[Exclusive] KFDA Retirees in Their 20s Reach Highest in 10 Years [MZ Leaving the Trusted Workplace]

Continued Departure of 20s and 30s
Impact of Salary and Treatment
The Concept of Lifetime Employment Also Disappearing

Last year, the number of retirees in their 20s at the Financial Supervisory Service (FSS) reached the highest level in the past decade. Factors such as salary and treatment, promotion bottlenecks, and changing mindsets appear to have contributed collectively.

According to the 'FSS Retiree Status' data obtained on the 16th by Asia Economy through the office of Hong Seong-guk, a member of the National Assembly's Political Affairs Committee from the Democratic Party of Korea, the number of retirees last year (excluding retirement due to age, wage peak application, indefinite contracts, and executive retirement) was 49. Among them, 7 (14.2%) were in their 20s. This is the highest number of 20-somethings leaving the FSS in the past 10 years.

From 2013 to 2020, there were either no retirees in their 20s or only 1 to 2, but in the last three years, the number has steadily increased with 4 in 2021 and 5 in 2022.

Among last year's retirees, those in their 30s also numbered 6. Adding the 20s retirees, 26.5% (13 people) of all retirees were in their 20s and 30s. There were 5 retirees in their 40s and 31 in their 50s. The number of retirees in their 50s also increased by about 35% compared to the previous year (23), which is interpreted as an effect of recent generational change at the FSS. Last year, Lee Bok-hyun, the head of the FSS, conducted a large-scale personnel reshuffle replacing more than 80% of department heads at the bureau and office chief level.

Looking at the data by years of service shows a similar trend. Last year, 6 employees with 0 to 1 year of service left. Ten years ago, there were almost no retirees with 0 to 1 year or 2 to 3 years of service, but the numbers have gradually increased with 2 in 2021 and 2 in 2022.

The departure of young employees from the FSS seems to be due to multiple factors such as salary and treatment, and promotion bottlenecks. An FSS official said, "Salary and treatment are probably the biggest reasons," adding, "In the past, the FSS boasted high salary levels compared to the financial sector, but recently, as financial companies have significantly improved their salaries and treatment, many young employees are considering changing jobs." The average salary at the FSS was about 110.07 million KRW in 2022, which is only an increase of 4.69 million KRW (about 4.5%) compared to 2018 (about 105.38 million KRW).

Looking at retirees by salary, among last year's retirees, 27 earned less than 50 million KRW, the largest group, followed by 8 earning between 50 million and 100 million KRW, 10 earning between 100 million and 150 million KRW, and 4 earning over 150 million KRW.

Besides salary, promotion bottlenecks and stricter reemployment screening also have an impact. According to the current Public Officials Ethics Act, FSS employees at grade 4 or higher cannot be employed by financial companies for three years after retirement. Additionally, some analyses suggest that as new hires have increased recently, retiree numbers have also risen proportionally.

Another FSS official said, "Promotion bottlenecks and public official employment screening at retirement also have an effect," adding, "In the past, there was a belief that if you endured, you would reach at least a certain position, but recently, promotion guarantees have become difficult."

The changing mindset of the younger generation also seems to contribute to early departures. A financial sector official said, "Not only at the FSS but also in central government agencies, it is not uncommon for retirees to prepare for law school or dental graduate school after retirement," adding, "This seems to reflect the characteristics of today's younger generation, who do not have the concept of a lifelong job."