"Wanna Join Kakao Bank for Higher Pay?"... Half of Retired BOK Employees Earn 51 Million KRW, 2030 [MZ Leaving 'Shinui Jikjang']

Bank of Korea Faces Resignations
Impact of Salary and Treatment
Concerns Over Talent Drain from State-Owned Banks

The Bank of Korea has seen a continuous wave of resignations among its young employees in their 20s and 30s. Over the past three years, about 60 employees in their 20s and 30s have left the Bank.

According to the 'Status of Retirees from Financial Public Institutions' 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, the total number of retirees from the Bank of Korea last year (excluding retirement due to age, wage peak application, and indefinite contracts) was 38. Among them, 8 were in their 20s and 14 in their 30s, making young employees more than half. This is the opposite situation compared to 10 years ago. In 2013, out of 24 retirees, 15 were in their 40s and 50s, accounting for about 63%, while only 9 were in their 20s and 30s.

Although there are fluctuations each year, the total number of retirees in their 20s and 30s at the Bank of Korea over the recent three years (2021?2023) reached 62. This is 2.5 times the 24 retirees recorded 10 years ago (2011?2013). On the other hand, retirees in their 40s and 50s over the past three years numbered 42, which is about 39% less compared to 69 retirees 10 years ago.

This trend is closely related to the Bank of Korea’s stagnant salary and treatment levels over several years. Young employees are sometimes moving to internet-only banks like KakaoBank instead of staying at the Bank of Korea. Yoo Hee-jun, chairman of the Bank of Korea’s labor union, said, "The biggest reason is the salary," adding, "Because it is tied to the Ministry of Economy and Finance’s management, there is no expectation of improvement in the future." The Bank of Korea’s personnel expenses are determined by the Ministry of Economy and Finance according to the Bank of Korea Act.

As of 2022, the average annual salary at the Bank of Korea was 103.31 million KRW, and the average compensation for new employees was 51.76 million KRW. This is lower than the five major commercial banks. In the same year, the average annual salaries were 114.59 million KRW at Hana Bank, 113.69 million KRW at Kookmin Bank, and 109.7 million KRW at Shinhan Bank. KakaoBank recorded an average annual salary of 135.79 million KRW.

Regarding this, Assemblyman Hong said, "From the perspective of long-term national competitiveness, talent should be attracted to central banks and policy banks," but expressed concern that "everyone is responding complacently as if facing a gray rhino, which will cause serious consequences in the future." He advised expanding wages, welfare benefits, and self-development opportunities comparable to the private sector. In Japan, as the number of civil service applicants sharply declined, measures such as salary increases and the introduction of a four-day workweek are being pursued. Assemblyman Hong added, "A shift in government perception is needed, which has conventionally only squeezed employees," emphasizing, "It should be approached from the perspective of investing in people."