So-Called 'Dream Job' Proves True... Average Annual Salary of 100 Million Won, Severance Pay at 300 Million Won [Bank Status Report] ②

Korea Federation of Banks Releases "Bank Management Status Disclosure Report"
Average Salary of Employees at the Five Major Banks Exceeds 100 Million Won
Among Internet Banks, Toss Bank Ranks First, Followed by Kakao and K Bank
KB Tops the List for Highest Average Executive Compensation

The average annual wage per employee at the five major commercial banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) exceeded 100 million won last year. In particular, the average annual wage for executives ranged from 200 million to 500 million won. Excluding banks that do not operate a separate severance pay system, the average severance pay received was confirmed to be 300 million won.

Bankers' Salaries Exceeding 100 Million Won... KB Kookmin Bank Tops the List

According to the "Bank Management Status Disclosure Report" released by the Korea Federation of Banks on May 30, the average annual wage per employee at the five major banks was 115.42 million won. This report was prepared in accordance with the 2023 recommendation by the financial authorities' "Banking Sector Management, Business Practices, and System Improvement Task Force (TF)" that each bank voluntarily disclose its management status, including profits, expenses, and dividends, every year.

By bank, KB Kookmin Bank had the highest average annual wage per employee at 117.54 million won, while Woori Bank had the lowest at 111.29 million won. Hana Bank paid 117.25 million won, Shinhan Bank paid 116.11 million won, and NH Nonghyup Bank paid 114.93 million won in employee compensation.

Specifically, at KB Kookmin Bank, the wage increase rate was set at 2.8% through collective bargaining, and the increase was reflected in salaries, with an average of 7.8 million won per person paid based on management performance. At Shinhan Bank, employee salaries increased by 5.98% compared to the previous year, which the company attributed to an increase in base salary following a wage hike. Hana Bank also saw a 0.8% year-on-year increase in average employee income, which the company explained was due to a 2.8% wage increase resulting from labor-management negotiations and the payment of management performance bonuses.

For executives, KB Kookmin Bank also topped the list with an average annual wage of 555.68 million won per executive. This was followed by Hana Bank (360.26 million won), Woori Bank (246.25 million won), Shinhan Bank (230.41 million won), and NH Nonghyup Bank (217.61 million won).

Internet Banks Also See Average Annual Wage of 100 Million Won... Banks Secure Average Severance Pay of 300 Million Won

The average annual wage per employee at internet-only banks was also around 100 million won. Toss Bank paid the highest at 112.17 million won, followed by Kakao Bank at 111.14 million won. K Bank's average was slightly below 100 million won at 95.82 million won. Toss Bank's average annual wage per employee decreased by 15.7% compared to the previous year, which the company explained was the result of increased hiring of young people and recent graduates.

Among the three internet banks, Kakao Bank paid the highest average annual wage per executive at 341.60 million won, followed by Toss Bank (267.73 million won) and K Bank (154.13 million won).

Excluding banks that do not operate a voluntary retirement program among the five major commercial banks and the three internet banks, the average severance pay per person was about 300 million won. The figures were 370 million won at KB Kookmin Bank, 317.06 million won at Toss Bank, 312.86 million won at Shinhan Bank, and 300 million won at NH Nonghyup Bank.

KB Kookmin Bank stated, "In addition to the basic severance pay that must be paid by law, we also provide special severance pay for long-term employees," adding, "In January last year, 674 employees retired through the voluntary retirement program, and we paid a total of 249.7 billion won in voluntary retirement benefits."

Shinhan Bank explained, "The average voluntary retirement amount per person increased by 1.8 percentage points compared to the previous year, which was due to a higher proportion of employees in higher positions and older age groups, even though the average number of months paid decreased from the previous year."