[2021 National Audit] Export-Import Bank's Abnormal Impediment System Operation... Headquarters Chief's 3-Year Guarantee Evades Application of Age 57 Limit

Assemblyman Kim Ju-young "Need to Improve the Impije System... Must Correct It"

[Asia Economy Reporter Kwangho Lee] It has been revealed that the Export-Import Bank of Korea guarantees the term of office for its division heads and postpones the application of the wage peak system. Although the Export-Import Bank applies the wage peak system starting at age 57, it defers the application until the end of the term if the division head is still in office. Despite division heads being subject to the wage peak system as employees of the Export-Import Bank, the deferral due to guaranteed terms of office may raise issues of fairness.

On the 13th, Kim Jooyoung, a member of the National Assembly’s Planning and Finance Committee from the Democratic Party, confirmed the status of division heads at the Export-Import Bank over the past five years. Out of 22 division heads, 16 had reached the age to enter the wage peak system during their term but were not subjected to it.

Among them, five even served as division heads until the age of 59, just before retirement, avoiding the wage peak system for as long as 2.5 years.

In the case of the Export-Import Bank, the wage peak system is applied starting at age 56 until last year, and from July this year, it applies starting at age 57. After entering the wage peak system, wages are reduced by 10% annually for three years until retirement. The retirement age is 60.

The term of office for a division head is basically two years, with an additional one year guaranteed at the discretion of the president, usually securing a three-year term. However, even if the division head reaches age 57 (or 56 before July 2021) during the term, they are not subjected to the wage peak system.

Assemblyman Kim pointed out, "While all employees except executives are subject to the wage peak system, division heads enjoy privileges," and added, "Postponing the application of the wage peak system for certain positions can cause fairness issues."

He continued, "As a policy financial institution, the Export-Import Bank should set an example, but operating the wage peak system in a distorted manner is not right," and added, "If improvements to the wage peak system are necessary, demands for reform should be made, and if there are internal issues such as expanding executives or problems with job and personnel management, they should be actively corrected."

This content was produced with the assistance of AI translation services.