Annual Salary per Employee at 5 Major Banks Exceeds 100 Million Won... Retirement Pay Up to 600 Million Won

Korea Federation of Banks 'Bank Management Status Disclosure Report'

Wage Income and Retirement Pay Highest at Hana Bank with 110 Million KRW and 600 Million KRW Respectively
Highest Executive Income at KB Kookmin Bank, 380 Million KRW

After President Yoon's "Bank Servant" Remarks, Ripple Effects

Last year, the average labor income per employee at the five major banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) exceeded 100 million KRW by a wide margin. In particular, the labor income of executives at these five banks was in the range of 200 to 300 million KRW. Employee severance pay ranged from 400 million KRW to as much as 600 million KRW per person.

According to the "Bank Management Status Disclosure Report" released on the 1st by the Korea Federation of Banks, as interest rates rose starting last year, the compensation of bank employees generating the highest profits reached into the hundreds of millions of KRW.

First, looking at the "average labor income per employee" at the five major banks, Hana Bank recorded the highest at 114.85 million KRW. KB Kookmin Bank (113.69 million KRW), Shinhan Bank (110.78 million KRW), NH Nonghyup (106.22 million KRW), and Woori Bank (104.76 million KRW) followed.

The "average labor income per executive" was highest at KB Kookmin Bank (385.39 million KRW). Shinhan Bank (318.60 million KRW) and Woori Bank (300.63 million KRW) both exceeded 300 million KRW. Hana Bank (260.57 million KRW) and NH Nonghyup (225.13 million KRW) followed.

The "average labor income per staff member" ranked as follows: Hana Bank (114.24 million KRW), KB Kookmin Bank (112.35 million KRW), Shinhan Bank (109.55 million KRW), NH Nonghyup (106.05 million KRW), and Woori Bank (104.49 million KRW).

The "average severance pay per employee" reached 600 million KRW (598.17 million KRW) at Hana Bank. Woori Bank (441.54 million KRW) and KB Kookmin Bank (408.72 million KRW) both exceeded 400 million KRW. NH Nonghyup (381.20 million KRW) and Shinhan Bank (370.92 million KRW) were close to 400 million KRW as well.

The "average voluntary retirement pay" was ranked as follows: Hana Bank (407.94 million KRW), KB Kookmin Bank (376 million KRW), Woori Bank (372.36 million KRW), NH Nonghyup (327.12 million KRW), and Shinhan Bank (293.96 million KRW). Voluntary retirement pay is included in the employee severance pay figures.

Following President Yoon Suk-yeol's warning on the 30th of last month, stating, "It is deeply saddening to see small business owners struggling with high interest rates having to work themselves to death only to hand over their earnings entirely to repay loan principal and interest, as if they are servants of the banks," the banking sector is on edge after the release of this report. Since the president's remarks, details of salaries and severance pay reaching into the hundreds of millions have been disclosed, which could worsen public opinion. A representative from a commercial bank said, "Isn't the next step for authorities to pressure interest rate cuts or talk about social contributions?"