People in their 40s are also included in the target of voluntary retirement
It is possible that more than 2,000 people will leave the big four banks in January next year.
Although the banking industry is achieving record performance, paradoxically, the wind of unprecedented job cuts is expected to blow. The number of retirees at the four main banks is expected to exceed 2,000.
Due to the rapid digital transformation, the number of visitors to shops has fallen, and concerns about an economic recession are high. If job cuts in the past were a measure of self-education brought out in an unavoidable situation, now they tend to be regular.
According to the bank sector on the 29th, KB Kookmin Bank started accepting applications for voluntary retirement from the 28th. The subjects were born between 1967 and 1972, and 50 years old.
For final retirees, special severance pay (average monthly salary for 23 to 35 months depending on length of service), school expenses of 3.5 million earned per semester (up to 8 semesters), re-employment support of up to 34 million and earned, health examination for themselves and their spouse, and re-employment after 1 year of retirement (contract worker) Accepting opportunities, etc. Applications are due on 2 January.
Woori Bank is also accepting applications for voluntary retirement for managers, managers, and executives born before 1974, 1977, and 1980, respectively. In the case of those born in 1967, 24 months’ worth of salary and 36 months’ worth of average monthly salary for the rest were set as special severance pay.
Up to 28 million won in school expenses per child is provided, up to 33 million is supported in re-employment support, health check vouchers, and travel vouchers worth 3 million also won. Shinhan Bank and Hana Bank are also expected to announce their voluntary retirement this week or early this year.
Most of the voluntary retirements at the four main banks are expected to be completed by January next year. Previously, in January this year, 674 people from KB Kookmin Bank, 250 people from Shinhan Bank, 478 people from Hana Bank, and 415 people from Woori Bank left the bank in the form of voluntary retirement. 1,817 employees are quitting at the four main banks alone.
An official from KB Kookmin Bank predicted, “Since the conditions are similar, the number of retirees in January next year will not be less than in January this year.”
In this year’s voluntary retirement announcement, as the target age has been lowered to 40 years, some predict that the final number of voluntary retirees will exceed 2,000 in January next year. Banks see it as the right time for ‘workforce rotation’ as they can offer favorable conditions for voluntary retirement to employees as they have achieved record breaking results.
In fact, NH Nonghyup Bank received an application for voluntary retirement from the 18th of last month, and the final number of retirees reached about 500. This is over 70 more than last year.
Those eligible for voluntary retirement at NH Nonghyup Bank are between the ages of 40 and 56 among those who have worked for more than 10 years in each position. The ‘MZ generation’ (those born in the early 1980s to early 2000s) were included in the applicants for voluntary retirement. The amount of compensation will be increased by 11 months compared to last year, and 20 to 39 months of average monthly salary will be paid.
Suhyup Bank also accepted requests for voluntary retirement from all positions with more than 15 years of service. The amount of compensation will be up to 37 months, and the final decision will be made on the 31st after a review.
Among regional banks, BNK Busan Bank and BNK Kyongnam Bank completed applications by the 1st. For those who have worked for more than 10 years, 32 to 42 months of average monthly salary are paid.
Early retirement, which started in the banking sector, is expected to spread to securities firms. First, small and medium-sized securities companies with a high ratio of real estate project financing (PF) are embarking on restructuring.
An official from the financial sector predicted, “If in the past, the target for voluntary retirement was mainly in their 50s or older, now the target is expanding to those in their 40s or younger, so the a cold wave of employment next year likely. to become more serious.”
Some in the financial sector also have a negative view of voluntary retirement.
An industry insider said, “It is bittersweet to see banks reducing the workforce in a hurry to cut costs even though they achieved a record performance last year.” We need to devise a way to trust professional tasks like this.”
