This file photo taken Aug. 25, 2022, shows a bank branch in Seoul. (Yonhap)
SEOUL, Dec. 18 (Korea Bizwire) — Five major South Korean banks have offered a voluntary retirement program to their 2,400 employees this year despite record profits amid higher interest rates, industry sources said Sunday.
The voluntary retirement plans at the five lenders — KB Kookmin, Shinhan, Woori, Hana, and NH Nonghyup – are accelerating as an increasing number of people turn to non-contact financial transactions due to the prolonged COVID-19 pandemic.
Those who apply for the program will receive years of their salaries, worth up to 400 million-500 million won (US$305,000-$380,000) depending on position, educational expenses for children and other benefits, an industry official said.
In the overall banking industry, at least 3,000 workers are expected to quit through the retirement program this year.
Last year, more than 5,000 employees accepted the retirement program in the banking sector, including 2,100 employees at Citibank Korea Inc., the Korean unit of U.S. banking giant Citigroup, as it decided to close its retail banking services.
The number of bank branch closures continued from 74 in 2018, 94 in 2019, 216 in 2020, 209 in 2021 and 179 this year through August, according to the Financial Supervisory Service.
(Yonhap)
