Investment finance center established in Honam, southern region headquarters to oversee
Labor Union Criticizes “Trick to Move Headquarters to Avoid Legal Action”
KDB Industrial Bank is entering into a reorganization process that will establish a ‘Southern Headquarters’ in the Busan area. The labor union is expressing its opposition to this reorganization plan, calling it a ‘trick’ to circumvent the law and achieve the effect of relocating the actual headquarters, and the conflict is intensifying.
According to the financial sector on the 20th, the Industrial Bank of Korea will hold a board meeting on the 26th and decide on the ’25-year reorganization plan’. It is known that the gist of this reorganization plan is to establish a ‘Southern Investment Finance Headquarters’ in the Busan area.
The Industrial Bank of Korea previously established the Southeast Investment Finance Center in Busan last year. This reorganization plan will include plans to establish additional regional investment finance centers in the Honam region and establish a system in which the Southern Headquarters will oversee these centers. In addition, a new organization called the ‘Regional Enterprise Support Center’ will be established under the Southern Headquarters.
The Industrial Bank of Korea claims that the reorganization is intended to promote regional growth and expand regional sales, but the labor union criticizes it as a “trick” to achieve the actual effect of relocating the headquarters.
The government is pushing for the relocation of the Industrial Bank of Korea headquarters to Busan, but the Industrial Bank Act needs to be revised. However, since the revision of the law seems difficult due to the minority government’s majority, there is criticism that the company is expanding its base in the Busan area. The union claims that the company will send a large number of employees to the Busan area, effectively making it the headquarters.
In fact, Kang Seok-hoon, chairman of the Industrial Bank of Korea, had stated at a press conference in June that he would implement the Southern Region headquarters even before the revision of the Industrial Bank Act so that it could have a practical effect. At the time, Chairman Kang stated, “Once the board of directors approves the reorganization, personnel transfers for the establishment of the Southern Region Investment Finance Headquarters will take place in the second half of the year.”
The Industrial Bank of Korea’s labor union called this reorganization plan the “second Busan relocation reorganization” following the establishment of the Southeast Investment Finance Center last year and called for its suspension.
Kim Hyeon-jun, chairman of the Industrial Bank branch of the National Financial Industry Union, said, “San-eun already went through a reorganization in Busan in January of last year, but it is not clear what effect it had.” He added, “It is questionable whether reorganizing the organization again will be effective, considering that it currently has the most stores and employees in Busan, Ulsan, and Gyeongnam.”
Regarding the reorganization plan, an official from the Industrial Bank of Korea said, “It is difficult to confirm matters related to the board of directors.”
Meanwhile, the Industrial Bank of Korea union began a tent protest in front of the Industrial Bank of Korea headquarters in Yeouido, Seoul on the 19th, demanding the withdrawal of this reorganization plan.
(Seoul = News 1)
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2024-09-20 13:35:04