KB Kookmin Bank's workforce dropped below 13,000 for the first time last year, as the retail banking leader accelerates staff reductions amid a push for productivity gains and artificial intelligence transformation.
The bank employed 12,925 workers at the end of 2024, down 579 or 4.28% from a year earlier, according to financial industry data released Sunday.
KB Kookmin Bank, long the largest employer among Korean financial institutions due to its retail banking strength, has seen steady workforce declines. Staff numbered 18,235 at the end of 2007, before KB Financial Group's formation. That figure fell to 16,686 by the end of 2013 following efficiency measures under former KB Financial Group Chairman Eo Yun-dae.
Continued branch consolidations and cost-cutting efforts have since pushed headcount to the 12,000 level—a 29.1% plunge over 18 years.
Branch networks have contracted sharply as well. Regular branches totaled 987 at the end of 2007, peaked at 1,137 in 2008, and held at 1,123 through 2013. The network has since shrunk to just 620 locations as internet and mobile banking adoption accelerated and foot traffic declined.
"With mobile banking growth, there's no need to maintain large branch staff," a financial industry official said. "Even the leading bank is continuously reducing its workforce."
Market observers expect the pace of cuts to quicken as AI applications expand across banking operations and management. KB Financial Group has made AI transformation a strategic priority, viewing it as an unavoidable industry shift.
"The more AI is applied to frontline operations, the more employment will inevitably decline," another industry official said. "How each financial group redeploys surplus staff—whether to enhance customer consulting services or other areas—will vary by strategy."