IBK union secures breakthrough on wage ceiling after Supreme Court ruling

In January 2025, this revised standard was applied in a case brought by the IBK union and retirees. The court overturned an earlier decision and ordered that previously excluded bonuses be included in wage calculations.

Following this legal shift, the Financial Services Commission (FSC), through its Management and Budget Council, decided that resulting wage increases would not count toward IBK’s Total Labour Cost (TLC) ceiling. This move recognized back payments from December 2024 to June 2025 as exempt from spending limits imposed on the bank.

With these changes implemented by the FSC, KFIU–IBK union and IBK management finalized their delayed 2024 Wage and Collective Bargaining Agreement on July 11, 2025. The bank agreed to retroactively pay previously excluded wages for the specified period without counting them against mandated labor cost ceilings—a first under this system.

This outcome may have broader implications for more than half a million public sector workers facing similar restrictions on wage ceilings. Unions are now seeking a full review of TLC policies across public institutions and advocating for corrections related to unpaid overtime or misclassified wage items.

“We appreciate UNI Global Union’s backing, especially its 2023 letter urging the Korean government to respect ILO core conventions on freedom of association and collective bargaining,” said KFIU President Kim Hyung-Sun.

“This outcome reflects the strength of collective action and the persistence of the entire KFIU–IBK union. Navigating such complex legal and institutional barriers takes tremendous unity and resolve. Their perseverance is a reminder of what can be achieved when workers stand together for fairness and dignity,” stated UNI Asia & Pacific Regional Secretary Rajendra Acharya.

The efforts of Korean unions were also supported at the sixth UNI Asia & Pacific Regional Conference held in Bangkok in 2024, where delegates endorsed calls to address limitations on collective bargaining rights for public corporation employees.