Customers visit a bank branch in Seoul on Aug. 30, 2021. (Yonhap)
SEOUL, Aug. 18 (Korea Bizwire) — South Korea’s major banks have recently reported multi-year record profits. Ironically, they are now implementing voluntary retirement programs, even for employees in their 30s.
At Shinhan Bank, labor and management recently reached an agreement on voluntary retirement conditions. They have decided to accept applications for several days, starting this weekend and extending until early next week.
Employees eligible for the voluntary retirement program are those ranked below assistant branch managers, with over 15 years of service and born before 1983.
Meanwhile, Hana Bank completed its second-half voluntary retirement initiative at the end of the previous month.
The lender received applications from employees over 40 with a service period of more than 15 years. Ultimately, a total of 60 employees voluntarily retired on July 31.
The increase in voluntary retirement within the banking industry can be attributed to employee demand for such programs, rather than the banks’ needs.
“Young employees preparing for the next phase of their lives strongly requested an expansion of eligible beneficiaries through the labor union, and management responded to these appeals,” an official from Shinhan Bank said.
The nation’s five major commercial lenders — KB Kookmin, Shinhan, Woori, KEB Hana and NH Nonghyup Banks — recorded an average severance payment of 540 million won (US$404,340) per capita in 2022, according to data from the Financial Services Commission.
J. S. Shin (js_shin@koreabizwire.com)
