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Biz News Korea(Eng)
S. Korean banks shed jobs to compete in digital age
- Collected
- 2018.01.03
- Distributed
- 2018.01.04
- Source
- Go Direct
Shinhan Bank, country’s leading commercial lender, said Tuesday that it is downsizing its workforce through a voluntary retirement program. Its workers who have worked for the company for 15 years or more and born before 1979 have until Friday to submit their applications to leave in exchange of generous severance pay tantamount to from 8 to 36-month of salary depending on their years of service.
The bank has been shedding employees through a similar voluntary retirement program at the beginning of each year and shaved nearly 280 jobs last year. It expects greater number of employees to apply for the voluntary retirement program than last year as it removed the condition that only branch’s deputy manager or those in higher positions may request for voluntary retirement.
Another leading lender KB Kookmin Bank also had carried out voluntary retirement program between Dec. 28 and Jan. 2. The bank received applications from senior employees who will be getting less pay in return for extended retirement age under the so-called peak wage system in 2019 and 2020.
KEB Hana Bank let go of 207 employees eligible for the peak wage system through a special early retirement program at the end of last year, and NH Nonghyup Bank reduced 534 jobs through a voluntary retirement program in November.
Last year, local banks posted stellar earnings amid unfazed rise in consumer debt and a bullish stock market. But the brick-and-mortar banks are forced to cut costs to compete with online counterparts.
By Kim Tae-sung and Cho Jeehyun
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]