Title: October 1013, 2004
1The 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
2- 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
3 ? Change of Financial Institution Numbers.
Unit number
4? Change of Financial Workers
Unit person
5- 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.
6 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
7Characteristics of Financial Restructuring
TREND OF FOREIGN SHAREHOLDING RATIO
Unit
Source Bank of Korea
8- Characteristics of Financial Restructuring
STATUS OF FOREIGN CAPITAL INVESTMENT IN FINANCIAL
INDUSTRY
UNIT 100 MILLION DOLLARS
9- 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
10- 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.
11- 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
12Operating 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
13Chohung 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
!!!