NH Nonghyup Bank Finalizes 446 Voluntary Retirees, Marking Third Consecutive Year of Increases
Shinhan Bank, Busan Bank, and Kyongnam Bank Also Implement Voluntary Retirement Programs
Commercial banks, often referred to as "dream workplaces" with average annual salaries exceeding 100 million won, are continuing to accept applications for voluntary retirement at the end of the year and the beginning of the new year. Notably, some banks have lowered the eligible age for voluntary retirement to employees in their 40s, leading to expectations of another wave of large-scale layoffs this year.
According to the financial sector on December 17, NH Nonghyup Bank finalized 446 employees as voluntary retirement recipients after accepting applications for its "2025 Honorary Retirement Program" last month. This figure is 55 people, or 14%, higher than last year’s 391 recipients. In 2023, the number of retirees was 372, marking three consecutive years of increases.
NH Nonghyup Bank accepted voluntary retirement applications from November 18 to 21. Employees born in 1969 will receive 28 months of their average salary at the time of retirement, while general employees aged 40 or older with at least 10 years of service will receive 20 months of their average salary.
Shinhan Bank is also accepting voluntary retirement applications until December 18. For employees at the assistant branch manager level or higher, those born in 1967 or later with at least 15 years of service are eligible. For general staff at grade 4 or below, those born before 1985 with at least 15 years of service qualify. Since most employees born in 1985 are 40 years old, Shinhan Bank has reintroduced the "age 40" criterion it first implemented two years ago. For the retail service division, the requirement has been further lowered to "at least 10 years of service." The special severance pay ranges from 7 to 31 months of base salary, depending on birth year and other factors.
Hana Bank previously included employees aged 40 or older with at least 15 years of service as eligible for voluntary retirement in its special retirement program implemented in July.
The wave of layoffs is not limited to commercial banks but is also spreading to regional banks. Busan Bank accepted voluntary retirement applications through last week, with about 70 employees applying. Eligible applicants were those born between 1970 and 1975. The special severance pay amounts to 27 to 29 months of average monthly salary, plus a reemployment support payment of 3.5 million won.
As the eligible age for voluntary retirement continues to decrease, more bank employees are packing up their desks. At the beginning of last year, the number of retirees at commercial banks was around 1,900, but at the beginning of this year, it increased to about 2,300.
The main reason commercial banks are expanding voluntary retirement to employees in their 40s and pursuing large-scale downsizing is to "streamline their organizations." The need for workforce restructuring and organizational slimming has grown as the number of bank branches has significantly decreased due to the expansion of non-face-to-face transactions and the acceleration of digital transformation.
With commercial banks actively pursuing voluntary retirement, it is expected that around 2,000 bank employees will leave their jobs early next year.
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