COVID-19 Response: Remote Work Allowed at IBK but Not at Commercial Banks?

One-Fifth of Employees at IBK Capital Region Headquarters and Branches Work from Home
Commercial Banks Operate Branch Staff Minimally, Expressing Practical Difficulties

On the 8th, when social distancing level 2.5 was implemented to prevent the spread of the novel coronavirus infection (COVID-19), a notice informing of shortened business hours was posted at Kookmin Bank in Yeouido, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Park Sun-mi] In line with the implementation of social distancing level 2.5 in the Seoul metropolitan area to prevent the spread of the novel coronavirus infection (COVID-19), IBK Industrial Bank of Korea has shifted 20% of its headquarters and branch employees to a work-from-home system. While commercial banks plan to increase the proportion of dispersed and remote work if the COVID-19 spread worsens, they express difficulties in including branch employees in the work-from-home arrangements.

According to the financial sector on the 10th, Industrial Bank of Korea started operating from the previous day until the 28th by assigning one-fifth of the employees at its Seoul headquarters (main office) and all branches in Seoul, Incheon, and Gyeonggi areas as remote workers. Approximately 7,500 employees, including headquarters and branch staff, are subject to work-from-home. For non-metropolitan areas, the bank has decided to apply the same measures as the metropolitan area if social distancing is raised to level 2.5.

Unlike last September when Industrial Bank of Korea, which recently established a remote work system, had headquarters employees complete various training programs at home in a training format, this time employees perform their usual work remotely as normal. However, branch employees, whose main task is customer-facing, work by completing mandatory online education and training programs.

Currently, Industrial Bank of Korea is the only bank to include branch employees in the work-from-home roster during the application of social distancing level 2.5 in the metropolitan area. Previously, during the second wave of COVID-19 in September, it was the only bank to temporarily include branch employees in the work-from-home group.

Industrial Bank of Korea, the only bank to include branch employees in work-from-home
Possibility of expanding remote work ratio if raised to level 3

An Industrial Bank of Korea official said, "According to the original guidelines, only 20% of headquarters staff and 10% of branch staff were supposed to work from home at social distancing level 2.5, but due to the urgent need for preemptive measures to prevent COVID-19 spread, we have strengthened the work-from-home system beyond the plan." The bank planned that if social distancing is raised to level 3, one-third of headquarters staff and one-fifth of branch employees would work from home, and if the level is actually raised, the proportion of remote work at headquarters and branches may be expanded beyond the plan.

The industry is closely watching the possibility that Industrial Bank of Korea’s inclusion of branch employees in remote work could spread throughout the banking sector. Among branch employees of commercial banks, voices are already emerging expressing fear of COVID-19 spread and calling for expanding work-from-home not only to headquarters but also to branches.

However, commercial banks say it is realistically difficult to consider work-from-home for branch employees. Unlike in the past when 20 to 30 people worked at one branch, most branches now operate with 10 to 20 employees, and many small branches have about 10 employees, making it difficult to include branch employees as remote workers, a common concern.

Banking sector closely watching Industrial Bank of Korea’s case but
"Work-from-home for branch employees is practically difficult"

An official from Bank A said, "Branches are already operated so tightly that if even one person is absent, work cannot proceed," adding, "Reducing staff further is a burden for the bank." An official from Bank B explained, "Industrial Bank of Korea has a low proportion of retail customers, so branch employees can work from home, but general commercial banks have no choice but to apply staggered working hours for branch employees as an alternative."

Some argue that since non-face-to-face services are expanding, commercial banks could also enable branch employees to work from home by improving branch work efficiency. Even though Industrial Bank of Korea has many corporate clients, the number of employees per branch and the nature of work are similar, so if a system is established where colleagues efficiently share the work of remote employees, it is fully manageable.

An official from Bank C said, "Currently, banks are responding by encouraging branch employees to take leave, but if the COVID-19 situation worsens, they will have no choice but to consider assigning branch employees as remote workers," adding, "Since there is already a precedent, we are closely monitoring the situation."

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