▲ Unions of Three Major Policy Banks to Jointly Respond to Second Round of Government Relocation Plan

The unions of three major policy banks—Korea Industrial Bank, IBK Corporate Bank, and Korea Export-Import Bank—have decided to jointly respond to the government's push to relocate public institutions to provincial areas. The unions plan to hold a joint rally on the 11th of next month near the headquarters of Industrial Bank in Yeongdeungpo-gu, Seoul, to oppose the relocation.

The rally is viewed as a preemptive response to expectations that policy banks could be included in the second round of public institution relocation plans expected to be announced around September. Busan and Daegu are being discussed as potential relocation destinations.

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▲ Concerns over Weakened Policy Finance Synergy and Operational Efficiency

The core reason unions oppose relocation is their assessment that the policy finance functions and operational efficiency of policy banks could deteriorate. The argument is that if institutions responsible for industrial, export, and small business financing become separated from the capital region's financial market and government agencies, the promptness and connectivity of policy finance operations could be weakened.

Unions are particularly concerned that relocation of policy banks could extend beyond a simple change of headquarters location to affect the entire policy finance ecosystem. The argument is that given the nature of policy banks requiring close cooperation between government, financial markets, and businesses, physical distance could burden operational efficiency.

▲ Concerns over Workforce Exodus...Industrial Bank Case Becomes Key Variable

Workforce outflow is another major reason unions cite for opposing relocation. Given that employee departures materialized during the past push to relocate Industrial Bank to Busan, concerns are growing that if relocation is confirmed, it could lead to further loss of core personnel and weakened organizational competitiveness.

Industrial Bank's relocation to Busan was pursued as a state policy task even under the Yoon Suk-yeol administration but ultimately fell through. At that time, the union strongly opposed and fought to block it, and the relocation discussion itself became a factor triggering workforce departures and internal organizational conflict.

▲ 1,500~2,000 Workers Expected...Strike Action After Business Hours

To minimize disruption to operations, the union has set the rally time for 7 p.m. The rally, to be held on a major street near Industrial Bank headquarters, is expected to draw approximately 1,500~2,000 participants, mainly from headquarters staff.

Holding a large-scale rally after business hours is interpreted as a strategy to minimize disruption to financial services to customers and businesses while clearly conveying opposition to relocation. The fact that unions from three policy banks are taking joint action suggests the level of pressure on the government will be higher than before.

▲ Possibility of Strike Raised...Focus on Expanding Labor-Government Conflict

The union has not currently decided on a strike but has left open the possibility of resorting to labor disputes depending on how the government pursues relocation. By stating that a strike could be considered if the situation worsens, the possibility of relocation becoming more than simple labor-management conflict and expanding into labor-government confrontation has also been raised.

However, no specific schedule for strikes or other disputes has been set at present, and the plan is to decide the level of response after observing the government's policy direction and future discussions.

Ultimately, this joint rally can be seen as the first pressure card by policy bank unions to clearly demonstrate their collective opposition before the second round of public institution relocation plans is formalized. If the government pursues relocation of policy banks, the policy goal of regional balance development through policy finance functions is expected to directly collide with the practical issues of financial institutions' operational efficiency and workforce procurement.