Customers visit a bank branch in Seoul on Aug. 30, 2021. (Yonhap)
SEOUL, Jan. 10 (Korea Bizwire) — An unexpected boom of voluntary retirement is spreading across the South Korea’s banking industry, which has seen a major surge in profits in the last couple of years.
KB Kookmin Bank received some 730 applications for voluntary retirement recently, up by more than 50 applications since January of last year.
Shinhan Bank also began receiving applications for voluntary retirement on Jan. 2 and plans to close on Tuesday. The bank expects that the number of applications will exceed that of last year.
According to industry analysts, an estimated 3,000 employees are set to depart from the country’s “big 5” banks — KB Kookmin, Shinhan, Hana, Woori and Nonghyup — alone.
The surging demand for voluntary retirement has been led by employees, rather than the needs of the company.
“The benefits they will receive for retiring voluntarily come on an unprecedented scale. They know that it’s possible only because of the surge in loans in the post-pandemic era,” an industry official said.
“They know that once the economic recession takes speed, the banking industry will feel the impact. They want to leave now when the conditions are most ideal.”
It is customary for a deputy head of a bank’s branch office to receive 400-500 million won (US$321,800-402,250) as a benefit for retiring voluntarily, which includes both ordinary and special severance pay.
Ashley Song (ashley@koreabizwire.com)
