union expressed its determination to continue strong protests against the appointment.

“The government also said parachute appointments are poison,” said Kim Hyung-seon, chief of the IBK union. “It would be better for Yoon to step down from the post voluntarily by stopping imposing a burden on the President and the incumbent administration.”

Yoon, however, shared his determination to retain the position by resolving the union's opposition through dialogue.

“I do not think I am unqualified for the position,” he said. “I will keep having conversations and listening to the voices from the union.”

The union vowed to continue taking stronger protests against the “unbecoming” appointment from the government. The protest would last at least until the April 15 general elections, according to the union.

This is the first time since 2010 that an outsider has been appointed to lead the state-operated bank. The union claimed it is hard to understand why the government named an outside figure even when the bank has reported steady growth for the past decade under the leadership of internal professionals.

A spokesperson at IBK said nothing specific has been confirmed over what Yoon's next step will be.

“Yoon will continue to contact the leadership of the union for talks, but nothing has been confirmed as of now,” the official said.

As the union is blocking Yoon from entering his office, he is expected to do his work at some other location near the headquarters for some time.