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Thousands of bank clerks expected to leave on voluntary retirement

2023-01-26 03:00:10

 

Seoul's financial district on Yeouido / gettyimagesbank
Seoul's financial district on Yeouido / gettyimagesbank

By Lee Min-hyung

Thousands of bank clerks will leave on voluntary retirement this year, as major commercial lenders are moving to expand compensation on solid earnings growth.

According to the industry, the number of employees voluntarily retiring from the nation's four largest banks ― KB, Shinhan, Hana and Woori ― will exceed 2,000.

Industry officials said a growing number of people in the financial industry do not consider banks as a lifelong workplace amid the rise of digital banking and the rapidly changing social atmosphere favoring early retirement.

"A bank clerk has long been perceived as one of the most stable jobs, and most people preferred to work until the regular retirement age, but this is no longer the case," an official from a major lender here said.

"More people, especially in their 40s and early 50s, consider early retirement when banks offer compensation they find to be satisfactory," the official said.

The number of voluntary retirements at banks has been on a sharp rise in recent years. The annual figure reached about 1,700 in 2020, but has since risen to over 2,000 in more recent years.

Hana Bank said it started receiving applications Tuesday for special voluntary retirement from employees who worked there for more than 15 years and were older than 40. Those who are selected will receive up to 36 months' salary in severance pay, depending on their work period and age.

Shinhan Bank also put up a notice on voluntary retirement early this year. Those whose rank is below a sub-manager and are aged over 44 can apply for the retirement. Late last month, Woori Bank and NongHyup Bank began accepting applicants for voluntary retirement packages.

KB Kookmin Bank will offer a maximum of 35 months of salary to those who apply for voluntary retirement. In addition, it will also provide a reemployment subsidies worth as much as 34 million won.



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