Financial Supervisory service Prepares for Historic Strike Over Reorganization Plan
Seoul, South Korea – Employees of the Financial Supervisory Service (FSS) are preparing for their first-ever general strike in response to the government’s planned reorganization of financial institutions, including the separation of the Financial Consumer Protection Agency adn the designation of the FSS as a public institution. Demonstrations were held at the FSS headquarters in Yeouido, Seoul on October 10th, with labor unions and employees condemning the proposed changes. [See image]
On October 11th, the FSS and its employees officially established an Emergency Response Committee – operating outside of conventional union structures - and initiated procedures for a potential strike, beginning with non-cooperation and collective action. Concerns are mounting regarding potential damage to the FSS’s independence, with discussions underway about directly communicating these concerns to the International Monetary Fund (IMF).
This marks the first time since its establishment in 1999 that the FSS is considering a strike. While there were strike threats from securities and insurance supervisors before their 1997 integration, this is unprecedented within the unified FSS system.
The move to a non-commissioned system followed a vote of no confidence in the existing FSS chairman on October 8th. This action coincided with a decision by ruling and opposition parties to cooperate on legislation related to the Financial Supervisory Commission’s establishment. Employees have already begun a symbolic protest,wearing black clothing for three consecutive days starting October 9th. Although some advocated for more drastic measures like extended leave or resignation, the union has initially opted for a strategy of compliance-based resistance.
Though, a full-scale strike is not imminent. Legal procedures, including negotiations and a dispute resolution vote, must be completed first. The government and ruling party aim to implement the reorganization by January 2nd, leaving limited time for these processes. Therefore, initial actions are expected to focus on strict adherence to regulations, such as refusing overtime, working through holidays, and adhering strictly to scheduled work hours.
A key factor will be the outcome of an upcoming interview with FSS Director Lee Chan-jin. The union intends to directly express opposition to the transfer of the Financial Services Commission and the proposed reforms to core functions like the sanctions deliberation committee and the dispute coordination committee. The director’s response will likely dictate the intensity of future actions.
Plans to raise concerns with the IMF were disrupted when the IMF Annual Council meeting was switched to a virtual format, preventing a direct in-person discussion. The FSS union intends to escalate its actions in the coming days, including one-person protests and expanded demonstrations next week.
(Source: Yonhap News)
(Image Caption: Labor unions and employees of the Financial Supervisory Service are designating the FSS as a public institution in the lobby of Yeouido FSS in Yeongdeungpo-gu, Seoul on the 10th, and condemning the government’s reorganization plan to separate the Financial Consumer Protection Agency.)
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