IBK Union protest against wage discrimination

The Industrial Bank of Korea (IBK) union has extended its outdoor tent protest beyond 120 days, fighting to guarantee workers’ rights under ILO Convention No. 98 on freedom of association and collective bargaining.

The Korea Finance Industry Union (KFIU), a UNI Global Union affiliate representing IBK workers, is demanding the government change its wage-capping guidelines to comply with international labour standards. KFIU has defined the struggle as a fight against both discriminatory wages and unpaid wages affecting thousands of bank employees.

Despite generating substantial profits, IBK employees earn approximately 30% less than other commercial bank counterparts while working overtime without proper compensation.

IBK operates in a hybrid position as both a state-run bank supporting small and medium enterprises and a listed company on the stock market. While enjoying management flexibility to respond to market conditions, its employees face rigid salary systems that fail to align with commercial banking standards.

Tensions escalated when IBK and the Ministry of Finance and Economy distributed 500 billion won (approximately US$370 million) in dividends to the government and shareholders on 26 March 2025, while ignoring union demands.

Workers at IBK effectively lack meaningful collective bargaining rights due to government-imposed spending caps on labour costs. In 2023, KFIU filed a complaint with the ILO Committee on Freedom of Association, alleging violations of core labour standards by the Korean government.

After failed negotiations in December 2024, 7,000 IBK union members went on general strike on 27 December.

“This strike is to eliminate discriminatory wages and unpaid wages,” said Brother Kim Hyoung-Sun, KFIU president & IBK Union president at the time of the strike.

Key union demands include:

• Payment of special performance bonuses through profit-sharing
• Cash payment for overtime work
• Increased employee stock shares

KFIU is now building solidarity with other unions to press for changes to Public Corporations Management Guidelines. Brother Ryu Jang-Hee, current IBK union president, continues to lead the protest outside IBK headquarters in Seoul.

UNI Asia & Pacific Regional Secretary Rajendra Acharya expressed solidarity: “We stand with the KFIU-IBK union against a discriminatory wage system that undervalues banking professionals. We urge the Korean government to ensure compliance with ILO Conventions No. 87 and No. 98, guaranteeing freedom of association and collective bargaining rights.”