Massive Layoffs at KEB Credit Likely

The KEB Credit crisis, after the lockout, deteriorated as the labor-management dispute got worse. Customers are likely to face more inconveniences since only a few employees run the computer system.

“Any KEB Credit workers, whether layoffs was offered or not, will be regarded as “not working” unless they return to work this Saturday, the officiating date of merger between KEB and KEB Credit,” said KEB, implying massive layoffs.

“We will hire outsourced employees to normalize the business, unless KEB workers return to work by the 28th,” said Kim Hyoung-min, Managing Director at KEB.

“The deadline for applications under voluntary early retirement ended on 22nd, but whether the deadline will be extended is not confirmed. Employees in receipt of notices of layoffs can also apply for the voluntary early retirement program,” he added.

KEB notified 260 or 40 per cent of its 662 employees of layoffs last weekend. The bank offered a voluntary early retirement program to employees by 5:00 p.m. on the 22nd , but only an estimated 37 employees signed up according to the labor union.

Meanwhile, The Financial Supervisory Service (FSS) is concerned that the current computer system cannot operate fully.

“Since the credit information system does not work, records are not renewed and personal information from ARS or the website is not available,” said an official at the FSS. “Further problems can disable cash advance services and payment approval at stores.”

Currently, only 59 out of a total of 202 IT staff members, 18 full-time and 41 temporary, are working. The number of KEB Card holders is 3.3 million, while only 1 million are in use.

Keuk-In Bae bae2150@donga.com