The Financial Services Commission is reviewing a plan to grant an exception to the total personnel cost system for IBK Industrial Bank of Korea, contingent on the bank implementing self-rescue measures including reduction of overtime work, regarding the issue of unpaid overtime wages.
According to financial industry sources on the 9th, the FSC has been accelerating discussions with IBK to resolve the unpaid overtime issue following the inauguration of President Chang Min-young last month. At the FSC's year-end business report last year, President Lee Jae-myung ordered a resolution, stating "The labor union is in an uproar saying IBK is withholding wages" and "There is an aspect where the government has forced (the bank) to operate in violation of the law (due to the total personnel cost system)." However, discussions stalled as the appointment of a new president was delayed.
The FSC's position is that it can review an exception to the total personnel cost system on the condition that the bank implements self-rescue measures to curb overtime pay. The commission argues that to prevent recurrence of situations requiring payment of tens of billions of won in overtime wages, the bank must streamline its work systems within the current personnel and organizational framework. Officials explain that if an exception is granted, resistance is expected from other public institutions that comply with budget limits, so IBK must undertake corresponding structural improvement efforts. A financial authority official said, "Approval of an exception to the total personnel cost system is not a common case," adding, "We cannot ignore considerations of equity with other public institutions."
Regarding payment methods, the FSC is leaning toward long-term installment payments rather than lump-sum payment. This appears to reflect the judgment that cash outflows should be managed without placing excessive burden on the bank's capital soundness, given that unpaid wages amount to tens of billions of won.
However, there are significant issues to resolve before reaching a compromise. First, the FSC and IBK's labor union disagree on the scale of unpaid allowances. While the currently unpaid amount is known to be approximately 78 billion won, the union reportedly maintains that this figure does not sufficiently reflect the intent of the Supreme Court's ruling on ordinary wages last year. Additionally, regarding the "long-term installment payment plan" under review by financial authorities, the union has stated that acceptance is impossible, saying "This is essentially proposing to further delay the wage arrears situation."