Despite Starting Salary of 65 Million Won, 'Bank Job Offers Rejected' Surge... Where Did They Go?

Choosing Corporations and IT Firms Over Banks After Passing Recruitment
Young Generation Burdened by Banks' Vertical Organizational Culture
Negative Perceptions on Banks' Vision and Prospects

As the prolonged impact of the "3 highs" (high inflation, high interest rates, and high exchange rates) spreads to the job market, it has been revealed that many successful candidates for commercial banks, with starting salaries reaching up to 65 million KRW, have declined to join, drawing attention to the reasons behind this trend. These candidates, armed with high qualifications, are reportedly choosing large corporations or information technology (IT) companies over commercial banks.

ATMs of major commercial banks are installed on a street in downtown Seoul. Photo by Jo Yong-jun

According to Money Today on the 8th, about half of the successful candidates in the second half of last year’s recruitment at a commercial bank did not ultimately join the company. This bank had planned to hire approximately 130 new employees last year, but it is reported that only half of them actually completed training at the academy and were assigned to the field. Due to this wave of "declined offers," complaints have emerged within the banking sector that even if they hire the target number of employees, it is difficult to meet the goal because fewer candidates actually join.

Since commercial banks are known to offer the highest starting salaries among office workers, this has come as a surprise to many. The starting salaries at the four major commercial banks, including various allowances, are around 60 to 65 million KRW. Most of the successful candidates who did not join the banks are understood to have chosen large corporations or IT companies instead. This means that highly qualified job seekers now have many alternatives to banks.

Within the industry, it is said that although the banking sector has traditionally been preferred by highly qualified job seekers due to its high starting salaries, the times have changed and alternatives have increased. The younger generation, who prefer a flexible working environment, are turning away from the vertically structured culture prevalent in banks toward the IT industry. In fact, when looking at information about commercial banks on job information sites, they often receive high scores in salary, welfare, and work-life balance, but negative opinions are much more common regarding organizational culture, vision, and prospects.

However, some in the banking sector say this phenomenon stems from "multiple acceptances" by highly qualified candidates. One job seeker may have been accepted by several commercial banks simultaneously, resulting in fewer final joiners. It has not yet been confirmed whether the decline in joining is a temporary phenomenon or if the number of declined offers is increasing as a trend.