KB Kookmin Bank’s labor union has filed for dispute mediation with the National Labor Relations Commission. (Image courtesy of Kookmin Bank)
SEOUL, Jan. 14 (Korea Bizwire) — KB Kookmin Bank’s labor union has filed for dispute mediation with the National Labor Relations Commission, demanding a performance bonus equivalent to 300% of base salary and an additional 10 million won in special incentives. If mediation fails, this could lead to the bank’s first general strike since 2019.
Despite ongoing economic challenges from high interest rates, exchange rates, and inflation, South Korea’s major banks have continued to increase wages and performance bonuses, drawing criticism for what some see as excessive spending.
Among the country’s five leading banks—KB Kookmin, Shinhan, Hana, Woori, and NongHyup—only Hana Bank has yet to finalize its wage negotiations. KB Kookmin Bank remains at odds with its union over compensation terms.
The other four banks have agreed to a 2.8% wage increase for general employees, up from 2.0% in 2024. KB Kookmin is expected to follow suit if negotiations proceed. Performance bonuses have also risen. Shinhan and Hana Banks set bonuses at 280% of base salary.
Shinhan increased its reward points from 1 million to 1.5 million, while Hana doubled its cash bonus to 2 million won and added 500,000 won in welfare points. Woori Bank raised its welfare points to 3 million won, and NongHyup maintained a 200% base salary bonus with an additional 3 million won cash incentive.
KB Kookmin Bank’s union is pushing for higher rewards than last year’s 280% performance bonus, citing increased workloads. However, management argues that rising costs, including 842 billion won in compensation for losses from H-index ELS products, make meeting these demands difficult.
If mediation fails, the union could secure the right to strike following a general vote among members. The bank’s last strike in January 2019 saw over 10,000 employees participate under then-union leader Park Hong-bae, now a Democratic Party lawmaker.
Meanwhile, banks have significantly expanded employee welfare programs. Parental benefits have grown, allowing employees with children in grades 1-2 to start work 30 minutes later and offering flexible work hours for parents of first graders.
Paternity leave doubled from 10 to 20 days, infertility leave expanded from three to six days, and childcare leave extended from two to two and a half years.
Woori Bank increased leave for miscarriage and stillbirth from seven to ten days, with spousal leave rising from two to three days. Personal pension support also grew from 200,000 to 250,000 won monthly.
Hana Bank raised childbirth bonuses dramatically—500,000 won for a first child up to 2 million won for a fourth. They also introduced a 500,000 won condolence payment for miscarriage and expanded childcare subsidies to 2.4 million won annually per child.
Shinhan Bank increased mandatory vacation days from 13 to 15 and boosted digital and ICT specialist allowances from 150,000 to 175,000 won monthly.
According to 2023 reports, the average annual income for employees at South Korea’s top five banks was 112.65 million won. KB Kookmin led with 118.21 million won, followed by Hana (115.66 million won), NongHyup (110.69 million won), Woori (109.69 million won), and Shinhan (108.98 million won).
Ashley Song (ashley@koreabizwire.com)
