[Asia Economy Reporter Song Hwajeong] Nearly 400 bank branches disappeared in the first half of this year. Along with the reduction in branches, the number of bank employees also decreased by more than 3,000.
According to data submitted by the Financial Supervisory Service to the National Assembly's Political Affairs Committee on the 11th, the number of bank branches in the first half of this year decreased by 391 compared to the same period last year. General banks reduced by 379 branches, and special banks by 12 branches. For general banks, the number of branches decreased from 4,477 at the end of June last year to 4,098 in the first half of this year. If this downward trend continues, it is expected to fall below 4,000 next year.
As the number of branches decreases, the number of employees is also declining. The number of bank employees decreased by 3,262 in the first half of this year. Domestic banks saw a decrease of 3,315 employees, while foreign bank branches increased by 53 employees. The number of bank employees, which exceeded 120,000 in the first half of last year, dropped to around 116,000. Among domestic banks, general banks decreased by 3,144 employees, and special banks decreased by 171 employees.
The spread of non-face-to-face services and the digital transformation of banks are leading to reductions in both the number of branches and employees.
New hiring by banks is also on the decline. According to data submitted by the Financial Supervisory Service to Kim Hangyu, a member of the National Assembly's Political Affairs Committee from the Democratic Party of Korea, the number of new hires at the six major banks?Kookmin, Shinhan, Hana, Woori, Nonghyup, and Industrial Bank of Korea?decreased from 1,622 in 2018 to 905 at the end of last year, and recorded 508 in the first half of this year.
Looking at each bank, Kookmin Bank's new hires decreased from 246 in 2018 to 132 at the end of last year, and Shinhan Bank's from 281 to 189. Hana Bank's new hires dropped from 108 to 48 during the same period, and Woori Bank's from 306 to 118, falling to less than half. Nonghyup Bank decreased from 404 to 240, and Industrial Bank of Korea from 277 to 178.
In the first half of this year, only Nonghyup (237) and Shinhan (155) recorded triple-digit new hires. Woori had 85, Kookmin 26, and Industrial Bank of Korea only 5. Hana Bank had no new hires in the first half.
As banks are recruiting in the second half of the year, it is expected that the hiring freeze in the banking sector will somewhat ease. Kookmin Bank plans to hire about 400 new and experienced employees in the second half of this year. Shinhan Bank also plans to select 400 employees through open recruitment for general positions and occasional recruitment for digital and ICT (Information and Communication Technology) roles. Woori Financial Group will publicly recruit 360 new employees across its banking, card, capital, and FIS affiliates, and Hana Bank plans to hire double-digit numbers by department. Nonghyup Bank will conduct recruitment for new Grade 5 employees in the second half and plans to hire 120 employees including experienced hires.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
