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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] SEOUL, South Korea – October 22, 2025 – According to an exclusive report by The Korea Daily (한국일보), the Bank of Korea (BOK) has been automatically deducting more than ₩4 billion (US$2.9 million) annually from employee salaries for membership fees — without obtaining individual consent from workers.
Documents obtained by lawmaker Chun Ha-ram of the Reform New Party reveal that the BOK Employees’ Association (Hangwoohoe) has been deducting 2.8% of base pay from all staff members as monthly dues. In 2024, the association collected ₩4.16 billion from 2,367 employees, and ₩2.19 billion in the first half of 2025.
The association, founded in 1950 to promote fellowship and mutual support, is chaired by the BOK Governor, with deputy governors and Monetary Policy Board members serving in leadership and advisory roles. All employees are automatically enrolled upon joining the central bank, and funds are used for welfare, scholarships, and ceremonial payments.
However, the deductions were allegedly made without explicit individual approval, potentially violating Article 43 of Korea’s Labor Standards Act, which mandates that wages must be paid directly and in full to employees, unless a law or collective agreement allows otherwise.
A BOK spokesperson defended the practice, stating:
“The deductions are made in accordance with our collective agreement with the labor union and do not constitute a legal violation.”
Yet critics point out that the system does not solicit consent from non-union or withdrawn members, raising compliance and fairness concerns. As of 2024, only 56.1% of the bank’s 2,400 employees were unionized, meaning that about 44% of workers may have been charged association fees without consent.
Additional controversy surrounds the use of funds—particularly tuition subsidies for members’ children—creating inequity for employees without dependents. Refunds are available upon retirement, but many workers have voiced frustration over decades-long delays in reimbursement.
Lawmaker Chun Ha-ram urged immediate corrective measures, stating,
“The Bank of Korea must clarify why salary deductions were made without consent and conduct a full audit of the association’s accounting and governance. Institutional reform is urgently needed.”
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
