S. Korean Bank Workers to Vote on Strike

South Korean bank workers will vote today whether to go on strike to protest government-orchestrated mergers and other financial restructuring that could result in widespread job losses. Members of the Federation of Korean Trade Unions, the nation’s biggest umbrella union group, would walk out July 11 if the vote succeeds. The decision affects 73,000 bank workers. Labor opposition could undermine the political resolve of Korean lawmakers in the government’s efforts to prop up the debt-laden banking industry through mergers and acquisitions. While the government has since spent $80 billion trying to fix problems in the financial industry, many Korean lenders are still struggling with surging bad assets, amid stricter banking regulations and unstable stock and bond markets. The chairman of the Financial Supervisory Commission is scheduled to convene an emergency meeting with the heads of commercial lenders today. The strike threat comes as Korea is set to open an extraordinary session of the National Assembly to pass laws for establishing financial holding companies, which would allow banks to expand their operations into securities and investment banking.