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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] More than 2,000 employees at South Korea’s five largest commercial banks opted for voluntary retirement between the end of last year and early this year, reinforcing the view that workforce restructuring has become a routine feature of the country’s banking sector.
According to industry data released on February 1, a total of 2,364 employees left KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and NH NongHyup Bank through voluntary retirement programs during the period. This compares with 2,324 departures recorded over the same period a year earlier, indicating a similar pace year on year.
By bank, Shinhan Bank recorded the largest number of voluntary retirees at 669 employees, up by more than 100 from January last year and marking its highest level since 2020. NH NongHyup Bank also saw an increase, with 443 employees leaving following its December retirement program, compared with 391 the previous year.
In contrast, departures declined at KB Kookmin Bank (549 employees), Hana Bank (283), and Woori Bank (420), all of which reported fewer voluntary retirements than a year earlier.
Industry observers note that expectations for further improvements in voluntary retirement packages have faded, leading to a structural pattern in which several thousand bank employees leave each year. Voluntary retirements at the five major banks hovered around 2,200 employees in 2022–2023, fell to around 1,800 in 2024 as retirement benefits were reduced, and rebounded to roughly 2,000 in 2024 and 2025.
Currently, KB Kookmin, Shinhan, Hana, and Woori Banks offer special severance packages of up to 31 months’ salary, while NH NongHyup Bank provides up to 28 months’ salary. This represents a reduction from 2023, when packages reached as high as 35–36 months’ salary.
The scaling back of severance benefits is widely seen as a response to public criticism over banks paying large retirement packages funded by interest income. Nevertheless, payouts remain substantial. Based on banks’ management reports, the average voluntary retirement payment per employee at the five major banks in 2024 stood in the mid-KRW 300 million range.
KB Kookmin Bank and Hana Bank recorded the highest average payments at approximately KRW 370 million, followed by Woori Bank at around KRW 340 million, NH NongHyup Bank at KRW 320 million, and Shinhan Bank at KRW 310 million. Including standard retirement benefits—typically around KRW 100 million—total payouts are estimated to average KRW 400–500 million per employee.
Notably, interim reports released in the first half of last year revealed cases where individual retirement payouts exceeded KRW 1 billion. One top-earning retiree at Hana Bank received KRW 1.06 billion, while other high-ranking retirees at KB Kookmin, Shinhan, and Woori Banks were paid between KRW 700 million and KRW 900 million.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
