South Korea's major banks, once dubbed "dream jobs" for their high salaries and job security, are seeing a surge in voluntary retirement applications as the year draws to a close. More than 2,000 bankers are expected to leave their positions this year as branch networks continue to shrink amid the shift to digital and non-face-to-face banking services driven by mobile banking adoption.
Shinhan Bank began accepting voluntary retirement applications on December 15, according to banking industry sources on Thursday. Eligible employees include branch deputy managers and above with at least 15 years of service born in 1967 or later, staff at grade 4 or below with at least 15 years of service born in 1985 or earlier, and retail service employees with at least 10 years of service. Those accepted will receive special severance packages ranging from 7 to 31 months of base salary depending on birth year, with their last day of employment set for January 2.
NH NongHyup Bank finalized 446 voluntary retirees after accepting applications from November 18-21. The figure marks a third consecutive annual increase, up from 372 in 2023 and 391 in 2024. The program targets employees aged 40 or older with at least 10 years of service, offering 20 months of average monthly salary. Those born in 1969 (aged 56) receive 28 months of pay. Their retirement date is December 31.
Earlier this year, KB Kookmin Bank saw 647 voluntary retirements, followed by Shinhan Bank with 541, Woori Bank with 429, and Hana Bank with 263 across both halves of the year, totaling 1,880 departures. Including NongHyup Bank's year-end retirees, the combined voluntary retirement figure for the five major banks is expected to exceed 2,000. The total could climb even higher when factoring in Suhyup Bank, which also accepted applications last month.
Workforce and branch numbers continue to decline. According to Financial Supervisory Service data, total employees at the five major banks stood at 71,548 in the first half of this year, down 1,077 from 72,625 a year earlier. Domestic branches fell by 161 over the same period, from 3,920 to 3,759.
Severance packages for voluntary retirees reportedly average "over 550 million won." According to each bank's 2024 management reports, the average special severance payment per voluntary retiree last year was 350.27 million won.
