KB Insurance Implements Voluntary Retirement After 2 Years... "Including Early 40s"

Payment of up to 36 months' wages as special severance pay

[Asia Economy Reporter Ki Ha-young] KB Insurance is implementing voluntary retirement for the first time in two years and reorganizing its workforce. For the first time, retirement applications will be accepted from employees in their early 40s.

According to the financial sector on the 7th, the KB Insurance labor and management have tentatively agreed to promote voluntary retirement. On the 2nd, the KB Insurance labor union held a delegates' meeting and conducted a vote on the voluntary retirement plan proposed by the management, resulting in approval.

This is the first time in two years that KB Insurance is implementing voluntary retirement. Eligible applicants are employees aged 45 or older or those with more than 20 years of service. Additionally, those born before 1983 with at least 15 years of service are eligible to apply. Employees who have already entered or are scheduled to enter the wage peak system are also included.

Voluntary retirees this time will receive a special retirement allowance equivalent to 33 to a maximum of 36 months' salary. They can also choose between a job transition support fund (24 million KRW) or children's tuition fees (up to 3.5 million KRW per semester for up to two children), and health checkup expenses (1.2 million KRW) for themselves and their spouses will be provided. If desired, retirees can reduce their retirement allowance partially in exchange for taking on roles such as Frontier (GA) branch manager or handling late-night and holiday compensated consultation duties.

The company aims to start accepting retirement applications from next week and complete the process within this month. Industry experts evaluate that structural adjustments in the insurance industry have begun due to the deteriorating business environment caused by the COVID-19 pandemic.