Eximbank president faces fierce union opposition
The union of the state-run Export-Import Bank of Korea (Eximbank) has upped the ante against the government’s appointment of the bank’s new chief executive Eun Sung-soo.
Its workers are staging a protest, noting that when Eun was the chief executive of Korea Investment Corp., he fully backed the former Park Geun-hye administration’s plan to adopt a system enabling banks to pay their employees based on their annual performance.
Workers of Eximbank, Korea Development Bank and Industrial Bank of Korea then fought against this merit-based pay system through court injunctions.
The former government sought to replace the old structure that incrementally increases annual salaries as part of financial reform. Former Financial Services Commission (FSC) Chairman Yim Jong-yong even gave state-run financial companies an ultimatum, saying that if they do not adopt the system, they will suffer consequences such as budget cuts.
The workers claimed it was an excuse for banks to easily lay off people whenever they wanted.
The Eximbank union called Eun a “parachute appointee,” securing the job through his close ties with the administration. Eun previously worked with former President Roh Moo-hyun, and is connected to Fair Trade Commission Chairman Kim Sang-jo.
Eximbank workers have been blocking Eun from going to his office and holding his inauguration ceremony.
“We will ensure Eximbank will not make the same mistake of letting so-called parachuted executives misuse the bank for their own benefit,” said a union official.
In addition to its opposition to Eun as the new CEO, Eximbank is facing a number of urgent issues.
A recent scandal, including an accounting fraud allegation, at Korea Aerospace Industries (KAI), is expected to negatively affect Eximbank’s finances.
KDB handed over its 26 percent stake in KAI to the Eximbank last June to boost the capital base of the state-run bank.
But this proved to be unhelpful and useless amid the corruption scandal involving the defense contractor’s Surion utility helicopter.
The state-run bank is also beset by Sungdong Shipbuilding & Marine Engineering, which will need to undergo debt restructuring amid an industry slowdown.
Eximbank has a 67 percent stake in the shipbuilder. Woori Bank and NongHyup Bank also have signifi- cant shares in Sungdong.
The finance ministry named Eun the Eximbank CEO on the same day the FSC appointed Lee Dong-gull as the KDB CEO.
The finance ministry said Eun is “the right person” to head the bank, noting his international experience.
While Eun has not been welcomed by the workers, Lee officially started his job on Monday without any resistance from the KDB union.
Lee met with the union prior to his inauguration in a move to ease the tension before the KDB chief sets up his new management team.
Lee promised he will collaborate and communicate with the union on various matters.