Why Are Finance Workers in S. Korea Striking for a Shorter Workweek and Higher Pay?
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Synopsis
In South Korea, unionized finance workers held a one-day strike demanding a shorter workweek and higher wages. Despite low turnout, the strike signals potential future actions depending on negotiations. This article explores the implications of their demands amidst a backdrop of rising foreign currency deposits.
Key Takeaways
- Low participation in the strike indicates potential lack of support among workers.
- The union is seeking a 3.9 percent wage increase and a 4.5-day workweek.
- Management's counteroffer is a 2.4 percent wage hike.
- Average salaries in banking are notably higher than in other sectors.
- Foreign currency deposits are at their highest since January 2023.
Seoul, Sep 26 (NationPress) Unionized workers in the financial sector organized a one-day walkout on Friday, advocating for a shorter workweek and increased salaries. However, participation was low, and banking activities were largely uninterrupted, according to officials. Members of the Korea Financial Industry Union (KFIU) initiated this strike as previously announced, seeking a 3.9 percent salary increase and the implementation of a 4.5-day workweek, as reported by the Yonhap news agency.
The strike serves as a “warning,” with future actions contingent on the outcomes of ongoing negotiations, the union stated.
In related discussions, however, management countered with a proposal of a 2.4 percent wage hike and expressed indifference towards the shorter workweek request.
The KFIU had anticipated participation from around 80,000 of its 100,000 members, but significantly fewer took part.
“The demand does not seem to have garnered strong backing, both from the public and even among union members,” remarked a bank official. “Almost all branches are functioning normally without any disruptions.”
Employees in the banking industry typically receive comparatively high salaries versus other sectors. Last year, the average annual compensation for employees at the five major banks reached nearly 120 million won (approximately US$85,088).
Meanwhile, data released on Friday revealed that foreign currency deposits in South Korea spiked to their highest in more than 2.5 years, largely attributed to corporate deposits, according to central bank statistics.
Outstanding foreign currency deposits held by residents amounted to US$107.64 billion at the end of August, marking a rise of $2.49 billion from the previous month, as per the Bank of Korea (BOK).
This figure represents the highest level since January 2023, when foreign currency deposits reached $109.25 billion.
Residents include South Korean citizens, foreigners living in the country for over six months, and foreign enterprises. The data does not include interbank foreign currency deposits.
Point of View
It is essential to recognize the balance between worker demands and economic realities. While the call for a shorter workweek and higher wages resonates with the workforce, it must be weighed against industry sustainability and the broader economic context. The situation warrants careful observation as negotiations unfold, and the impact on both employees and the financial sector is evaluated.
NationPress
26/09/2025
Frequently Asked Questions
What were the demands of the striking workers?
The striking workers demanded a 3.9 percent wage increase and the implementation of a 4.5-day workweek.
How many workers participated in the strike?
The Korea Financial Industry Union had expected around 80,000 members to participate, but actual turnout was significantly lower.
What was management's response to the demands?
Management proposed a 2.4 percent wage increase and showed a lukewarm response towards the request for a shorter workweek.
What recent financial data was released?
Data revealed that foreign currency deposits in South Korea surged to US$107.64 billion, the highest level in over 2.5 years.
Who is included in the category of 'residents' for the deposit data?
Residents include South Korean citizens, foreigners residing in the country for more than six months, and foreign companies, excluding interbank deposits.
