Worker-management row escalates as KDB relocation plan materializes
The logo of Korea Development Bank (KDB) is seen on a stone block outside the bank's headquarters in Yeouido, Seoul in this 2021 file photo. Korea Times file
By Yi Whan-woo
Tensions between labor and management at Korea Development Bank (KDB) are escalating as the state-run lender is finalizing its plan to move its headquarters from Seoul to Busan.
The plan has been long opposed by the unionized workers after it was brought up by President Yoon Suk Yeol last year as part of his balanced regional development policy.
On Monday, the labor union plans to hold a press conference, which sources familiar with the matter say is aimed at protesting the management's decision to move the bank's whole operations to the port city of Busan.
The decision came after management, through a feasibility study, deliberated over whether it would be optimal to relocate the entire operation or just partially to the country's southeastern city.
The decision was mentioned in a report submitted to the Financial Services Commission (FSC).
Under the plan, the minimum workforce, estimated to be 100, out of more than 3,000 employees, will remain at the KDB's current headquarters in Yeouido, Seoul.
On Sunday, the KDB separately released a press release that addresses its commitment to the development of southeast Korea, namely Busan, Ulsan and South Gyeongsang Province. It listed support for fisheries, startups and renewables in the region.
“Under the circumstances, the workers' side is expected to refute management's plan by citing its own study,” a source said.
It noted that workers had a financial think tank estimate the possible gains and losses if the KDB is relocated.
The findings concluded that 7 trillion won in losses will occur within 10 years once full operation of the day bank is moved to Busan.
Citing a Bank of Korea (BOK) study on regional development, the workers also concluded that it will disrupt economic added value worth 15 trillion won.
Sources said the plan has already affected the KDB's competence, referring to the departure of nearly 100 workers, including 44 this year, after the plan was addressed.