If and when strike begins

From the 11th when some of the banks hold strikes, the bank counters are expected to experience a considerable disorder. Customers at banks on strike will have to wait a long time before they can receive banking services.

Of course, there will disparity between banks on strike in relation to the level of normal operation. In the case of protesting banks, which have labor union members participating in the strike, business will be executed with only non-labor union members. Depending on the degree of specialty, some of the banking services will unavoidably be administered with difficultly. An assessment has been made on the differences by banking services.

¡äWithdrawal/deposit, remittance, payment of loan interest: In the case of CHB`s South Yoido branch, there are total of 29 personnel of which 23 are labor union members and the remaining 6 non-members. What would happen if all 23 labor union members do not come to work and participate in the strike?

From the 11th to the 14th each month, there are around 300~400 transactions in relation to general withdrawal/deposit and tax payment. The work used to be done by 5 staff but from the 11th, 3 contractual workers will have to bear the burden. On average transactions were completed in 5 minutes but on the 11th, transactions may take as long as 20~30 minutes.

For Hanvit Bank, 4,400 non-labor contractual workers have been secured. The bank plans to 5~9 personnel to each of its 684 branches; 1 branch manager, 1 deputy branch manager, 1~5 contractual telebanking staff, 1 subsidiary personnel. At sub-branches, there are only around 8 staff but basic banking activities such as withdrawal, deposits, remittance and loan interest payments will be executed.

However, as daily account closing will not take place on schedule, on the second day of strike there may be problems in executing basic transactions such as withdrawal and deposits.

¡äNew loans and loan extensions: For banks on strike, most loan related activities will be significantly affected.

In the case of KEB, if 3,700 labor union members of the total 6,400 personnel take part in the strike, the bank may have to dispatch 203 head office staff to 18 different regions. Hence, the total number of support staff to be received by branches will be substantially lacking.

KEB`s Choongmoo-ro branch has a total of 30 workers. Out of the 30, 19 are labor union members and in case they participate in the strike, only 1 person will be reinforced.

Considering the situation at hand, for new loan and loan extension transactions, non-labor union member deputy branch managers will have to assume the duties but still computer input duties will either be significantly delayed or impossible.

According to a staff in CHB` South Yoido branch, normally a 5 million won loan application can be processed on the same day or by the next day but during the strike period, loans will be hard to receive.

A Kookmin Bank official remarked that loan transactions may be somewhat delayed as only 1/3rd of the total loan desk personnel will be at work.

¡äForeign exchange business: There are 3 main types of foreign exchange business. Currency exchange and overseas remittance, which are relatively simple transactions, will be implemented with little difficulty through the strike. But banks explain that transactions requiring special knowledge such as export/import LCs, LC settlement, B/L duties will actually be impossible to carry out. However, some labor union members have agreed to cooperate by answering queries from non-labor union member using portable phones in order to mitigate the inconvenience experienced by customers. Banks have agreed to jointly operate non-labor union members with knowledge in export/import transactions by area, making it possible for services to be provided for certain branches. The labor unions of banks on strike revealed, clients have already settled 1 week`s worth of foreign exchange duties running up to the strike and that there are few foreign exchange duties after the 11th.

¡äCredit card and giro business: Giro related payments such as newspaper, telephone bills will all be possible. Banks will also be able to deposit giro slips and payments given by customers to the Korea Financial Telecommunications & Clearings Institute. Credit card services such as loss reports and other telephone related activities have not established any cooperative agreement between banks and hence long waits will be required. Credit card member stores will find it difficult or even impossible to collect funds by submitting sales slips.