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Key Points

Unionized finance workers in South Korea went on a one-day strike to push for their demands. They are asking for a shorter workweek and a pay raise of nearly four percent. However, the action had minimal impact as most bank branches operated normally. The union has called this a warning, suggesting more action could follow if talks stall.

Key Points: South Korea Finance Workers Strike for Shorter Week Higher Pay

  • Union staged a one-day warning strike for a 4.5-day workweek and higher wages
  • Actual participation was minimal with banking operations unaffected
  • Management offered a lower 2.4% wage increase in negotiations
  • Finance workers already earn high average salaries of nearly $85,000
2 min read

Finance workers in S. Korea launch strike for shorter workweek, higher pay

Korea Financial Industry Union stages one-day warning strike demanding a 4.5-day workweek and 3.9% wage hike, but bank operations remain largely unaffected.

"The demand does not appear to have gained strong support... Almost all branches are operating normally without disruptions. - Bank Official"

Seoul, Sep 26

Unionised workers in the financial industry staged a one-day strike on Friday to demand the introduction of a shorter workweek and higher wages, but actual participation was minimal and banking operations remained largely unaffected, officials said.

Members of the Korea Financial Industry Union (KFIU) launched a walkout as previously announced, calling for a 3.9 percent wage hike and the introduction of a 4 1/2-day workweek, reports Yonhap news agency.

The strike is intended as a "warning," with further action depending on the progress of future talks, the union said.

In industrywide negotiations, however, management proposed a 2.4 percent wage increase and maintained a lukewarm stance on the shorter workweek demand.

The KFIU had initially expected about 80,000 of its 100,000 members to participate in the collective action, but far fewer actually joined.

"The demand does not appear to have gained strong support, not only from the public but even among unionized members," a bank official said. "Almost all branches are operating normally without disruptions."

Employees in the banking sector are known to earn relatively high wages compared with those in other industries. The average annual salary per worker at the five major banks reached nearly 120 million won (US$85,088) last year.

meanwhile, foreign currency deposits in South Korea surged to their highest level in over 2 1/2 years last month, driven by corporate deposits, central bank data showed on Friday.

Outstanding foreign currency-denominated deposits held by residents had stood at US$107.64 billion as of end-August, up $2.49 billion from a month earlier, according to the data from the Bank of Korea (BOK).

It marked the highest level since January 2023, when foreign currency deposits stood at $109.25 billion.

Residents include South Korean citizens, foreigners who have resided in the country for more than six months and foreign companies. The data excludes interbank foreign currency deposits.

—IANS

- IANS

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Reader Comments

R
Rohit P
The low participation shows that even well-paid workers hesitate to strike. In India, we see similar patterns - people worry about job security despite genuine demands.
A
Aditya G
A 4.5-day workweek sounds like a dream! But with India's competitive banking sector, I doubt we'll see this anytime soon. Maybe WFH options are more realistic for now.
S
Sarah B
While I support workers' rights, demanding higher pay when already earning $85k annually might not get public sympathy. The foreign currency deposits growth shows the sector's importance to their economy.
K
Karthik V
South Korea's work culture is intense, so the shorter workweek demand makes sense. Hope this inspires positive changes in work-life balance globally. 🙏
M
Michael C
The article mentions banking operations weren't affected - that's crucial. Strikes should make a point without harming ordinary customers who depend on these services.

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