Shinhan Card Calls for Another Round of Voluntary Retirement in Six Months... Offers Up to 30 Months' Severance Pay

Impact of Poor Performance... Downsizing Underway

Shinhan Card has decided to accept applications for voluntary retirement this month, following a similar move at the end of last year.

Shinhan Card Headquarters, Euljiro, Jung-gu, Seoul. Shinhan Card

According to the financial industry on June 4, Shinhan Card plans to accept applications for voluntary retirement starting from the 19th of this month, following the process carried out at the end of last year.

The company is expected to offer a special severance package equivalent to up to 30 months of average monthly salary. The eligible employees are reportedly those born between 1968 and 1979.

This round of voluntary retirement is the first since CEO Park Changhun took office in January.

Previously, Shinhan Card lost its top spot in the industry to Samsung Card, with an annual net profit of 572.1 billion won last year compared to Samsung Card's 664.6 billion won.

In the first quarter of this year as well, Shinhan Card's net profit fell by 26.27% year-on-year to 136.9 billion won, lagging behind Samsung Card's 184.4 billion won.

Its financial soundness indicators have also deteriorated.

As of the end of the first quarter, Shinhan Card's delinquency rate stood at 1.61%, up 0.05 percentage points from the same period last year (1.56%) and 0.10 percentage points from the previous quarter (1.51%). This is the highest level since the end of the third quarter of 2015, when it was 1.68%.