Banking Sector Recruitment Opens... But Scale Shrinks Significantly and Focuses on Specialists

Shinhan Bank 250 and Woori Bank 200
Combined Scale with IT Field Continuous Recruitment
General Recruitment Expected to Be Less Than Half of Last Year

[Asia Economy Reporter Jo Gang-wook] The hiring doors of commercial banks, which had been frozen, have begun to open again. Starting with Shinhan and Woori Banks, major commercial banks such as KB Kookmin, Hana, and NH Nonghyup Banks are also expected to finalize their public recruitment schedules soon. However, due to profitability deterioration caused by the COVID-19 pandemic, branch closures, and the expansion of non-face-to-face channels, each bank is reducing the scale of general clerk recruitment to as little as one-fifth, making the hiring drought a reality. On the other hand, as the importance of talent in digital and ICT fields grows, there is a forecast that the shift from general public recruitment to specialized occasional hiring will accelerate in the future.

Bank Sector Employment Becomes a 'Needle's Eye' Due to COVID-19 Impact

According to the financial sector on the 15th, Shinhan Bank and Woori Bank started their second half recruitment schedules the day before. Shinhan Bank's second half recruitment is for a total of 250 people. This number includes both general entry-level public recruitment and occasional recruitment in digital and ICT fields. Similarly, Woori Bank will hire a total of 200 people combining general, digital, and IT fields.

Bank clerks are considered one of the preferred jobs among job seekers due to high salaries and excellent welfare benefits. In a situation where corporate hiring doors were tightly closed due to the COVID-19 impact this year, the news of these banks' public recruitment is a rare piece of good news for job seekers. However, with the recruitment scale significantly reduced, employment is expected to become a 'needle's eye.'

Shinhan Bank recruited about 1,000 people last year, including entry-level public recruitment and occasional experienced hires, with 630 in the first half and 350 in the second half. About half of these were entry-level public recruits. This year, there was no public recruitment in the first half, and the total recruitment including occasional hires in the second half is 250, so the scale of general public recruitment is expected to be less than half of last year's.

Woori Bank recruited a total of 750 people last year, with 300 in the first half and 450 in the second half. The proportion of entry-level public recruits among this year's hires has not been finalized. However, since they already conducted occasional recruitment for the first time in the first half this year and hired 40 specialists, and recently announced 25 successful candidates for the administrative support group, the scale of entry-level recruitment is expected to be about 130 people. This is about one-fifth of last year's level. Regional banks that have already started recruitment have reduced their hiring scale to less than half compared to last year.

Other major commercial banks such as KB Kookmin, Hana, and NH Nonghyup also plan to proceed with recruitment procedures soon. KB Kookmin Bank is reviewing the number of hires, process, and timing, and is expected to announce specific plans before Chuseok. However, it is anticipated that the scale will be about half of last year's 500 hires. Hana Bank, which selected about 400 people last year combining regular public recruitment and occasional hiring, has not yet finalized its recruitment plan. NH Nonghyup Bank, the only one among the five major banks that recruited 280 people including first half public recruitment, is expected to finalize its second half recruitment schedule as early as this week. The scale is expected to be similar to last year's second half recruitment of about 190 people.

Impact of Profitability Deterioration Leading to Non-Face-to-Face Activation and Branch Reduction

The decrease in recruitment by commercial banks is related to the activation of non-face-to-face services and branch reduction due to profitability deterioration amid the COVID-19 pandemic. As of the end of June in the first half of this year alone, Kookmin Bank closed 53 branches and Hana Bank closed 51 branches, reducing the total number of branches of 17 domestic commercial banks by 146 compared to the same period last year. Along with branch reduction, the reallocation of workforce means that an equivalent number of new employees will not be hired.

Meanwhile, the preference for digital and specialized professionals is growing stronger. Shinhan Bank established a special recruitment track for digital and ICT master's and doctoral degree holders this year. It also plans to start a customized occasional recruitment process next month to select talent specialized in fields such as investment banking (IB), financial engineering, and digital planning. Woori Bank will hire new employees in three sectors: general, digital, and IT. The emergence of new internet-only banks such as Naver Financial and Toss Bank is also fueling the demand for digital and IT personnel.

A financial sector official said, "The boundaries between finance and ICT have already been broken down, and traditional banks are now focused on transforming into digital finance," adding, "As the importance of digital and IT talent grows, the shift from public recruitment to occasional hiring will expand."

This content was produced with the assistance of AI translation services.