A view of the Financial Supervisory Service in Yeouido, Seoul. Yonhap News
More than eight in 10 employees of South Korea’s Financial Supervisory Service (FSS) said they would consider quitting if the agency were relocated outside Seoul, according to a union survey. Among junior staff under 40 and professionals such as certified public accountants and lawyers, more than 90% signaled an intention to leave.
The FSS labor union surveyed 1,538 employees through its internal network from the 18th to the 21st, the financial industry said on the 21st. A total of 69.7% said they intended to quit, and including those who answered “neutral,” 85.6% of all staff said they would consider leaving. Fewer than 15% said they had no intention of quitting.
Younger employees showed a stronger inclination to leave. Among staff under 40, 82.5% said they intended to quit, rising to 92.5% when those who answered “neutral” were included. Employees under 40 are typically below team-leader rank and handle day-to-day work. There are concerns that this could create a significant gap among the frontline staff who form the backbone of the supervision and inspection of financial companies.
Professionals, who can move to other jobs more easily, showed an even higher intention to leave. Among employees holding accounting licenses, 78.9% said they intended to quit, rising to 90.6% including those who answered “neutral.” Among lawyers, 94.2% said their intention to leave was “neutral or higher.” In addition, 99% of FSS employees said Seoul was the appropriate location for the agency.
Of the FSS’s current headcount of 2,190, accountants and lawyers number 770. Including actuaries, tax accountants and doctoral degree holders, the number of professional staff rises to 1,050. With the widening pay gap between private financial firms and the FSS accelerating an outflow of talent over the past five years, many fear that relocation could trigger an exodus of professional staff. When debate over moving the agency’s headquarters to Busan peaked in 2022 and 2023, voluntary departures from the Korea Development Bank numbered 97 and 87, respectively — more than double the 46 recorded in 2021. A FSS union official said, “The loss of expertise in financial supervision will directly lead to the loss of consumer protection functions.”
Unions at the three major state-run banks — the Korea Development Bank, the Industrial Bank of Korea (IBK) and the Export-Import Bank of Korea — are also stepping up their response to block the relocation. After holding a joint rally in front of the National Assembly in Yeouido on the 11th, they decided on this day to soon stage relay protests in front of the presidential office. They condemned relocation talks being conducted while excluding more than 15,000 workers, and said they would convey to the government the need to remain in Seoul.
The Korean Financial Industry Union, to which the three state banks belong, plans to hold a general strike rally in Yeouido on the 28th and launch a general strike on the 4th of next month if the government pushes ahead with the relocation. A union official at one of the state banks said, “We are also considering a separate general strike at the level of the three major state banks.”
Financial-sector unions are ramping up pressure on the government by joining forces to build their numbers. The FSS union and the Korea Deposit Insurance Corporation union will hold a joint press conference in front of the presidential office on the 24th and issue a joint statement opposing relocation. A FSS union official said, “We plan to express our intention to block a relocation that raises concerns about the collapse of the financial safety net and the spread of harm to financial consumers,” adding, “We are also considering collective action through solidarity with the state banks.”