Union Opposes JB Financial and BNK Merger Proposal, Citing Job Cuts

The labor union of Jeonbuk Bank has expressed strong opposition to the merger proposal between JB Financial Group and BNK Financial Group put forth by Align Partners. The union argues that the merger would inevitably lead to job cuts and a reduction in local branches.

On July 17, the union released a statement condemning Align Partners' proposal, stating, "While they claim to promote economies of scale and investments in artificial intelligence (AI), the reality is that this is a typical self-serving behavior of financial capital aimed at short-term stock price boosts and their own exit strategy."

Previously, the activist hedge fund Align Partners announced on July 14 that it had sent an open letter to the boards of both companies, urging them to consider the merger.

As a result, the two financial groups are required to submit a feasibility study on the merger by August 7, with a plan for implementation to be disclosed before the third-quarter earnings announcement. Although there is no legal obligation to respond, they are considering submitting a reply due to Align Partners being a major shareholder.

However, the labor union expressed concerns, stating, "The cost synergies and efficiency improvements from AI transition that Align Partners claims will ultimately lead to organizational downsizing, large-scale layoffs, and the closure of local branches."

They further pointed out, "The industrial structure, economic conditions, and financial demands in Honam and Yeongnam are completely different. To define the merger as the only solution simply because the service areas do not overlap shows a lack of understanding of the region."

Jeong Won-ho, chairman of the Jeonbuk Bank labor union, emphasized, "The true owners of JB Financial Group are not a few shareholders chasing short-term profits, but the local community, customers, and employees. We will resolutely oppose any attempts by financial capital that threaten the foundation of local finance without compromise."