San-eun Promotes Application for Designation of Public Institutions Relocated to Provinces
Conflict between labor and management is intensifying over the relocation of Korea Development Bank (KDB) to Busan. While KDB is pushing ahead with its application to the financial authorities to be designated as a relocated public institution, the labor union has launched a blockade protest against the commute of Chairman Kang Seok-hoon, Senior Vice President Kim Bok-gyu, and other executives.
According to financial circles on the 27th, the Korea Development Bank branch of the National Financial Industry Labor Union held a 'Resolution Rally to Block the Commute of Chairman Kang Seok-hoon and All Executives and Urge the Suspension of the Unilateral Relocation' at the headquarters that morning.
The union’s move to block the executives’ commute was in response to KDB’s insistence on being designated as a relocated public institution. According to the union, KDB planned to hold a management council meeting attended by the chairman, senior vice president, and executives on the same day to process the agenda item titled 'Submission of the Bank’s Opinion on the Draft Plan for KDB’s Relocation Institution Designation (to the Financial Services Commission).'
Under the current Special Act on the Creation and Development of Innovation Cities, the head of a relocated public institution must submit a local relocation plan to the competent administrative authority (the Financial Services Commission Chairperson), who then reviews the plan and forwards it to the Minister of Land, Infrastructure and Transport. This marks the first step in the administrative procedures related to the Busan relocation.
KDB has recently accelerated its practical work related to the Busan relocation. In a report titled 'Review of the Plan for Designating KDB as a Relocated Public Institution' submitted to Kang Min-guk, a member of the National Assembly’s Political Affairs Committee from the People Power Party, KDB stated that it plans to complete related consulting by May and, from June onward, establish the relocation plan by reflecting employee feedback and consulting results.
Additionally, KDB recently appointed Kim Bok-gyu, who served as the deputy head of the Busan Relocation Preparation Team, to the position of senior vice president, the bank’s second-in-command. This signals a 'hardline' drive regarding the Busan relocation.
The union’s opposition has grown accordingly. After disrupting an internal employee briefing scheduled for mid-month at the main auditorium, the KDB union staged a blockade protest, claiming that Kim Bok-gyu, who retired in January, had unofficially performed duties at the headquarters as a civilian before his appointment, using office space.
Earlier, on the morning of the 24th, the union visited Chairman Kang to demand acceptance of a joint labor-management task force (TF) to review the feasibility of the relocation and to prohibit submission of the relocation institution designation plan without labor-management consultation, but no substantial discussions followed. Consequently, the union maintained a sit-in in front of the chairman’s office throughout the weekend.
Significant difficulties are expected regarding KDB’s Busan relocation. First, the current Korea Development Bank Act stipulates that the bank’s headquarters must be located in Seoul, making legislative amendments essential. Considering the current National Assembly’s situation with a ruling party minority, persuading the opposition party is a major hurdle. The deepening conflict with the union is also a concerning factor. The union has stated that if the proposed joint labor-management feasibility review TF is not accepted, it plans to escalate its protest.
A KDB official said, “There has been no official announcement regarding the specific agenda items for the management council,” but added, “Considering the current labor-management conflict, it is unlikely that the related agenda will be processed immediately.”
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