[THE INVESTOR] South Korea’s chief financial regulator called on the nation’s umbrella bank union on Sept. 21 to withdraw its plan to go on a general strike later this week, citing the “life-or-death” crisis faced by the local banking industry.

Financial Services Commission Chairman Yim Jong-yong delivered the message in a meeting with the heads of seven major local banks to discuss ways to deal with the move by the Korean Financial Industry Union. The session was also joined by Zhin Woong-seob, governor of the Financial Supervisory Service.

The union plans to stage a general strike on Sept. 23 at Sangam World Cup Stadium in western Seoul in protest against the government-driven introduction of a full-fledged performance-linked pay system.

The union, which claims more than 100,000 members nationwide, said most of them are expected to take part in the walkout, adding additional collective actions are being considered.

The FSC chief said I’‘s deplorable that the unionized bank workers have opted for the “extreme means” when there is “even a talk of the possibility of the domestic banking sector collapsing.”

He cited the worsening profitability due to low growth and interest rates, coupled with growing burdens for non-performing loans amid corporate restructuring, as well as fierce competition with fintech firms.

(theinvestor@heraldcorp.com)