Korea Development Bank Labor and Management Clash Over Appointment of Executives Who Promoted Busan Relocation

First Regular Executive Reshuffle Under Chairman Park Sangjin
Union Protests Over Promotion of Senior Officials Involved in 'Busan Relocation'
Debate Continues Over Implementation of One-Hour Early Leave on Fridays

The labor and management of Korea Development Bank are in conflict over the appointment of executives who were involved in promoting the relocation of the headquarters to Busan during the Yoon Suk-yeol administration. In protest, the Korea Development Bank Labor Union has begun a tent sit-in, and the union head has also started a hunger strike.

According to the financial sector on December 23, the Korea Development Bank Labor Union, under the National Financial Industry Labor Union, has been holding a tent sit-in at the Korea Development Bank headquarters in Yeouido, Seoul, since the afternoon of December 17. Furthermore, Kim Hyunjun, the union head, began an indefinite hunger strike in the afternoon of December 22. The union's demands include: canceling the executive appointments, immediate implementation of the one-hour early leave on Fridays, and expansion of staff-friendly policies such as flexible work arrangements. On December 16, Korea Development Bank Chairman Park Sangjin reportedly announced during a meeting with the union that he would appoint executives who had promoted the Busan relocation and also rejected the introduction of the early leave system. In response, Kim stated, "If the voices of the employees are ignored again, there could be a second and third Busan relocation crisis," and began the tent sit-in.

The Korea Development Bank Branch of the National Financial Industry Labor Union announced that it has begun an "indefinite hunger strike" starting from the afternoon of the 22nd in the lobby of the Korea Development Bank headquarters in Yeouido, Seoul. Korea Development Bank Labor Union

The biggest point of contention is the executive appointments. Korea Development Bank plans to conduct appointments for vice presidents within the year. This will be the first regular executive reshuffle since Chairman Park Sangjin took office. Individuals associated with former Chairman Kang Seokhoon, who promoted the headquarters relocation to Busan, or who were involved in preparing for it, are reportedly being considered for promotion to vice president and other key positions. These candidates are said to have ranked at the bottom in a management evaluation and suitability survey for the next vice president, in which 1,757 union members participated. The management maintains that personnel appointments are the exclusive authority of the chairman and are not subject to labor-management agreement.

The introduction of a one-hour early leave on Fridays is also a major issue. In October, the Financial Industry Employers' Association and the Financial Labor Union discussed the implementation of the one-hour early leave on Fridays as one of the main agreements at the Central Labor-Management Committee. According to a separate agreement signed at the time, "The financial labor and management may implement a one-hour early leave on Fridays, autonomously determined by each institution, to prepare for the introduction of a 4.5-day workweek." Issues agreed upon by the financial labor and management are submitted as agenda items by the industry-wide union. While management interprets the implementation as being at the discretion of each institution, the union insists that the early leave system is a mandatory provision that must be implemented, with only the specific methods determined autonomously by each institution. A union representative stated, "Since the leave time would be moved from 6 p.m. to 5 p.m., it does not reduce banking hours or inconvenience customers, nor does it run counter to the national policy goals of the Lee Jaemyung administration. If management decides, the early leave system can be introduced at any time."

Meanwhile, the one-hour early leave system is expected to be implemented first at IBK Industrial Bank of Korea. Starting in January next year, Industrial Bank of Korea will introduce the "Edge Training Program," which allows employees to leave one hour early every Wednesday and Friday and attend a one-hour job-related lecture online. Labor unions at Kookmin Bank, Shinhan Bank, and the NH Nonghyup branch are also discussing the issue as an agenda item in labor-management negotiations.