[Bank Status Report] Annual Salary 'Over 100 Million Won'... Retirement Pay 'Up to 600 Million Won' (Comprehensive)

Korea Federation of Banks 'Bank Management Status Disclosure Report'

Among the 5 Major Banks,
Employee Salary and Retirement Pay Highest at Hana Bank with 110 Million KRW and 600 Million KRW Respectively
Highest Executive Salary at Kookmin Bank with 380 Million KRW

After President Yoon's "Bank Servant" Remarks, Repercussions Follow

The average annual labor income per employee at the five major banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) last year all exceeded 100 million KRW. In particular, the labor income of executives at these five banks ranged from 200 million 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 from last year, the compensation of bank employees generating the highest profits reached the hundred-million KRW level.

Bankers' Salaries That Sound Like Billions

First, looking at the 'average labor income per employee' at the five major banks, Hana Bank topped the list with 114.85 million KRW. It was followed by 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).

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 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) in order.

The 'average severance pay per employee' at Hana Bank reached 600 million KRW (598.17 million KRW). Woori Bank (441.54 million KRW) and KB Kookmin Bank (408.72 million KRW) 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 per employee' was highest at Hana Bank (407.94 million KRW), followed by 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 figure.

On the 23rd, as domestic market interest rates and bank loan interest rates rapidly rise, a banner displaying loan interest rates is hung on the exterior wall of a commercial bank in Seoul. Photo by Jinhyung Kang aymsdream@

KakaoBank Executives Earn 750 Million KRW Thanks to Stock Options

Including the five major banks and internet-only banks, KakaoBank had the highest 'average labor income per employee.' KakaoBank's average annual salary per employee was 135.79 million KRW. Toss Bank was 116.04 million KRW, and K Bank was 89.45 million KRW.

A KakaoBank official explained, "The bonus includes the profit from exercising stock options for the year, which results in a higher average income. The stock option exercise profit is calculated based on the difference when exercising stock options and does not mean the company actually provides cash to employees."

Due to stock options, KakaoBank's average labor income per executive was also the highest among all banks at 751.23 million KRW. Toss Bank was 253.98 million KRW, and K Bank was 162.74 million KRW.

Among regional banks, those with average annual salaries exceeding 100 million KRW per employee were Busan Bank (112.25 million KRW) and Gyeongnam Bank (108.51 million KRW).

Citibank, which conducted a large-scale voluntary retirement program last year, had an average voluntary retirement pay per employee of 604.35 million KRW.

Following President Yoon Suk-yeol's warning on the 30th of last month, stating, "It is deeply regrettable that small business owners struggling with high interest rates work themselves to death only to have all their earnings go toward repaying loan principal and interest, making them feel like servants to the banks," the banking sector is on alert after this report's release.

Since the disclosure of the banks' hundred-million KRW-level salaries and severance pay after the president's remarks, social sentiment may worsen. A representative from a commercial bank said, "Isn't the next step for authorities to pressure interest rate cuts or talk about social contributions?"