 Members of civic groups, including the Korea Finance Consumer Federation, protest against corporate greed and political corruption in front of the Financial Services Commission (FSC) building in Yeouido, Seoul, last week / Yonhap |
By Kim Jae-won
Financial firms are maintaining an uneasy calm over the anti-Wall Street protests that recently reached Korean shores, judging by the reaction from numerous industry people interviewed by The Korea Times.
When not shoved in front of cameras or notepads, company executives will express frustration over taking a public-relations beating for simply doing their job, which is to be profitable. However, they also understand that these are extremely awkward times for bankers and stock managers to ask for sympathy.
Hundreds of protesters took to the streets of Seoul, including the financial district of Yeouido, over the weekend to voice their anger over corporate greed and political corruption, which they claim have resulted in a widening income gap and weaker social mobility.
But one high-ranking bank official claims he and his colleagues have nothing to be ashamed of.
``There is no-nonsense in our business. We have made profits within the legal boundaries that are permitted to us,’’ he said.
``A bank is a private company that has to put shareholders’ interest as its top priority. This is the same with a manufacturing firm, but why should we be the only ones that are targeted (by the protests)?’’
He blasted the government for its lack of efforts to step up and defend financial firms against the radical arguments presented by protesters, who describe themselves as representing ``99 percent of the people.’’
Earlier this week, Financial Services Commission Chairman Kim Seok-dong slammed financial companies for their greed and lack of morality. He suggested that they should care more about public good rather than just focusing on maximizing profits.
A director of the local unit of a foreign financial company said she could empathize with the claims of the protesters.
“It is problematic that a company bailed out by taxpayers’ money pays high salaries to its executives and big dividends to investors. We need to listen to them,” she said on condition of anonymity.
A director of a state-run bank based in Yeouido said that the small island in the Han River became a target because working in the region, home of brokerages, banks, and the stock exchange office, represents having a well-paid job and being high-class.
“To work in Yeouido means that you are the selected one percent. I understand young jobseekers’ anger against us,” the bank director said.
Another officer of the government-controlled bank said that generation divide lies behind the demonstrations.
“Young jobseekers may think that it is unfair that the older generation take good social positions, while they suffer from not having quality jobs.”
Criticism has been rising over moves by banks and other financial institutions to pay massive dividends. According to financial analysts, local banks are expected to post a record 20 trillion won ($17 billion) net profit this year on the back of increased interest income.
“Today, we chant for justice in finance. The financiers who disobey the law should go to jail. Anyone that takes excessive profits from unjust monetary gain should pay extra tax,” said Spec Watch, an activist group which organized the protest in a statement. The demonstrators demanded compensation for victims who lost money due to banks’ risky business operations.
The group said it also plans to urge the government to strengthen regulations on financial institutions, create more jobs, curb rampant housing prices and cut expensive college tuition.
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