Finance workers in S. Korea launch strike for shorter workweek, higher pay

Seoul, Sep 26
Unionised workers in the financial industry staged a one-day strike on Friday to demand the introduction of a shorter workweek and higher wages, but actual participation was minimal and banking operations remained largely unaffected, officials said.

Members of the Korea Financial Industry Union (KFIU) launched a walkout as previously announced, calling for a 3.9 percent wage hike and the introduction of a 4 1/2-day workweek, reports Yonhap news agency.

The strike is intended as a "warning," with further action depending on the progress of future talks, the union said.

In industrywide negotiations, however, management proposed a 2.4 percent wage increase and maintained a lukewarm stance on the shorter workweek demand.

The KFIU had initially expected about 80,000 of its 100,000 members to participate in the collective action, but far fewer actually joined.

"The demand does not appear to have gained strong support, not only from the public but even among unionized members," a bank official said. "Almost all branches are operating normally without disruptions."

Employees in the banking sector are known to earn relatively high wages compared with those in other industries. The average annual salary per worker at the five major banks reached nearly 120 million won (US$85,088) last year.

meanwhile, foreign currency deposits in South Korea surged to their highest level in over 2 1/2 years last month, driven by corporate deposits, central bank data showed on Friday.

Outstanding foreign currency-denominated deposits held by residents had stood at US$107.64 billion as of end-August, up $2.49 billion from a month earlier, according to the data from the Bank of Korea (BOK).

It marked the highest level since January 2023, when foreign currency deposits stood at $109.25 billion.

Residents include South Korean citizens, foreigners who have resided in the country for more than six months and foreign companies. The data excludes interbank foreign currency deposits.