Nearly 2,500 employees left Korea's five largest banks through voluntary retirement programs last year, even as the average banker's annual salary surpassed 100 million won. The trend reflects continued workforce reductions across the banking sector amid digital transformation, branch closures, and organizational streamlining.
The eligibility age for voluntary retirement has been lowered to employees in their 40s, prompting more workers to accept severance packages worth hundreds of millions of won and prepare for second careers.
According to the "2025 Bank Management Status Report" disclosed by each bank through the Korea Federation of Banks on Tuesday, a total of 2,470 employees took voluntary retirement last year from the five major banks — KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup. The figure represents an increase of 483, or about 24%, from 1,987 in 2024, marking the highest level since 2021, when related statistics first became available.
Voluntary retirees at the top five banks have hovered around 2,000 in recent years: 2,093 in 2021, 2,157 in 2022, 2,392 in 2023, and 1,987 in 2024, before rising sharply again last year. Given the scale of voluntary retirement programs already announced this year, more than 2,000 employees are expected to leave the banks in 2025 as well, observers said.
The expansion of eligibility ages is cited as a key reason for the increase. Shinhan Bank early last year widened its voluntary retirement eligibility to include employees born in 1986. As a result, the number of voluntary retirees more than doubled, from 234 in 2024 to 541 last year.
Hana Bank also implemented a "pre-retirement special retirement" program last year for employees aged 40 or older with at least 15 years of service. NH Nonghyup Bank conducted voluntary retirement for employees aged 40 to 56 across all ranks with at least 10 years of service. As a result, voluntary retirees at Hana Bank rose from 325 to 410, while Nonghyup Bank's figure climbed from 391 to 443.
The shrinking terms of voluntary retirement packages also appear to be influencing employees' decisions, with many concluding it is better to leave while they still can. As recently as 2023, voluntary retirement packages offered up to 36 months of salary, but last year the maximum was generally reduced to about 31 months.
The average voluntary retirement payment per person at the five major banks last year was 348.29 million won. That was about 13.39 million won less than the 361.68 million won paid in 2023, and roughly in line with the 344.95 million won paid in 2024.
Hana Bank paid the highest average voluntary retirement package among the five banks. Hana Bank paid an average of 387.23 million won per person to its 410 voluntary retirees last year. It was followed by Kookmin Bank at 385 million won, Woori Bank at 353.68 million won, Nonghyup Bank at 333.17 million won, and Shinhan Bank at 282.39 million won.
Voluntary retirees receive statutory severance pay in addition to special retirement compensation. Taking both into account, actual payouts are estimated to average between 400 million and 500 million won per person, although individual amounts vary widely based on years of service and rank.
Meanwhile, the average annual income per employee, excluding executives, at the five major banks last year stood at 117.91 million won. That was 3.01 million won higher than the 114.90 million won recorded in 2024. By bank, Hana Bank was highest at 119.84 million won, followed by Kookmin Bank at 119.63 million won, Woori Bank at 118.23 million won, Nonghyup Bank at 116.92 million won, and Shinhan Bank at 114.96 million won.
Will my performance bonus be included in my severance pay? Thanks to the Supreme Court's ruling on the conditions for "true wages," severance pay outcomes diverged sharply between Samsung and SK | Issue Sketch
