Yoon Jong-won, CEO of IBK, "Promoting Voluntary Retirement Introduction in Cooperation with KDB and KEXIM"

Yoon Jong-won, the new president of IBK Industrial Bank, is delivering his inaugural speech at the inauguration ceremony held on the 29th at the IBK headquarters in Euljiro, Jung-gu, Seoul. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Haeyoung Kwon] Yoon Jong-won, President of IBK Industrial Bank of Korea, announced that he will promote the introduction of voluntary retirement in cooperation with KDB Industrial Bank and Korea Eximbank.

On the 29th, immediately after the inauguration ceremony held at the IBK headquarters in Euljiro, Jung-gu, Seoul, President Yoon told reporters in response to a question about his intention to promote voluntary retirement for employees subject to the wage peak system, "As IBK is a policy bank, there are many related institutions such as KEXIM, KDB, and the Korea Credit Guarantee Fund" and made this statement.

He said, "There are issues of fairness with other institutions (financial public enterprises) and differences with competing institutions, so we will work together with policy banks in the same position to improve the situation."

The introduction of voluntary retirement has long been a wish of financial public enterprises. Due to personnel stagnation, the need for voluntary retirement is urgent, but budget issues are an obstacle. To implement voluntary retirement, approval from the Ministry of Economy and Finance and the Financial Services Commission is required, and since it involves large retirement payment expenditures, its introduction is not easy.

On the other hand, commercial banks conduct voluntary retirement targeting employees entering the wage peak system. Although banks incur large short-term costs, they can slim down their organizations in the mid to long term, and employees can leave by receiving several years' worth of salary as special retirement pay in exchange for lower wages, so voluntary retirement is regularly carried out.

Meanwhile, the IBK labor union announced a joint labor-management declaration the day before, focusing on the early resolution of the voluntary retirement issue.

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