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Government Warns Striking Bank Employees of Harsh Treatment Amid Ongoing Merger Protest

Strategic Insights

— 1 min read

South Korean bank employees of Kookmin Bank and Housing & Commercial Bank (H&CB) were given an ultimatum by the government to return to work by Tuesday, failing which they would be replaced by unorganized employees. The strike, which entered its fifth day on Monday, was sparked by the merger between the two banks and had resulted in the closure of 88 bank branches nationwide, causing inconvenience to customers. The government has warned of taking harsh measures, including employing riot police, to break up the sit-in if necessary.

Key Takeaways:

  • The government has threatened to replace striking employees with unorganized workers, consisting of 223 Financial Supervisory Service employees and 252 non-union employees of National Agricultural Cooperatives Federation and the Industrial Bank of Korea, if they do not return to work by Tuesday.
  • The strike, led by unions of the two banks, is protesting the merger between Kookmin Bank and H&CB, with employees demanding better working conditions and compensation.
  • A high-level government meeting was held on Monday to discuss measures to resolve the crisis, including the possible deployment of riot police to break up the sit-in.
  • The government has stated that clashes between striking employees and police are undesirable, but it will not rule out using force if customers continue to suffer inconvenience due to the bank closures.
  • The strike has resulted in the closure of 88 bank branches, affecting customers nationwide.
  • The merger between Kookmin Bank and H&CB was finalized in a previous agreement, but employees have been opposed to the deal, citing concerns over job security and working conditions.

Statistics:

  • 88 bank branches are affected by the strike, with 29 of them belonging to Kookmin Bank and 59 belonging to H&CB.
  • 223 Financial Supervisory Service employees and 252 non-union employees of National Agricultural Cooperatives Federation and the Industrial Bank of Korea would be deployed to replace striking employees.
  • The strike entered its fifth day on Monday, with no end in sight to the dispute.
  • A high-level government meeting was held on Monday to discuss measures to resolve the crisis.

Sources:

  • Dec 26 Asia Pulse
  • Government statement issued at the close of the high-level meeting (date not specified)

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