"Let's Leave When It Gets Too Much" - Employees Voluntarily Writing Resignation Letters for Hopeful Retirement

Surge in Bank Sector Voluntary Retirement Applications
"Uncertain How Long Current Retirement Terms Will Last"

Recently, a 'voluntary early retirement' movement has been emerging in banks. Amid the economic downturn, many bank employees appear to be packing their bags, both to plan a new chapter in their lives and due to anxiety that the current early retirement conditions cannot be maintained indefinitely.

According to the financial sector on the 9th, KB Kookmin Bank accepted early retirement applications from the 28th of last month to the 2nd of this month. As a result, about 730 people expressed their intention to retire, which is more than 50 people higher than the 674 who retired in January last year if all retire.

The eligible age group for early retirement at Kookmin Bank is from 1967 to 1972 (up to age 50). Retirees receive special retirement pay, tuition support of 3.5 million KRW per semester, reemployment support funds up to 34 million KRW, health checkups for themselves and their spouses, and opportunities for reemployment (contract positions) one year after retirement. Although the eligibility and conditions are similar to last year, the company is surprised by the increase in early retirement applicants.

Shinhan Bank began accepting early retirement applications from the first business day of this year and will close applications on the 10th. Officials expect more applicants than last year, citing the 'expansion of early retirement eligibility' as the main reason. Last year, only deputy branch managers and above could apply, but this year, the rank and age have been lowered to below deputy branch manager and up to age 44.

At NH Nonghyup Bank, which completed its early retirement process at the end of last year, lowering the eligible age to 40 resulted in 493 employees leaving the company, more than 60 people higher than the 427 in 2021. Woori Bank has also expanded the eligibility to employees in their 40s, raising the possibility of a large number of departures. Accordingly, the banking sector expects that more than 3,000 employees will leave from KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup Banks alone within about two months from last month to this month.

The surge in early retirement is influenced more by employees' voluntary actions than by the banks' needs. Due to digital transformation and the reduction of offline branches, the number of bank employees needs to be gradually reduced, but far more bank employees are requesting early retirement themselves through labor unions.

Anxiety that the current early retirement conditions cannot be maintained forever is also fueling the increase in early retirement. Although there are some differences depending on the bank, length of service, and rank, the banking sector explains that typically, deputy branch manager-level personnel at domestic commercial banks receive about 400 to 500 million KRW when they take early retirement, combining special retirement pay and regular retirement pay.