Bank Sector Early Retirement 'Cutting Wind'... Even 30s Included (Comprehensive)

Hana and Woori Bank Begin Accepting Voluntary Retirement Applications from the 2nd
Earlier, NH Nonghyup, Shinhan, and KB Kookmin Banks Also Conducted Voluntary Retirement Programs

The banking sector is once again implementing large-scale voluntary retirement programs this year. While the age range of eligible candidates has been lowered to include employees in their 30s due to accelerated digitalization and organizational slimming, the amount of severance pay is expected to remain similar to last year.

According to the financial sector on the 3rd, Hana Bank and Woori Bank began accepting voluntary retirement applications yesterday, following KB Kookmin Bank, NH Nonghyup Bank, and Shinhan Bank.

Hana Bank announced on the 2nd that it will accept applications for special early retirement until the 6th. Eligible candidates are general employees aged 40 or older with at least 15 years of service as of the 31st. Severance pay will be based on age, with a maximum of 24 to 31 months of average wages. This is the same condition as the voluntary retirement program conducted earlier last year. Employees born in the second half of 1969 through 1972 can receive additional benefits such as children’s tuition, medical expenses, and job transition support funds. The wage peak special retirement, conducted twice a year, will also target employees born in the first half of 1969. The special retirement pay is expected to be about 25 months of average wages (differentiated by birth month).

Woori Bank also announced on the 2nd that it will accept voluntary retirement applications until the 7th for employees who have worked for more than 10 years since joining as regular employees. Upon confirmation of retirement, employees born in 1969 will receive 19 months of average wages, and those born in 1970 or later will receive 31 months of average wages as special retirement pay. Additional support such as children’s university tuition, reemployment support funds, and health check-up expenses will also be provided. This is similar to previous years. Last year, employees born in 1968 received 24 months, and those born after 1969 received 31 months of average wages.

Among commercial banks, NH Nonghyup Bank was the first to open the voluntary retirement program. Nonghyup Bank completed its voluntary retirement application process in November last year. Applications were accepted from employees aged 40 to 56 with more than 10 years of service. Special retirement pay was provided based on age, with a maximum of 20 to 28 months of wages, maintaining last year’s level.

Shinhan Bank accepted voluntary retirement applications from the 13th to the 17th of last month. While last year the target was employees aged 44 or older, this year the eligibility was expanded to include employees in their 30s, which drew attention. Shinhan Bank accepted applications from employees aged 38 or older, with a total of 534 applicants reported. Special retirement pay ranges from 7 to 31 months of average monthly wages depending on birth year, the same as the previous year. The retirement implementation date is January 2nd.

KB Kookmin Bank has been accepting voluntary retirement applications since the 16th of last month. Last year, applications were accepted up to employees born in 1972, but this year the eligibility has been expanded to those born in 1974. Special retirement pay will be provided at the same level as last year, ranging from 18 to 31 months of wages, with additional support such as children’s tuition and reemployment support funds provided separately.