English translation of the original Korean report. Images and source documents may contain Korean text.

Despite an operating profit of 1.4347 trillion won, conflict over a 3% wage increase rate; PB performance pay reform and staffing issues are also points of contention.

The KB Securities Labor Union held a large-scale rally for the first time in 10 years in protest of the company’s proposed 3% wage increase rate and issues with performance pay distribution.

The union stated that the company is ignoring employees’ demands for compensation despite achieving high performance and urged a change in the management’s negotiation stance. In particular, with the overlap of private banker (PB) performance pay reform and issues regarding the implementation of existing labor-management agreements, the conflict is escalating.

According to the Korean Federation of Office & Financial Workers’ Unions on the 6th, the KB Securities branch (Branch Head Jo Kyung-bong) held the ‘All-Member Full-Force Resolution Rally’ yesterday at 6 PM in front of KB Financial Group in Yeouido, Seoul.

Over 900 of the approximately 1,700 total union members estimated by the union attended, with members gathering from various parts of the country, including Jeju, Gwangju, Busan, Daegu, and Daejeon. The 900 seats prepared were insufficient, so some attendees participated in the rally standing at the back.

Branch Head Jo Kyung-bong stated that this was the first time in 10 years since approximately 1,200 union members held a rally in 2016 against a 10% wage cut proposal.

He characterized this rally as “a sharp rebuke against the incompetence of management, which only watches the parent company and cannot make any decisions.” He then hinted at the possibility of strong action, saying, “We have money. Let’s go on strike. What are we afraid of?”

■ Despite an operating profit of 1.4347 trillion won, 3% wage increase conflict; PB performance pay reform is also a point of contention.

Lee Jae-jin, Chairman of the Korean Federation of Office & Financial Workers’ Unions, criticized KB Securities CEO Kang Jin-doo’s negotiation stance and pointed out, “KB Securities’ profit and loss this year is close to 1.4 trillion won, but the company says it cannot offer a wage increase of more than 3%.”

KB Securities’ cumulative operating profit for the third quarter of this year was 1.4347 trillion won, an increase of 114.8% compared to the same period last year, and net profit recorded 1.074 trillion won. The union initially demanded a 6.4% wage increase and urged the company to accept at least 5% or more during the Central Labor Relations Commission’s mediation process.

Conflict over the reform of the performance pay system is also ongoing. According to reports from the financial investment industry on the 6th, KB Securities is pursuing a plan to separate a portion of the non-face-to-face transaction profits from accounts not directly managed by PBs from the existing PB team performance pay fund and distribute it to customer service (CS) teams, among others.

The company’s position is that this is a measure to reflect the contribution of each job group due to the expansion of digital transactions. In contrast, the union is protesting, stating that it is a method of dividing the share of existing employees without increasing the overall performance pay fund. The union also raised issues regarding the promise to deploy at least three full-time CS team employees and improving the treatment of IT staff.

After three rounds of mediation by the Central Labor Relations Commission failed, the union approved industrial action with a 94.19% approval rate in a vote on September 29-30.

Chairman Lee Jae-jin demanded that Lee Jae-geun, the nominee for KB Financial Group Chairman, who faces an extraordinary general meeting of shareholders on the 20th, either engage in direct negotiations or resolve the issues before then.

After the rally, union members who marched to the front of KB Securities headquarters demanded fair performance distribution and the implementation of labor-management agreements. Branch Head Jo Kyung-bong pointed out the shortage of new hires and the burden of on-site work, demanding a response from management.