October 1013, 2004

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The Second UNI-APRO Finance Conference Oppressio
n of Speculative Capitals Counter-move of
Labor Union - Focusing on Financial Policy after
IMF financial crisis -
( October 10-13, 2004 )
Youn Tai Soo President Chohung Bank Branch of
Korea Financial Industry Union
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• IMF Financial Crisis

• Unilateral Restructuring Policy by IMF and the
  Government through compulsory MA
• Sold banks to multi-national speculative
  capitals at a giveaway price
• Not securing the stability of financial industry
  any more
• Not contributing to the development of national
  economy
• Threatening financial workers rights to life
• Concentrating and monopolizing by a few foreign
  capital giants
• Deepening capital subordination by foreign
  capitals

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? Change of Financial Institution Numbers.
Unit number
4
? Change of Financial Workers
Unit person
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• Characteristics of Financial Restructuring

1. Compulsory MA led by the Government

• All restructuring plans were implemented by
  compulsory and oppressive work-outs or MA in
  spite of strong protests and resistance from the
  related parties.
• The present restructuring is going on the way of
  privatizing financial institutions with public
  funds from the Government to sell to
  multi-national capitals.

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Characteristics of Financial Restructuring
2. Advocate Multi-national Capitals Interests
A CASE STUDY OF CARLYLE GROUP
Unit Million Dollars
Wooribank without public funds is the sole
bank not subordinated by foreign capitals.
Investment Period 3.3 years
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Characteristics of Financial Restructuring
TREND OF FOREIGN SHAREHOLDING RATIO
Unit
Source Bank of Korea
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• Characteristics of Financial Restructuring

STATUS OF FOREIGN CAPITAL INVESTMENT IN FINANCIAL
INDUSTRY
UNIT 100 MILLION DOLLARS
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• Characteristics of Financial Restructuring

• Reckless persistence on Mega-merger
• Disregarding labor market flexibility
• Serious oppression on regional banks
• small-mid sized financial institutions
• caused to the collapse of their business
  operation
• basis.
• 6. Expanding liberalization policy in financial
• industry

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• Negative Effects of Financial Restructuring

• After IMF financial crisis, Korean government
  enforced wrong policies in financial industry,
  consequently caused capital subordination and
  governance by foreign capitals.
• Meanwhile, banks have been concentrated on
  consumer credit rather than lending to
  enterprises in order to avoid credit risk.
• As the result, a lot of workers at small-mid
  sized companies lost their jobs due to
  bankruptcy. Workers wages at most workplaces
  were also reduced. These led to the shrinking of
  consumption and further to overall recession of
  national economy.
• In addition, the Governments permission of the
  sale of insurance products at bank counters is
  causing instability of employment of 100,000
  workers at insurance companies.

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• Directions To Cope With Multi-national Capitals

• Extend Public Interest in Financial Industry
• Secure stability of Financial System
• Control Multi-national Capitals
• Improve governance structure and enhance
  supervising function
• Secure classified professionalism by financial
  sector
• Eliminate market disturbing factors led by
  monopoly or oligopoly
• Eliminate capital subordination by foreign
  capitals
• Secure rights to life for banking workers
• Operate Supervising Center for Speculative
  Capitals

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Operating a Supervising Center for Foreign
Speculative Funds

• To address domestic finance industrys
  subordination by foreign speculative funds, the
  Union is operating a speculation watchdog center
  together with its finance economic research
  institute and other related unions.

• ltFoundation Forum for Spec Watchdog Centergt

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Chohung Bank Branch of KFIU
End of Presentation Thank you )
Thank you very much for your joining in Chohung
Bank. We hope you had a good time. See you again
!!!