IBK workers uneasy over politicians' push to relocate bank to Daegu
Industrial Bank of Korea (IBK) headquarters in Seoul / Courtesy of IBK
A renewed push by politicians to relocate the headquarters of the state-run Industrial Bank of Korea (IBK) to the southeastern city of Daegu is raising concerns among bank employees, labor union officials said Thursday.
The proposal has gained traction across party lines ahead of the June 3 local elections, as candidates in Daegu seek to appeal to voters with pledges to bring the bank's headquarters to the city.
IBK, a major lender to small and medium-sized enterprises (SMEs), is currently headquartered in Seoul's Jung District and plays a key role in implementing government-backed financing programs.
Kim Boo-kyum, a former prime minister and Daegu mayoral candidate from the ruling Democratic Party of Korea, has floated the relocation as a key campaign pledge.
In a recent media interview, Kim said, "There are about 3,000 SMEs in Daegu. Since IBK was launched to support these businesses, it makes sense for it to be headquartered here."
Similar calls have long been made by members of the main opposition People Power Party (PPP), which has traditionally enjoyed strong support in the city.
Rep. Yoon Jae-ok of the PPP proposed a revision to the IBK-related law in 2024 that would relocate the bank's headquarters to Daegu, arguing the move would help revitalize regional economies and contribute to balanced development across regions.
Unionized workers at IBK, however, have pushed back strongly.
They warn that relocating a major policy bank out of the capital could disrupt operations and weaken its competitiveness.
"We view a top-down relocation decision as undermining the very nature of policy finance and as an anti-market measure that threatens the foundation of the national economy and infringes on workers' rights," an official from IBK's labor union said.
The official also noted that no concrete discussions on relocation have taken place with management or authorities, but added that the union is closely monitoring developments.
The Korean Financial Industry Union, which represents workers at both private and state-run banks, has launched an internal task force to respond to the government’s relocation push targeting policy banks, warning that similar proposals could spill over to other institutions.
Proposals to move state-run banks outside the capital tend to resurface during every election cycle, but actual implementation has proven difficult.
The former Yoon Suk Yeol government had pushed for the Korea Development Bank's (KDB) relocation to Busan as a key campaign pledge tied to its balanced regional development initiative.
However, the plan lost momentum as a required revision to the relevant law — which currently mandates that the bank's headquarters remain in Seoul — failed to pass the 21st National Assembly.
At the time, labor unions at KDB strongly opposed the move, warning that the relocation could trigger a significant brain drain and weaken the bank's competitiveness.