[Current Status of Internal Control][Exclusive] ① 'Hana·Kookmin Bank' and 'Daegu·Gwangju Bank' Show Poor Performance in Mandatory Leave and Rotation Personnel Management

Operational Status of Internal Control Measures at 4 Major Commercial Banks and 6 Regional Banks
'Banking Sector Internal Control Innovation Plan' to be Fully Implemented Next Year
Urgent Need to Achieve Targets

It has been revealed that the mandatory leave and long-term employee rotation systems included in the financial authorities' 'Bank Internal Control Innovation Plan' are being inadequately operated at Hana Bank and KB Kookmin Bank. Among regional banks, Daegu Bank (mandatory leave system) and Gwangju Bank (long-term employee rotation) showed the poorest performance.

'Unscheduled' Mandatory Leave, Ranking: Hana < Kookmin < Shinhan < Woori

According to data obtained by Asia Economy on the 21st through the office of Kim Hee-gon, a member of the National Assembly's Political Affairs Committee from the People Power Party, titled ‘Status of Employees Subject to Mandatory Leave and Long-term Employees at the Four Major Commercial Banks (KB Kookmin, Shinhan, Hana, Woori) and Six Regional Banks,’ as of July this year, the proportion of employees subject to mandatory leave at Hana Bank was 42.5% (4,962 out of 11,675 employees), the lowest among the four major commercial banks. This was followed by KB Kookmin Bank at 45.7% (7,469 out of 16,342 employees), Shinhan Bank at 52.8% (6,912 out of 13,341 employees), and Woori Bank at 82% (11,222 out of 13,677 employees).

The mandatory leave system is an internal control measure that sends long-term employees and those in high-risk positions at branches and headquarters on unscheduled leave to check for any fraudulent activities. A higher proportion of employees subject to this system indicates that more employees are being monitored to ensure they perform their duties without misconduct. Considering the seriousness of embezzlement cases in the banking sector in recent years, the financial authorities have advanced the implementation of the internal control innovation plan from 2025 to next year.

Among the six regional banks, Daegu Bank had the lowest proportion at 45% (1,423 out of 3,135 employees). This was followed by Jeonbuk Bank at 46.4% (540 out of 1,165 employees), Gwangju Bank at 50% (814 out of 1,627 employees), Jeju Bank at 57.2% (250 out of 437 employees), Gyeongnam Bank at 61% (1,350 out of 2,227 employees), and Busan Bank at 60% (1,638 out of 2,469 employees).

Proportion of Long-term Employees in the Same Position, Ranking: Hana > Kookmin > Shinhan > Woori

In the ‘long-term employee rotation’ system included in the innovation plan, Hana Bank also showed the poorest results. As of July this year, 6% (702 employees) of the total staff were long-term employees in the same department (3 years or more at branches, 5 years or more at headquarters). This was followed by KB Kookmin Bank at 5.15% (842 employees), Shinhan Bank at 0.39% (52 employees), and Woori Bank at 0.04% (6 employees).

Among these, Hana Bank and KB Kookmin Bank have exceeded the innovation plan’s target proportion of 5% for long-term employees, indicating an urgent situation. These two banks must reduce the number of long-term employees by about 100 through rotation by next year.

Among regional banks, Daegu Bank had the highest proportion at 5% (158 employees), followed by Jeju Bank at 3.2% (14 employees), Gwangju Bank at 3.01% (49 employees), Jeonbuk Bank at 2% (22 employees), Busan Bank at 1.15% (29 employees), and Gyeongnam Bank at 0.54% (12 employees).