South Korea's Government Seeks to Resolve KorAm Bank Labor Dispute by Mid-July

Strategic Insights -

South Korea's Financial Supervisory Commission Chairman Lee Jung-jai has announced the government's intention to resolve the prolonged strike at KorAm Bank, owned by Citigroup Inc., by mid-July. The labor dispute, which has seen over 2,500 union workers on strike since June 25, has crippled operations at most of KorAm's 225 branches. The government has offered support to KorAm's union, warning that emergency measures will be taken if the dispute drags on.

Key Takeaways:

  • The KorAm Bank labor dispute has been ongoing since June 25, with over 2,500 union workers on strike.
  • The Korea Financial Industry Union (KFIU), with a membership of around 85,000 banking workers, has threatened to launch a general strike in support of the KorAm union.
  • KFIU members are scheduled to vote on the strike proposal next Tuesday and expected to walk off the job from July 15.
  • The government has offered support to KorAm's union, warning that emergency measures will be taken if the dispute drags on.
  • KorAm's union has been protesting at a labor training center on the outskirts of Seoul since moving from the bank's headquarters in central Seoul.
  • Citigroup has been pushing to merge KorAm into its banking operations in South Korea, causing concerns over layoffs among workers.
  • The top financial regulator has announced that the government will try to solve the labor dispute before July 15, when other bank unions are expected to start a sympathy walkout.

Statistics:

  • Over 2,500 KorAm's union workers have been on strike since June 25.
  • KorAm Bank has 225 branches, with operations crippled by the labor dispute.
  • The Korea Financial Industry Union (KFIU) has a membership of around 85,000 banking workers.
  • The KFIU members are scheduled to vote on the strike proposal next Tuesday, with a potential general strike expected from July 15.

Sources:

  • Yonhap
  • "Asia Pulse"